MALAYSIA: Malaysia’s Ministry of International Trade and Industry (MITI) has introduced new regulations for fully imported (CBU EVs), effective July 1, 2026. All CBU EVs must now have a minimum CIF value of RM200,000 (S$64,800) and a power output of 180 kW (245 PS). This effectively raises retail prices to at least RM300,000 (S$97,230), pushing mid‑range EVs out of the market and leaving only premium options. 

Popular models like the BYD Atto 3, MG4, and Honda e:N1 will be barred, while Proton’s eMas 7 and other CKD EVs gain a competitive edge. The move is seen as protectionist, promoting local assembly and shielding Proton.

Social media users are voicing strong dissatisfaction with the new regulation. Many highlight the irony that just a few years ago, the government was actively championing EV adoption, yet today, the policy shift seems to undermine that push. Public frustration is mounting, amplified by the ongoing Iran war and the daily headlines about Malaysia’s petrol subsidies. 

One user on X sarcastically remarked that Malaysians only have themselves to blame, suggesting that eating out and buying iPhones explain why they cannot afford a RM300,000 (S$97,300) foreign EV. In reality, cutting back on such expenses would barely make a difference. The comparison is stark: a Mercedes C200 in Malaysia costs around RM249,888 (S$80,963) — at least RM50,000 (S$16,200) cheaper than the new minimum threshold for imported EVs.

Furthermore, another argued that average Malaysians are being denied the benefits of a free trade market. He pointed out that foreign competitors have made significant advancements in EV technology, often pricing their models lower internationally compared to Malaysian manufacturers. By restricting imports, he claimed, the ministry is effectively holding back affordable and superior EVs from reaching consumers.

Not all reactions are negative. Some users welcome the arrival of more expensive EVs in Malaysia, seeing it as a step toward raising standards. One commented that premium EVs from China will surpass what conventional luxury carmakers currently offer. He added that maintenance costs for EVs are generally lower than those for standard petrol vehicles, making them more practical in the long run despite higher upfront prices. 

Fifty years ago, protecting national companies was considered paramount. Yet from a Southeast Asian perspective today, many argue that such protectionist policies risk stifling innovation while imposing high costs on consumers. 

Social media users reflect this sentiment, noting that when governments prioritise shielding local manufacturers over open competition, the public often loses access to affordable and advanced technologies.

This article (Malaysia’s MITI placing effective minimum price for foreign EVs at RM300,000) first appeared on The Independent Singapore News.