Refrain from protectionism, Chow tells govt on EV policy

Penang chief minister Chow Kon Yeow advised the federal government against adopting a protectionist approach in its electric vehicle (EV) policy. He expressed support for localising Malaysia's EV ecosystem, emphasising the need for more local firms to join the supply chain, increased technology transfer, and the creation of high-value jobs for Malaysians.

However, Chow cautioned that the government must maintain investor confidence and refrain from leaning towards protectionism. He highlighted concerns about the recent communication of the CBU EV policies and the potential for excessive concentration in the sub-RM100,000 EV market, stating that these issues should be addressed seriously.

Chow stressed that while Malaysia requires investment, technology, and competition, consumers also require diverse options. As Malaysia competes with other regional countries for EV investment, its policies must instil confidence in companies to invest and thrive in the nation. Chow urged the Ministry of Investment, Trade, and Industry to consider these concerns and enhance the communication and execution of EV policies.

He advocated for a balanced approach, ensuring transparent communication and predictable implementation to instil investor and business confidence in Malaysia.

In June, the ministry introduced two new conditions for the import of CBU EVs following the conclusion of a four-year special exemption on December 31, 2025. From July 1, 2026, all imported CBU EVs will be required to have a minimum cost, insurance, and freight value of RM200,000, and the minimum motor power threshold will be lowered to 180kW from the previous 200kW.

The ministry defended its revised policy, asserting that it aligns with the National Automotive Policy's objectives of managing EV model entries into the market while fostering a competitive and sustainable local automotive industry.