The ministry of international trade and industry (MITI) has issued a media statement announcing the new changes to the CBU electric vehicle (EV) policy, following on the end of the four-year tax exemption period for fully-imported EVs under the franchise approved permit (AP) scheme on December 31, 2025.
The ministry said that starting from July 1, 2026, all importation of CBU EVs are subject to two main conditions, and they are that any EV being imported must have a minimum declared cost, insurance and freight (CIF) value of RM200,000, and a minimum power output of 180 kW (which is equivalent to 245 PS or 241 hp).
It said this adjustment was communicated to AP franchise holding companies through an engagement session held on April 30 this year.
The ministry added that, taking into account that some companies still had remaining stock of vehicles, including existing stock, those at the port and in transit, it would allow the said stock to be sold according to the regulations within the special exemption period until these are exhausted.
For the full explanation on what the new regulations mean, read our comprehensive article detailing all the changes that will likely come about with the introduction of the updated policy.
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I just like to make a few points about this issue..
1) Stupid MITI
2) Stupid MITI
3) Stupid MITI
4) Stupid MITI
5) Stupid MITI
Looks like there is no smart ppl in MITI
What happens rakyat stop buying new P1 and P2 for 6 months..a moratorium on buying new “national ,rebadged “cars…just buy good pre owned of any marque…see what new protection is coming forth from this MITI.
Time to give the used car market a boost.
After 4 decades,it is a laughing stock to give unlimited and increasing perlindungan to P1 n 2.
Imagine a healthy 40 year old man on double crutches.
They ain’t stupid , they just cronies taking kickbacks from their masters at P1/2.
haha…it should be … kronism and protectionism
got smart ppl…but only for their own good
How can you call these people stupid when he can laughing to the bank in your face? lol
because all the smart people are alraedy working in home ministry , smartest is the unelected former umno minister saifudin
And that previous MITI says Malaysia needed APs to ensure EVs cars sold here are safe so what ever that means lah!
Market determines car prices, not the gov’t – MITI
September 8 2025
…The investment, trade and industry ministry (MITI) has said that car prices in Malaysia are market-determined and not controlled by the government, which has provided various incentives and tax breaks for locally-assembled (CKD) vehicles via the finance ministry, Bernama reports.
“The purpose of these incentives includes encouraging the use of locally produced components from vendors, promoting quality investments, and conducting research and development activities in Malaysia.
“Through these incentives and tax exemptions, vehicle manufacturers can offer competitive prices for the local market compared to fully imported vehicles,” MITI wrote in reply to Senator Datuk Ahmad Ibrahim, who asked in the Dewan Negara if the ministry intends to review the prices of Malaysian-made cars, which are perceived as expensive despite zero import duties, forcing people to take long-term loans.
Under normal circumstances, I would fully support the traditional automotive policies championed by MITI and Dato’ Jo of UMNO. However, we are currently navigating a period of economic crisis. Since 2014, Malaysia has been a net importer of oil; our dependence on fossil fuels is a vulnerability we must address.
According to data from Google Gemini, Malaysia’s total revenue from vehicle excise taxes, duties, and sales for 2025 stands at approximately RM19 billion. Even if we maintain the current tax exemptions for Electric Vehicles (EVs), the government is projected to retain roughly that same RM19 billion in revenue from the broader automotive sector.
The real fiscal drain is the fuel subsidy, which currently costs the nation roughly RM7 billion per month. By incentivizing EV adoption and streamlining the installation of charging infrastructure, we can significantly reduce this subsidy burden while keeping tax revenue stable.
Critics often argue that EVs are “toys for the rich.” However, every wealthy individual who switches to an EV is one less person consuming subsidized fuel, directly easing the government’s financial load.
I propose the following to MITI and Dato’ Jo:
Maintain Ultra-Low CBU EV Taxes: Keep current incentives for another 6 months.
Dynamic Review: Re-evaluate after 6 months. If oil prices remain high, maintain the tax breaks.
Strategic Pivot to CKD: Only push for mandatory local assembly (CKD) once oil prices stabilize (e.g., below USD80 per barrel).
Targeted Support: As fuel subsidy costs drop, the government will have more fiscal room to support the Rakyat through initiatives like increasing the BUDI subsidy rate.
With such POWER RM300K for CBU EV is nothing.
What is cheapest petrol cars with 240 HP ?
good job madanon
I dont understand this policy. The government need to reduce budi95 which is costing them 5 billion a month. EV is one of the best ways to do this. Open the door to cheap micro EVs, and people will buy cheap EVs and stop buying subsidies fuel. Titiwangsa moaning about EVs costing us $3 billion in tax revenue, but if most malaysian switch to cheap EVs we can save $50 billion annually!!
When there’s cronies who wana protect each other to fulfill own agenda and own pocket! this is what happened! SYABAS MITI!
I really hope all those affected PULL OUT directly… INCLUDE the BYD! lets those stupid A-Hole know how stupid they are! Even they dont wanna admit it, the whole world know they are!
The fact that our PMX dont dare to touch this mr.JOJO, probably becoz he’s from BN/UMNO, he know his political future is in messed now! his PKR is in deep trouble, he just have to please this BN cronies! and let them do whatever they wan! IN THE END, the whole industry in jeopardy… the people’s pocket and options in jeopardy!
Bodo ke? I thought the government is supposed to serve the people. Too naive I guess…..
Next level cronyism and corruption in plain sight.
Above RM300k, we see powerhouse EVs like the Denza D9 (369hp AWD), Zeekr 009 (603hp AWD), and Xpeng X9 (315hp FWD) entering Malaysia.
However, strict CBU (Completely Built-Up) regulations mean popular RM50k–RM200k top global models get delayed, leaving us with old tech.
Rakyat surely going to marah because we want latest models on time, not 2 years later?
Miti the best. Please don’t let cheap and unsold cars come to Malaysia.
Fuuhhhh kilat jubo pak menteri ko jilat… Simpan la sikit bodoh tu… Cucu cicit cirit birit ko pon nk gak
has MITI truly act in the sole interest of the rakyat or is it just another big protectionist corporate arm.
You are even better than MITI! as u r the best in BRAIN DEAD
jual kt komunis, kene jaga lgi eh