Infrastructure for EVs is slowly growing in Malaysia — Filepic/The Star
AS I reflect on the transformative year of 2024, I can’t help but feel an immense sense of pride and optimism for Malaysia’s automotive industry. It has been a thrilling journey filled with significant advancements in electric vehicles (EVs), green technology, and local manufacturing.
Together, we are confidently positioning ourselves as a regional leader, perfectly aligning with the goals outlined in the National Automotive Policy 2020 or NAP 2020.
I still remember the excitement that filled the room at Menara MITI during the announcement of Budget 2024.
The introduction of vital incentives – like road tax exemptions for EVs and reduced import duties for EV-related components – sparked a wave of enthusiasm.
It’s heartening to know that these efforts are crucial for our long-term vision of reducing our carbon footprint and achieving the ambitious target of 20% EVs on the road by 2030.
One day stands out in my memory.
It was during Malaysia Autoshow 2024.
As I strolled through the event, a young student approached me, eyes wide with excitement, and shared how inspired he was by the electric cars.
He dreamt of becoming an automotive engineer, contributing to Malaysia’s green future. His passion reminded me of a quote from the movie Field of Dreams: “If you build it, he will come.” This young man represented the future we are building together, a future where the dreams of sustainable transportation can indeed become a reality.
Witnessing the government’s dedication to enhancing our EV infrastructure has been incredibly fulfilling. Companies like Tenaga Nasional Bhd
, Gentari, and Tesla Malaysia have pledged over RM170mil to establish 180 EV charging stations across the nation. This commitment will ensure that charging facilities are conveniently accessible to our growing community of EV users.
I often travel from Kuala Lumpur to Penang, and I always make a stop at the Tapah R&R to charge my EV. On one of these journeys, I was pleasantly surprised to see families and young professionals gathered around, sharing their experiences and excitement about EVs.
It’s moments like these that remind me why our work is so vital.
The tax measures introduced this year have also been encouraging. The extension of personal income tax relief for EV charging equipment and services, along with a generous RM2,500 rebate available through 2027, is making EV ownership more attainable. The tax exemptions for EV rentals encourage businesses and individuals to explore leasing as a practical option to experience EV driving.
In our efforts to boost the uptake of electric motorcycles, MARii launched a new scheme, Skim Galakan Penggunaan Motosikal Elektrik or MARiiCas.
The RM2,400 rebate for purchasing electric two-wheelers has led to a remarkable surge in sales. Hearing from manufacturers that they recorded the highest sales in the first half of 2024 compared with the last five years – reflects a growing openness among Malaysians to embrace EVs as their primary mode of transportation.
These measures have significantly contributed to bringing EV ownership within reach for many, driving us toward our goal of promoting green mobility.
The incentives for local EV manufacturing have strengthened our domestic production capabilities and positioned Malaysia as a promising player in the global EV market.
The statistics paint an inspiring picture: in the first half of 2024, Malaysia saw sales of 6,617 full-EVs, which is an incredible 112% increase – more than doubling the sales figure compared with the same period last year.
To put this in perspective, the total sales of full EVs for all of 2023 were just 13,257 units.
Remarkably, we’ve already surpassed 80% of that figure in just six months, marking an exciting new chapter in our EV journey. In fact, we’ve sold more than three times the total number of full EVs from all of 2022.
The total industry volume (TIV) for vehicles during the first half of 2024 have reached 390,296 units, with full EVs making up 1.69% of this total.
When we include hybrid vehicles, the combined sales of full EVs and hybrids hit 22,501 units, accounting for 5.76% of the overall TIV.
Thanks to government initiatives, owning an EV has become more accessible, and local production is ramping up to meet this rising demand. Malaysia is evolving into a key player in the global EV landscape.
Through the New Industrial Master Plan 2030 (NIMP 2030), we’re focusing on developing the entire EV value chain, including creating affordable EV options. This effort aligns with our mission toward net-zero emissions while opening exciting opportunities across various segments of the EV sector.
As announced by Tengku Datuk Seri Zafrul Abdul Aziz, our MITI Minister, Perodua is set to launch its first EV, designed to be affordable and potentially priced under RM100,000, with mass production expected to start by the end of 2025.
As I gaze into the future, I’m filled with excitement about what lies ahead in 2025. The solid foundation we’ve laid in 2024 sets the stage for even greater growth. With more electric vehicles on the road, a stronger local manufacturing base, and continued foreign investments, the Malaysian automotive industry is truly on the rise.
Yet, we must remain vigilant. The road ahead will have its challenges, and we must address them head-on. To maintain our momentum, the government will need to extend incentives for hybrid and electric vehicles (xEVs), reduce import duties on EV components, and provide support for local manufacturers. These measures will ensure that Malaysia remains competitive as global EV sales are projected to surpass 38 million by 2030.
Infrastructure development will remain a key focus. While we’ve made commendable strides with charging stations, Budget 2025 must allocate more resources to expedite the rollout, particularly in rural areas and along major highways. This will ensure that all Malaysians have equitable access to charging facilities and hence the benefits of electric mobility.
Local supplier development is another priority. As our automotive industry transitions to electric mobility, we must equip local vendors to meet the demand for xEV components, including batteries and electronic systems. This will require targeted training, funding, and technological support to strengthen Malaysia’s supply chain.
Moreover, with the rise of EVs and advanced automotive technologies, an estimated 29,000 new jobs will be created by 2030. The 2025 automotive focus should be introducing targeted training programs, developed in collaboration with universities and industry players, to ensure our workforce is prepared with the necessary skills for the green automotive industry.
Research and development (R&D) will be the heartbeat of our innovation. Continued funding for R&D in electric and autonomous vehicle technologies will empower our local companies to compete on the global stage, particularly in critical areas like battery recycling and smart grid integration.
As we embrace an electrified future, I am incredibly proud of the strides we’ve made in 2024, positioning Malaysia’s automotive industry at the forefront of the EV revolution. The upcoming 2025 Budget will be crucial in sustaining this momentum, enhancing incentives, expanding infrastructure, and investing in workforce development and innovation. Notably, Malaysia has now surpassed Thailand to become South-East Asia’s second-largest automotive market, trailing behind to only Indonesia. This year, we aspire to challenge Indonesia or at least maintain a strong number two in the region.
As I often think of in moments like this, “It doesn’t matter if you win by an inch or a mile; winning’s winning,” as Dominic Toretto (acted by Vin Diesel in Fast & Furious film) taught us. And together, we’re not just taking steps—we’re racing toward a greener, more sustainable future for Malaysia’s automotive industry.
Azrul Reza Aziz is the CEO of Malaysia Automotive Robotics & IoT Institute. The views expressed here are the writer’s own.
