Why did previous EV incentives fail to spur charging infrastructure investment?

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Previous EV Incentives Did Not Spur Charging Infrastructure Investment Due to Insufficient Industry Commitment

The government's previous four-year tax exemption for completely built-up (CBU) electric vehicles (EVs), which resulted in RM3.3 billion in forgone tax revenue, did not adequately stimulate investment in public charging infrastructure. Despite the aim to spur market growth and attract investment, the EV industry players did not deliver the expected level of commitment to developing public charging stations.
Tax Exemptions Focused on Vehicle Sales

The incentives provided by the government, specifically the exemptions on import duty, excise duty, and sales tax for CBU EVs, were primarily aimed at making EVs more affordable and thus boosting their sales and market penetration. This approach focused on the consumer-side demand for electric vehicles. The duration of these specific incentives was four years.
Lack of Industry Investment in Charging Network

Despite the success in increasing EV sales, the anticipated investment from EV industry players into building a comprehensive public charging network did not materialise. After the initial four-year period of these exemptions, the government observed that the industry's contribution to public charging infrastructure development was insufficient to meet the growing needs of EV users.
Challenges in Public Charging Infrastructure Development

The lack of investment in public charging infrastructure is identified as the primary challenge hindering wider EV adoption in Malaysia. This is particularly acute for individuals living in high-rise buildings, such as apartments and People's Housing Programme (PPR) projects, who lack the ability to install private charging facilities at home. A robust public charging network is consequently deemed essential for the future of mobility.

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Why did previous EV incentives fail to spur charging infrastructure investment?

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