Malaysia’s EV Landscape: Where Are We Now?A critical look at current policies, progress, and gaps in the national EV ecosystem

Abstract

As Malaysia positions itself at the forefront of the global green transition, the adoption of Electric Vehicle (EV) has become a cornerstone of its strategy to reduce carbon emissions and foster sustainable growth.  Policies such as the National Automotive Policy (NAP) 2020, the National Energy Policy 2022-2040 (NEP) and the Low Carbon Mobility Blueprint 2021-2023 (LCMB), underpin the nation’s commitment to decarbonisation and its ambition to become a regional leader in energy-efficient vehicles. Malaysia is well positioned to capitalize on the EV mobility wave as it is a mature semiconductor manufacturing hub and a home-grown car industry.  Malaysia as a major Oil and Gas Producer has cheap fuel for its population which is a dampener for EV adoption.  However, the move to remove diesel subsidies will give EVs a boost. EV adoption is popular in places which has a density of charging stations and good post-sale maintenance support.

This paper as such uses secondary data to uncover four policy elements related to enhance EV adoption in Malaysia. Those are :  1) Purchase Incentives and Fiscal Measures - Tax exemptions and  reductions; Road tax exemptions; Individual Income Tax Relief; Incentives for Local Manufacturing ; 2) Development of Charging Infrastructure - Public Charging Network Expansion; Private charging Infrastructure; Standardization and Interoperability; 3) Support for  the EV Industry and Supply Chain - Investment in Local Manufacturing; Technology Transfer and R & D; Skilled Workforce Development; and 4) Addressing Consumer Concerns - Public Awareness Campaigns; Addressing Range Anxiety; Making EVs Affordable. These policy elements need to be addressed in order to enable EVs to account for 15% of the total industry volume (TIV) by 2030 and 80% by 2050, in alignment with the Low Carbon Mobility Blueprint (LCMB) and the National Energy Transition Roadmap (NETR).