Trade News 2 min read

Malaysia Tightens Import Controls on Fully Imported Electric Vehicles

Malaysia’s Ministry of Investment, Trade and Industry (MITI) has announced new import control conditions for fully imported completely built-up (CBU) electric vehicles (EVs), effective 1 July 2026. Under the revised framework, imported CBU EVs must meet two key requirements: a minimum motor power threshold of 180 kilowatts (kW) and above, as well as a minimum cost, insurance, and freight (CIF) value of RM200,000.

The policy adjustment follows the expiry of the temporary special exemption regime for CBU EV imports under the franchise Approved Permit (AP) framework on 31 December 2025. Malaysian authorities stated that the revised measures are intended to restore the existing regulatory framework while supporting balanced development of the domestic automotive sector. MITI also clarified that remaining EV inventory already in stock, at ports, or in transit may continue to be sold under the previous exemption conditions.

From a trade compliance and customs perspective, the development is significant for automotive manufacturers, importers, distributors, and logistics providers operating in the ASEAN region. Companies exporting EVs into Malaysia should immediately reassess product eligibility, customs valuation methodologies, and import licensing arrangements to ensure compliance with the updated thresholds.

The revised conditions may also affect supply chain planning, pricing strategies, and homologation considerations for EV models intended for the Malaysian market. Businesses should review CIF calculation practices carefully, maintain robust supporting documentation, and confirm alignment between commercial invoices, customs declarations, and AP approvals.

More broadly, the move reflects increasing regulatory focus across Asia on balancing EV market liberalisation with industrial policy objectives and domestic automotive ecosystem development. Companies involved in regional EV trade should closely monitor evolving import controls, localization expectations, and sector-specific compliance requirements across ASEAN markets.

Kindly refer to the following news as reported by Bernama, the national news agency in Malaysia:

https://bernama.com/en/news.php//general/sports/target=’_blank’?id=2553653