Malaysia has always had a complicated relationship with protectionism.
We want Malaysian businesses to stand a fighting chance against giant foreign corporations with deeper pockets and near-unlimited scale and industrial capacity.
On the other hand, Malaysians are also tired of paying more.
- More for cars.
- More for goods.
- More for inefficiency.
The recent MITI ruling on completely built-up (CBU) EV imports brought the conversation back into public focus. Starting July 1, 2026, imported EVs must meet a minimum CIF value of RM200,000 and at least 180kW of motor power.
In simpler terms, lower-priced mass-market CBU EVs now face a much higher barrier to entry, a little too high in our view.
now face a much higher barrier to entry. A little too high in our view.
Now, supporters say the move is necessary and to be fair, their concerns are valid.
China’s EV ecosystem is operating on an entirely different scale. Their manufacturers move aggressively, price aggressively, and expand aggressively.
If Malaysia fully opens the floodgates overnight, local automotive players may genuinely struggle to survive the impact. It’s the same reason why the EU has applied additional duties on China-made EV imports since 2024, and the US has raised Section 301 tariffs on Chinese EVs to 100% in 2024.
Proton and Perodua are not merely brands to many Malaysians. They represent jobs, suppliers, factories, engineers and entire ecosystems.
Malaysia’s automotive market has long operated behind one of the region’s heaviest tax structures.
- Imported cars can be subjected to layers of import duty, excise duty, and sales tax that dramatically inflate final prices.
- Excise duties alone can range from 75% to 105% for passenger vehicles, with import duties reaching up to 30% for certain CBU models
And who else to tanggung the cost than the rakyat?
Speaking from a PR Agency who had worked with corporates, SMES and other agencies, we understand the desire to protect local industries and livelihoods, especially in sectors tied closely to jobs, national industry, and public sentiment.
Yet let us be fair in this, because this conversation is no longer limited to cars.
Malaysia’s F&B landscape has already felt the wave of aggressive foreign expansion. Chains like Mixue exploded across the country almost overnight.
Whether people love it or hate it, Mixue demonstrated how quickly a low-cost, highly scalable foreign brand can dominate local foot traffic and capture the hearts of Malaysians with lemonade and ice cream.
Now we don’t want to single out China here.
In the 1980s it was against Japan and their car dominance, Nissan, Toyota, Honda and Mitsubishis are all and still are, household names here. Even Perodua uses the Daihatsu engine after working with them.
European marques such as BMW and Mercedes-Benz often land here, with prices much higher prices than they do elsewhere.
Yet ironically, even Proton now relies heavily on Chinese partnership and technology through Geely’s 49.9% stake.
Pushing For EV Adoption but also… Punishing us for it?
Over the years, Malaysia has been actively positioning itself as a future-ready, sustainability-focused economy.
Every other week, we hear announcements about:
- Biodiesel initiatives
- Solar energy adoption
- Green infrastructure
- EV incentives
- Low-carbon roadmaps
- Government-linked EV fleet transitions
On paper, it sounds impressive, very canggih.
The messaging suggests Malaysia is serious about accelerating EV adoption and building a greener transport ecosystem.
But then comes the contradiction.
- Jan 1 2022: Malaysia opened a tax-exemption window for CBU EVs
- Jan 1 2026: The duty-free era ends. CBU tax exemptions ended after Dec 31 2025
- July 1, 2026: MITI adds a RM200k CIF + 180kW floor.
Together, the tell buyers “EVs are welcome, but only at a price:.
You cannot spend years promoting EV adoption, only to slap a RM200,000 minimum threshold on imported EVs and expect middle-class Malaysians to simply “make do” with whatever limited affordable options remain.
Because realistically, who can afford the imported premium EVs under the current structure?
Mostly upper-income groups driving Teslas.
The T20 crowd living in places like Mont Kiara, where landed homes, condo charging infrastructure, and private charging access are already available.
Meanwhile, many ordinary Malaysians are still figuring out:
- Where to charge EVs while on the road
- If apartment charging is feasible
- Is EV ownership realistically affordable
- The battery replacement costs
Malaysia cannot claim to champion EV adoption while simultaneously restricting access to some of the world’s most affordable and technologically aggressive EV manufacturers.
And whether people like admitting it or not, China is currently leading much of the global EV conversation.
From battery ecosystems to manufacturing scale, charging technology, and pricing strategies, Chinese EV makers are moving faster than much of the world.
In fact, one could argue that Chinese EV competition may be exactly what pushes Malaysia’s automotive ecosystem to innovate faster.
Because without meaningful competition, industries can become too comfortable.
The concern of the local automotive ecosystem wiped out overnight by influx of cheaper imports is always valid, we would never deny that.
But protection should be a bridge toward competitiveness, not a permanent shield against it. Eventually, industries cannot survive forever behind taxes, subsidies, and barriers alone.
At some point, they must be strong enough to compete on quality, innovation and pricing, chosen not for patriotism or sense of loyalty, but on affordability, technology and safety.
Our policies should prepare local industries for the future, or at the very least, buy time before the next EV wave arrives.
The views expressed in this editorial are those of PRESS and its writers, based on current public discussions, economic observations, and industry trends. This article is intended purely for commentary and discussion purposes.
