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 Investment, Trade and Industry Ministry (MITI) said among the incentives are Green Investment Tax Allowance programme whereby charging point operators (CPOs) who meet the tax incentive criteria can receive a 100% 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% of statutory income for each assessment year.
"Addditionally, incentives in the form of income tax exemptions are also being offered to companies manufacturing EV charging equipment in the form of a full income tax exemption on statutory income starting from the assessment year 2023 until the assessment year 2032," MITI said in a response to a question from Cheras MP Tan Kok Wai regarding the specific allocations for the development of EV charging infrastructure in the current budget.
The ministry added that the government expects the total number of electric-powered vehicles (xEV) on the road to reach at least 400,000 passenger and commercial vehicles by 2030.
As of Sept 30, 2024, the total annual sales for vehicles, including hybrid, plug-in hybrid, battery electric vehicles and fuel cell electric vehicles, amounted to 33,319 units. For the whole of 2023, the sales rate was 4.12%, or 35,723 units.
Meanwhile, in supporting the development of the EV charging bay (EVCB), the ministry said Gentari Sdn Bhd and Tenaga Nasional Bhd have committed to making investments and had spent around RM76 million up to June 2024.
With the significant financial involvement of both companies, more EVCBs are expected to be built nationwide, supported by other CPOs that also provide EV charging services to the public.
"This positive development has helped boost the confidence of EV enthusiasts in purchasing and using these vehicles," MITI said, adding that currently, there are about 30 CPOs operating in the local market.
