Electric vehicles (EVs) in Malaysia are gaining more attention and interest from the public. However, the electric vehicle’s exposure, awareness, and sales are still low compared to other countries. In this review, the challenges associated with implementing the electric vehicle culture in Malaysia are thoroughly reviewed, including the obstacles that the Malaysian government, policymakers, EV manufacturers, and EV users face in terms of EV cost, travel demand, charging station availability, impact on the power grid, and battery capacity. Then, all the identified challenges have been addressed by considering the user behavior, travel demand, socio-economical culture of Malaysia, current policies taken by the government of Malaysia, and the psychological outlook of Malaysians towards EV adoption. Moreover, potential suggestions have been proposed that the government of Malaysia may adopt during policy planning and when seeking to provide incentives to the users. Finally, a concrete conclusion has been drawn by disseminating the vision about the future of EVs in Malaysia. The proposed review of the technologies, challenges, prospects, and potential solutions associated with EV adoption in Malaysia can provide a base for proper strategic policy and help policymakers frame strategies to achieve the targets. This review could help achieve sustainable EV transport, and the successful implementation of Malaysian National Automotive Plan 2020, with the goal of adopting next-generation green vehicles.