Is It Worth Buying an EV in Malaysia? The Real Costs Behind the Green Revolution
With petrol prices still subsidised and EV charging infrastructure lagging, are Malaysians ready for electric vehicles? We break down the pros, cons, and future of EV ownership in the country.
In recent years, electric vehicles (EVs) have emerged as a popular alternative to internal combustion engine (ICE) cars, driven by global shifts toward sustainability, innovation, and reducing carbon footprints. In countries like Norway, China, and even Singapore, EV adoption is rising rapidly, backed by supportive policies, robust infrastructure, and high fuel costs. But in Malaysia, the situation is more nuanced. Petrol is heavily subsidised, EV infrastructure remains underdeveloped, and EVs often come with a hefty price tag. This has led many Malaysians to ask a simple but important question: is it worth buying an EV in Malaysia right now?
To answer that, we need to look at the Malaysian context with all its complexities. On paper, EVs seem like the future. They are environmentally cleaner, mechanically simpler, and cheaper to maintain in the long run. The Malaysian government has also made encouraging moves, including tax exemptions for fully electric vehicles, reduced import duties, and zero road tax for EVs until the end of 2025. These measures are clearly designed to nudge consumers toward electrification. Yet, adoption remains slow.
One of the key factors holding back EV adoption in Malaysia is the country's petrol subsidy. As of 2024, RON95 petrol is still priced at RM2.05 per litre, significantly lower than the global average. For many middle-class Malaysians, especially those living outside major urban centres, this makes ICE vehicles more cost-effective in the short term. When petrol is this cheap, the incentive to switch to electric simply isn’t as compelling.
Another hurdle is charging infrastructure. In urban areas like Kuala Lumpur, Petaling Jaya, and Johor Bahru, EV owners can find charging stations with relative ease—though even here, long queues at public chargers are becoming common due to insufficient supply. Outside city centres, the situation is far worse. Range anxiety, the fear of running out of charge before finding the next charger, is a genuine concern. Most residential properties, especially high-rise condos and apartments, are not yet equipped with charging facilities. While companies like Gentari, ChargEV, and Tesla are expanding their charger networks, the pace is still too slow to match the ambitions of a mass-market EV transition.
The financial argument for EVs is also complicated by depreciation. Unlike ICE cars, which have an established resale market, EVs in Malaysia suffer from faster depreciation due to uncertainty around battery life, limited buyer interest, and lack of confidence in long-term servicing. For example, a three-year-old EV can lose as much as 40 to 50 percent of its original value, a figure significantly higher than for most petrol vehicles. This is partially because second-hand buyers are concerned about the cost of battery replacement, which remains prohibitively high. In markets like Europe or the United States, where warranties, trade-ins, and battery certifications are well established, this isn’t as severe a problem. But Malaysia has yet to catch up.
That said, there are real and growing benefits to owning an EV—particularly for urban dwellers with stable access to home or workplace charging. Over time, the savings on petrol and maintenance add up. EVs have fewer moving parts, no oil to change, and fewer brake replacements due to regenerative braking systems. A well-maintained EV can save its owner thousands of ringgit in annual running costs. Additionally, with global oil prices increasingly volatile and pressure mounting on the Malaysian government to reform the petrol subsidy regime, it’s entirely plausible that fuel prices could rise in the medium term. If and when that happens, EVs will become significantly more attractive.
From an environmental standpoint, the argument for EVs is also strong. Malaysia’s power grid is slowly becoming greener, with more investments in solar, hydro, and other renewables. While critics argue that EVs merely shift emissions from tailpipe to power plant, the grid's decarbonisation means that EVs are increasingly cleaner over their lifecycle. For environmentally conscious consumers, this shift matters.
Furthermore, the market is slowly expanding. More affordable EV models are entering Malaysia, including offerings from BYD, Ora, and Chery, which are targeting middle-income buyers. Proton and Perodua have also hinted at launching locally produced EVs by 2025 or 2026, which could dramatically change price dynamics and make EVs more accessible to the masses. Local assembly would also likely mean lower maintenance costs and better after-sales support, further tilting the equation in favour of electric.
Looking ahead, the future of EVs in Malaysia hinges on a few critical developments. First, charging infrastructure must improve—not just in volume, but also in accessibility, speed, and affordability. Second, the government needs to establish a regulatory framework for used EVs, including certified battery inspections, resale guarantees, and more robust warranty structures. Third, educational campaigns are needed to shift public perception around EVs, particularly among those who associate them with high cost and impracticality.
In the meantime, who should consider getting an EV in Malaysia today? The best candidates are urban professionals with predictable commuting patterns, stable income, and access to private charging, whether at home or at work. For these individuals, an EV can already be a smart financial and lifestyle choice. For others, especially those in rural areas or who depend on long-distance driving, the equation is not yet favourable.
So, is it worth getting an EV in Malaysia? The answer depends on who you are, where you live, and how you drive. As a long-term investment in sustainability and innovation, EVs are undoubtedly the future. But in Malaysia’s current economic and infrastructural context, they are still a calculated bet—worth it for some, premature for others. The next few years will be crucial, and those watching from the sidelines today may find themselves ready to plug in sooner than they think.
Kevin Wu is the editor and focuses on curating stories and articles relevant for the modern-day business owner and corporate leaders in the South-east Asia region. More about Kevin Wu.
