KUALA LUMPUR — BERSATU Puchong Division Associate Wing chief Dato’ Gan Yong Hwa said that if the government genuinely intends to accelerate the development of electric vehicles (EVs) in Malaysia, it must first improve the supporting infrastructure.
This includes speeding up the construction of public charging stations, strengthening the capacity of the national power grid, streamlining approval procedures and ensuring reasonable charging coverage across the country.
He said the government should not impose a levy on EV buyers to make up for its shortcomings in policy planning and infrastructure development.
Gan said public charging facilities are an essential part of Malaysia’s transition towards green mobility. The responsibility for developing such infrastructure should therefore be shared by the government, vehicle manufacturers and distributors, charging point operators, electricity providers and relevant investors, rather than placing most of the cost directly on consumers.
“On the one hand, the government is encouraging Malaysians to switch to EVs. On the other hand, it is considering imposing an additional charge on every EV sold. This contradictory approach will directly raise the cost of ownership and make EVs less accessible to the public.”
He was responding to Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani’s statement that the government was considering imposing a levy on every EV sold in Malaysia to establish a fund for the development of public charging facilities.
Gan said the proposal was not only unreasonable but could also slow the adoption of EVs in Malaysia, particularly among lower- and middle-income families who are considering entry-level or more affordable EV models.
“Consumers would first have to pay a charging infrastructure levy when purchasing an EV, and then pay electricity and service charges whenever they use a public charging station. Would this not amount to making consumers pay twice?
“The government cannot continue treating consumers as the easiest target whenever it needs to raise funds.”
Gan pointed out that the government had granted exemptions from import duty, excise duty and sales tax for EVs over the past four years, resulting in approximately RM3.3 billion in foregone tax revenue. However, investment in charging infrastructure had still fallen short of expectations.
He said this demonstrated that the government had failed to establish clear investment conditions, charging infrastructure commitments and performance indicators when granting the incentives.
“If the government granted billions of ringgit in tax exemptions without first specifying how many charging stations the beneficiaries were required to build, which areas they had to cover and the timeframe for completing them, then this was a failure of government policy design and oversight.
“The government cannot return several years later and ask consumers to pay for the consequences of those shortcomings.”
Gan suggested that vehicle manufacturers and distributors receiving tax incentives should be required to contribute to a development fund based on their sales volume or revenue.
Charging point operators, electricity providers, petrol station operators and property developers should also participate in establishing a fair industry-wide cost-sharing mechanism, he said.
“Those who derive commercial benefits from the EV market should bear a reasonable share of the responsibility for developing its ecosystem. The entire bill should not be handed to vehicle buyers.”
Gan urged the government to suspend the proposed levy on every EV and conduct open consultations with consumer organisations, automotive industry players, charging point operators, electricity providers and environmental groups before making any decision.
“EV development cannot be driven by slogans alone. The government also cannot offer incentives today and introduce another charge tomorrow to claw the money back from consumers.
“The government should remove barriers to the green transition instead of putting another ‘toll booth’ on the road towards green mobility.”