Refrain from protectionism, Chow tells govt on EV policy

 Penang’s chief minister says Putrajaya must ensure sound policies, clear communication, and predictable implementation to maintain investor and business confidence.

Penang chief minister Chow Kon Yeow said he supports localising the country’s EV ecosystem, as he wants more local firms to enter the supply chain, increased technology transfer, and high-value jobs for Malaysians.

BATU KAWAN:

Penang chief minister Chow Kon Yeow today cautioned the federal government against adopting a protectionist stance on its policy of importing completely built-up electric vehicles (CBU EVs).

Chow said he supports localising the country’s EV ecosystem, as he wants more local firms to enter the EV supply chain, as well as more technology transfer and high-value jobs for Malaysians.

“But we must maintain investor confidence and refrain from leaning towards protectionism,” he said at the signing ceremony on the partnership on renewable energy initiatives between McDonald’s Malaysia and Tenaga Nasional Bhd here today.

“Recently, concerns have been raised about how the latest CBU EV policies have been communicated, as well as the risk of excessive concentration in the sub-RM100,000 EV market. These concerns should be taken seriously.”

Chow said that while Malaysia needs investment, technology, and competition, consumers also need choices.

As Malaysia competes with other countries in the region for EV investment, he said, its policies must also give companies confidence to invest and grow here.

“I hope Miti (the investment, trade and industry ministry) will take note of these concerns and continue to improve the way these policies are communicated and implemented.

“We need to strike a delicate balance consistent with sound policymaking, where clear communication and predictable implementation give investors and businesses confidence in Malaysia,” he said.

In June, the ministry confirmed two new conditions for the import of CBU EVs following the end of a four-year special exemption on Dec 31, 2025.

It said that from July 1, 2026, all imported CBU EVs would be subject to a minimum cost, insurance and freight value of RM200,000. The second requirement is that the minimum motor power threshold has been lowered to 180kW from the previous 200kW.

The ministry has defended its revised policy, saying that the measure is in line with the objectives of the National Automotive Policy, which aims to manage the entry of EV models into the market while ensuring the development of a competitive and sustainable local automotive industry. - FMT