Malaysia sets RM200,000 CIF threshold for EV imports as tax incentives expire

The new cap targets premium models, reshaping the competitive landscape for Chinese EV makers in Southeast Asia as subsidies wind down.

By Handelsavisen Newsroom · Automated 2026-07-08 03:49 UTC · 1 min read

Malaysia has introduced a new customs valuation threshold for electric vehicle imports, capping tax benefits at a CIF value of RM200,000.

The policy revision takes effect immediately following the expiration of previous tax incentives for Completely Built-Up (CBU) EVs, marking a significant shift in the country's approach to EV adoption.

The Ministry of International Trade and Industry (MITI) confirmed the adjustment, which effectively removes preferential treatment for premium EV models priced above the threshold.

This move is expected to increase the landed cost of high-end imports, potentially dampening demand for luxury electric vehicles in the Malaysian market while preserving incentives for more affordable models.

The policy change arrives as global EV markets face increasing trade friction.

While Canada recently announced plans to import Chinese-made EVs at a reduced tariff rate, Malaysia's move signals a tightening of import conditions for premium segments.