Malaysia is considering a one-off subsidy to encourage the adoption of electric vehicles (EVs) and promote the transition away from traditional internal combustion engines. The proposal, which aims to reduce fuel subsidies in the long term, has been submitted to the Finance Ministry by the Ministry of Investment, Trade, and Industry.

This potential subsidy would be in addition to existing incentives for battery electric vehicles (BEVs), such as import duty and excise duty exemptions for completely built-up (CBU) imported EVs until the end of 2025.

Additionally, EVs in Malaysia are exempt from road tax, and there's income tax relief for EV charger expenses. The move aligns with the upcoming market entry of EVs from national automakers Perodua and Proton.