Kuala lumpur: The government is implementing new policies and incentives aimed at accelerating the growth of the electric vehicle (EV) ecosystem, with a particular focus on expanding charging facilities across the nation, announced Deputy Investment, Trade and Industry Minister Sim Tze Tzin.

According to BERNAMA News Agency, the government is collaborating with several stakeholders, notably Tenaga Nasional Bhd, to construct more power substations. These substations are crucial for ensuring a sufficient power supply to support the development of EV charging facilities. During the Oral Answers session at the Dewan Rakyat, Sim emphasized the importance of substations, stating that the construction of charging facilities necessitates adequate power supply.

Sim further elaborated on the government's ongoing discussions to offer incentives to operators of charging facilities, thereby encouraging the development of more such infrastructures. He highlighted the necessity of these efforts, noting that without substations, it would be impossible to build charging facilities due to insufficient power supply. The government is committed to implementing appropriate policies and developing the entire ecosystem, although these initiatives require time to materialize.

In response to a supplementary question from Datuk Ku Abd Rahman Ku Ismail (PN-Kubang Pasu), Sim addressed the government's proactive measures to tackle the scarcity of EV charging facilities nationwide. These efforts align with the goal of achieving net-zero greenhouse gas emissions by 2050.

Sim also responded to Datuk Larry Soon @ Larry Sng Wei Shien (PBM-Julau) regarding the minimum value requirement of RM200,000 for cost, insurance, and freight (CIF), and minimum power of 180 kilowatts (kW) imposed only on fully imported EVs (completely built-up/CBU). He explained that the approach to EVs and internal combustion engine (ICE) vehicles differs due to their distinct stages of industrial development.

For ICE vehicles, the policy on importing CBU models has historically been based on engine capacity, allowing only models with a capacity of 1,800 cubic centimeters (cc) and above to be imported. For EVs, the government aims to balance accelerating EV use among the public while fostering the local assembly industry, supply chain, and overall EV ecosystem, ensuring Malaysia is not merely a consumer market.

Sim noted the differing tax and incentive structures for EVs compared to ICE vehicles, with the former benefiting from a lower excise duty rate of only 10 percent. This lower rate makes it crucial to determine the import value of EVs accurately, reducing the risk of under-declaration and ensuring accurate tax calculations. Setting a minimum CIF value serves as a policy mechanism to mitigate under-declaration and maintain government revenue collection.