Malaysia risks hurting EV push with ‘poorly timed’ levy as foreign investment stalls

Malaysia risks hurting EV push with ‘poorly timed’ levy as foreign investment stallsObservers warn Malaysia’s appeal as a manufacturing base could weaken amid regional competition for EV investment3-MIN READ3-MIN0ListenPublished: 5:30pm, 5 Aug 2026Updated: 5:31pm, 5 Aug 2026Malaysia is considering a levy on Electric Vehicles (EVs) to fund charging infrastructure, even as export and pricing conditions on high-volume foreign assembly projects have left Chinese giant BYD’s planned 1.3 billion ringgit (US$318 million) factory in limbo.Economists and industry experts warn the two policy moves could raise ownership costs while weakening Malaysia’s appeal as a manufacturing base at a time when regional rivals are competing for EV investment.EV sales more than doubled to 30,848 units in 2025, according to the Malaysian Automotive Association, while government data showed cumulative electric-car registrations had reached 115,349 by the end of June 2026.Select VoiceSelect Speed0.8x0.9x1.0x1.1x1.2x1.5x1.75x00:0000:001.00x