Malaysia will impose stricter requirements on fully imported electric vehicles (EVs) from July 2026, after a four-year exemption period under the AP Francais scheme expired at the end of 2025, the Ministry of Investment, Trade and Industry (MITI) said on Wednesday.
In a statement, MITI said the special exemption for importing Completely Built-Up (CBU) EVs under the AP Francais arrangement ended on Dec 31, 2025, after which the policy framework reverted to existing rules.
However, the ministry said it will allow companies to continue selling remaining stock, including vehicles already in inventory, at ports, and in transit, under the previous exemption conditions until the stock is fully cleared.
From July 1, 2026, all imports of CBU EVs will be subject to two key requirements: a minimum cost, insurance and freight (CIF) value of MYR 200,000 ($50,955), and a revised minimum motor output threshold of 180kW, down from the previous 200kW requirement.
MITI said the adjustment has been communicated to AP Francais license holders through an engagement session held on April 30, 2026.
The ministry said the policy aims to ensure a more structured and balanced framework for EV imports, while supporting the development of the domestic automotive industry.
It added that the government remains committed to maintaining a transparent and consistent policy environment that safeguards both national economic interests and consumer welfare.
Malaysia has been positioning itself as a regional hub for electric vehicle assembly and adoption, with various incentives previously introduced to attract global EV makers and accelerate electrification of the transport sector.
The latest policy shift comes as the country gradually refines its EV market structure, balancing incentives for adoption with longer-term industrial development goals.