Announced on May 6, 2026, Malaysia’s imports of fully assembled electric vehicles (CBU EVs) under the Franchise AP scheme will be subject to 2 main conditions from July 1, including a minimum Cost, Insurance and Freight (CIF) value of RM200,000 and a revised motor output threshold of 180 kW, down from 200 kW.
The Min

Reported on April 25, 2026, the Malaysian government is reviewing a possible reduction in road tax for diesel vehicles as a way to offset higher fuel costs, according to the Prime Minister. The Transport Ministry has been tasked with developing implementation details and assessing policy options.
The proposal comes a

Reported on April 17, 2026, Malaysia’s prime minister said concerns over tight regulatory conditions for EV investors will be reviewed with the Ministry of Investment, Trade and Industry (MITI). The issue follows calls from a Perak state official for a policy review, warning that overly restrictive requirements could

Reported on April 3, 2026, Malaysia’s automotive industry players expressed support for the Ministry of Investment, Trade and Industry’s (MITI) clarification on CKD-related policies following the BYD CKD issue, reaffirming a development-oriented approach to investment, localization and long-term industry sustainabili

Reported on March 31, 2026, the Ministry of Investment, Trade and Industry (MITI) has issued a statement clarifying its policies on foreign automotive investment and BYD’s CKD assembly plans in Malaysia.
Earlier reports suggested that MITI had imposed restrictive conditions on BYD’s Tanjung Malim plant, including a r

Announced on January 29, 2026, the Malaysian government has rolled out Matching Grant Programme for the vehicle replacement aimed at phasing out cars aged 20 years and older while encouraging the shift toward newer, safer, and more environmentally friendly vehicles.
Consistent with the government’s objective, Proton

Reported on December 26, 2025, Malaysia’s Finance Ministry revealed that the scheduled January 2026 implementation of the open market value (OMV) excise duty revision (PU(A) 402/2019, which sets excise values for locally produced goods) has been postponed again.
The new start date is now June 30, 2026, according to a

Reported on November 14, 2025, Malaysia’s government plans to launch the essential list and localization incentives aimed at boosting both the local automotive supply chain and export potential, according to the Minister of Investment, Trade, and Industry (MITI).
To grow the EV sector, the current fully-imported (CBU

Reported on November 13, 2025, CIMB Securities Sdn Bhd noted that HI Mobility Bhd stands to gain from Malaysia’s electric bus program, which is backed by the Finance Ministry’s MYR 1.9 billion allocation for EV and diesel bus enhancements.
The company is expanding into commercial vehicle assembly and distribution thr

Reported on November 7, 2025, Malaysia’s authorities are actively engaging with automotive industry stakeholders to evaluate the potential effects of the updated excise tax on locally-assembled (CKD) vehicles. The deputy finance minister confirmed that the government is gathering relevant data and exploring measures

U.S. President Donald Trump arrived in Japan on October 27, the second stop on his Asia tour that will culminate a few days later with a high-stakes meeting with Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation Summit in Gyeongju, South Korea.
Trump visited with Japan's Emperor N

Reported on October 13, 2025, the Malaysian Automotive Association (MAA) highlighted the absence of an extension for import and excise duty exemptions on fully imported (CBU) electric vehicles (EVs) in Budget 2026. While supporting the government’s focus on locally assembled (CKD) EVs, MAA urged continued incentives

Reported on October 13, 2025, the Malaysian Automotive Association (MAA) expressed support for the government’s announcement on the amendment of the Consumer Protection Act 1999 to include a lemon law.
The move follows a six-month feasibility study in 2024, which highlighted the need for a dedicated legal framework t

Reported on September 9, 2025, the Malaysian Digital Minister is collaborating with the Transport Ministry to draft legislation for autonomous vehicles (AVs), aiming to establish a legal framework as driverless technology advances globally. 
Initial discussions on an “autonomous vehicle network” emphasize refining sa

Announced on August 1, 2025, Malaysia’s exports to the U.S. will be subject to a reduced 19% tariff, effective at 12:01 a.m. EDT on August 7. The reduction follows a July 31 executive order by President Trump that amended tariff rates under the U.S. reciprocal trade framework for select countries.
The move marks a re

Reported on July 8, 2025, beginning August 1, the U.S. will impose a 25% tariff on Malaysian-made goods as part of a broader policy targeting countries with trade imbalances. This follows an Executive Order signed by President Trump on July 7, which postpones the expiration of certain tariff rates from July 9 to Augu

On July 2, the Minister of Enterprise and Made in Italy met with the Malaysian Minister of Investment, Trade and Industry. They discussed opportunities for collaboration in the rare earth sector. They also shared their interest in strengthening cooperation in the field of applied research in semiconductor design, rec

Announced on May 22, 2025, Neways Electronics officially inaugurated a new state-of-the-art manufacturing facility in Selangor, Malaysia, specializing in advanced semiconductor assemblies. Industry leader ASML was the facility’s first customer. 
The investment is expected to boost Malaysia’s semiconductor ecosystem t

Reported on April 6, 2025, Proton’s Deputy CEO highlighted that the ongoing price war among Chinese car brands is negatively impacting Malaysia’s automotive ecosystem — from OEMs with manufacturing plants to local vendors and distributors who have traditionally supplied vehicle components and parts.
This situation ha

Reported on March 13, 2025, Penang state of Malaysia is expected to have 600 units of Electric Vehicle Charging Bay (EVCB) put into operation by 2025. 
According to the State Local Government, Town and Country Planning Committee chairman, 300 EVCBs would be in the Penang City Council (MBPP) and the remaining in the S