Will New Regulations on Fully Imported EV Spur Growth?

 

The Ministry of Investment, Trade and Industry (Miti) has announced that all completely built-up (CBU) EV imports will be subject to two key conditions: a minimum cost, insurance and freight (CIF) value of RM200,000, and a revised minimum motor power requirement of 180 kilowatts (kW) and above, down from the previous 200kW threshold. 

Is setting a higher minimum vehicle value for imported EVs to encourage development and strengthen localisation and domestic EV manufacturing in Malaysia? After over 40 years of operation, Proton's impact on developing a self-sustaining Malaysian automotive vendor ecosystem remains mediocre to poor. Proton did bolster vendor confidence, shifting toward high-tech, localized production (e.g., in Tanjung Malim) and increased RM3.2B in local sourcing in 2025 but all these happened post the Geely partnership.

 

Source: https://en.wikipedia.org

Proton, established in 1983 as Malaysia’s national carmaker, started ahead of China's domestic automotive boom, launching the Proton Saga in 1985. The initial objective for the set up of Proton was for the establishment of a fully competitive, local automotive industry. Since its inception, Proton was protected and had a price advantage that was unfair to the other car manufacturers and importers. That being so, Proton could possibly have felt that it was too strong, too well-placed, too invincible and so became callous in their approach towards long-term marketing. Or for that matter on R&D. 

Proton then drifted off tangent. It did not focus and meet the quality requirements of the market, what the consumers want. The cars it sold had a lot of issues. Realising that they couldn’t do it on their own, they entered a partnership with China's Geely. Geely only started making passenger cars in 1997. 

It has been over 40 years, but Proton has remained a bonsai! It has become common now that if we can’t compete in any industrialisation projects, the government will introduce new regulations to protect the failing project. 

Just take a look at those few big GLC banks and see how they work. Lackadaisical. Yes, they report huge numbers in its profitability, but they are operating in a near `monoplistic’ environment in Malaysia. Open up the banking sector and see how they perform. A service transaction that needs only 10 minutes can take more than an hour! 

Local manufacturers must be proud of the quality of the goods or services that they sell. They need to be committed not only to customer satisfaction but to customer delight. When that happens, the hope for efficient automotive vendor ecosystem that produces world class products will then evolve. And stop this ‘protectionist’ measures for a 40-year-old baby. It is either a bonsai or suffering from “Down Syndrome” (my apologies to those who unfortunately suffer from it). If you want to thrive, you must compete. Ask Geely or BYD. How do they do it? The Chinese government gives them subsidies for R&D and related areas. So, we should support in R&D through a National R&D Fund? 

References:

PMX, do you really believe the new regulations on fully imported EV will spur growth of the local automotive sector? Opinion, FLK, Newswav, 16 May 2026 

Malaysia raises entry bar for imported EVs from July 1, sets RM200,00 minimum price threshold, Syafiqah Salim, theedgemalaysia.com, 6 May 2026