The government has stated that incentives for the development of electric vehicle (EV) charging infrastructure will continue, even though these incentives were not specifically mentioned in Budget 2025.

According to the Ministry of Investment, Trade and Industry (MITI), among the incentives are Green Investment Tax Allowance (GITA) programme, which allows charging point operators (CPOs) who meet the tax incentive criteria to receive a 100% tax exemption in the form of an Investment Tax Allowance for five years.

This allowance can be used to offset up to 100% of statutory income for each tax 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 the assessment year 2023 until the assessment year 2032,” MITI said.

The ministry said this in a written reply on the Parliament website on Monday in response to a question from Tan Kok Wai (PH-Cheras) regarding the specific allocations for EV charging infrastructure development in the current budget.

MITI also said the government expects the total number of electric-powered vehicles (xEV) on the road to reach at least 400,000 passenger and commercial vehicles by 2030.

As of 30 September, the total annual sales rate for vehicles, including hybrids, plug-in hybrids, battery electric vehicles (BEVs), and fuel cell electric vehicles (FCEVs), stood at 33,319 units. The overall figure for 2023 was 35,723 units.

Meanwhile, to support the development of EV charging bays (EVCB), the ministry noted that Petronas subsidiary Gentari and Tenaga Nasional Bhd have committed to making investments and had spent approximately 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 that also provide EV charging services to the public.

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