The Malaysian government announced plans to encourage transport operators to adopt electric vehicle (EV) trucks through incentives such as tax exemptions. Transport Minister Anthony Loke outlined the policy during the Malaysia Commercial Vehicle Expo 2026 on May 14, aiming to reduce the country's heavy reliance on diesel subsidies, which cost about RM2.5 billion per month [1, 2].
Currently, EV truck adoption in Malaysia is very low, with fewer than 10 units operating in pilot projects nationwide. One major barrier is the high upfront cost, as EV trucks are two to three times more expensive than conventional diesel trucks, limiting uptake among fleet owners [1, 2].
Loke acknowledged the need for a comprehensive EV ecosystem, including charging infrastructure, especially for long-distance interstate trucking. He noted that while range limitations of 300–400 km per charge may work within urban areas like Klang Valley, cross-state routes spanning 800–900 km pose a significant challenge [1].
The government favors a "carrot" approach, focusing on incentives rather than mandates to spur adoption. Loke said, "This includes incentive mechanisms such as tax exemptions to help reduce the purchase cost of EV trucks." He stressed the importance of enhancing both safety and fuel efficiency, saying, "Safety and profitability go hand in hand. They are not mutually exclusive" [1, 2].
Electric trucks form a key part of Malaysia’s plan to meet its net-zero emissions target by 2050. Loke said, "This is something which I think is necessary, not just because we have to achieve our net-zero target by 2050, but also in terms of fuel efficiency and costs to the government" [1].
The National Electric Vehicle Task Force is scheduled to meet in mid-May to discuss specific incentives and further plans for accelerating EV truck adoption [1, 2].
