The government will continue to provide incentives for the development of EV charging infrastructure, even though these incentives were not specifically mentioned in Budget 2025, Bernama reports.

According to the investment, trade and industry ministry (MITI), a Green Investment Tax Allowance (GITA) programme gives charging point operators (CPO) who meet the tax incentive criteria a 100% tax exemption in the form of an investment tax allowance for a period of five years, which can be used to offset up to 100% of statutory income for each assessment year.

“In addition, 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 from assessment years 2023-2032,” MITI said.

The ministry was replying in writing on the parliament website yesterday to Cheras MP Tan Kok Wai’s question on the specific allocations for the development of EV charging infrastructure in the current budget.

MITI also said the government expects at least 400,000 passenger and commercial xEVs (encompassing hybrid, plug-in hybrid, battery-electric and fuel cell-electric vehicles) on the roads by 2030. The figure is 33,319 units as of September 30 this year; for the whole of 2023 it was 35,723 units.

Meanwhile, in supporting the development of the EV Charging Bay (EVCB), the ministry said that Petronas subsidiary Gentari and Tenaga Nasional have committed to making investments and have spent around RM76 million up to June 2024.

With the significant financial involvement of both companies, more EVCBs are expected to be built across Malaysia, supported by other CPOs (there are currently 30 in total) that also provide EV charging services.

“This positive development has helped boost the confidence of EV enthusiasts in purchasing and using these vehicles,” said MITI.