KUALA LUMPUR: The government will continue to provide incentives for the development of electric vehicle (EV) charging infrastructure, even though these incentives were not specifically mentioned in Budget 2025. The Ministry of Investment, Trade and Industry (MITI) announced that among the incentives is the Green Investment Tax Allowance (GITA) programme, which offers Charging Point Operators (CPO) a 100 per cent tax exemption in the form of an Investment Tax Allowance for a period of five years. This allowance can be used to offset up to 100 per cent of statutory income for each assessment year.
According to BERNAMA News Agency, income tax exemptions are also being offered to companies manufacturing EV Charging Equipment. These exemptions provide a full income tax exemption on statutory income starting from the assessment year 2023 until the assessment year 2032. The ministry disclosed this information in a written reply on the Parliament website, responding to a query from Tan Kok Wai (PH-Cheras) regarding
specific allocations for EV charging infrastructure development in the current budget.
MITI further stated that the government anticipates the total number of electric-powered vehicles (xEV) on Malaysian roads to reach at least 400,000 passenger and commercial vehicles by 2030. As of September 30, 2024, the total annual sales for vehicles, including Hybrid, Plug-In Hybrid, Battery Electric Vehicles (BEV), and Fuel Cell Electric Vehicles (FCEV), amounted to 33,319 units. The sales rate for the entire year of 2023 was 4.12 per cent, translating to 35,723 units sold.
In support of the development of the EV Charging Bay (EVCB), MITI highlighted that Petronas’ subsidiary Gentari and Tenaga Nasional Bhd have invested approximately RM76 million up to June 2024. With significant financial contributions from both companies, more EVCBs are anticipated to be constructed across Malaysia, bolstered by other CPOs that offer EV charging services to the public.
“This positive development has helped boost the confidence of
EV enthusiasts in purchasing and using these vehicles,” according to MITI. Currently, around 30 CPOs are operating in the local market.