The Ministry of Investment, Trade And Industry (MITI) is constantly reviewing policies to ensure the country’s EV ecosystem is holistic and fully supported to attract high-level investments.
The ministry and the government look forward to welcoming more multinational EV, NxGV and RE investors to Malaysia to become growth partners in developing a strong Malaysian EV supply chain to meet the needs of the regional and global market.
Speaking at the inaugural EMobility Asia 2023 trade exhibition and conference in Kuala Lumpur today (Nov 22), MITI Minister Tengku Zafrul Abdul Aziz said on top of the current initiatives and support from the Government, Budget 2024 also offers a number of fresh initiatives that are expected to further boost EV adoption, including tax incentives, rebates, charging infrastructure support and use of EVs in official government vehicle fleet.
He added, to that end, we also hope to collaborate with our neighbours in ASEAN – whether they are from Thailand, Vietnam, Singapore, the Philippines or Indonesia – to complement each other’s strengths so we can capitalise on supply chains that have shifted directly on our (ASEAN) doorstep.
“There are remarkable opportunities to work together to develop new vehicles, as well as battery and other innovative technologies to create a sustainable regional EV supply chain. I am confident that by creating this productive synergy, ASEAN can truly ramp up its position as the world’s new manufacturing powerhouse,” he said.
Malaysia’s EV Pathway: Policy Direction & Execution
Tengku Zafrul said the ASEAN EV market was valued at nearly USD500 million in 2021 and is projected to reach USD2.7 billion by 2027, with a compounded annual growth rate (CAGR) of approximately 33% during the period from 2022 to 2027.
The Government is determined to capture a good slice of this pie and is fully committed to supporting a robust EV ecosystem in the country and make green mobility part of mainstream transportation through the National EV Steering Committee (NEVSC) to holistically strategise and implement the development of EVs and its nationwide ecosystem.
“In getting the fundamentals right on our Next Generation Vehicles (NxGV) ecosystem, we are diligently building the necessary infrastructure to achieve our target of having EVs and hybrids account for 20% of new car sales by 2030; 50% by 2040 and 80% by 2050 (Mordor Intelligence).”
Tengku Zafrul explained with EVs, the top consumer concern is charging infrastructure, which contributes to range anxiety. Owners must be able to charge any form of EV quickly, easily and reliably in an urban or rural setting.
“In solving this issue, we are determined to ramp up Malaysia’s charging infrastructure to have 10,000 public charging stations by 2025 in strategic, accessible locations. Hence, the NEVSC has also focused on speedy approvals for charge point operators (CPOs) to install the critical infrastructure required, to enable the provision of tens of thousands of standardised, reliable connections nationwide.
The government recognises that the future of e-mobility and related wins for customers and the environment sit squarely within a collaborative cross-ministry and cross-industry partnership.
In the past year alone, Tengku Zafrul said he launched or had witnessed the debut of Malaysia’s first charger hyperpower DC fast charging hub4 ; at least 5 different brands of EVs to the Malaysian market5 ; the first battery energy 4 June 2023, Yinson-PLUS 5 BYD Atto 3, ORA Good Cat, Chery, BMW iX, Mercedes EQ, SMART #1 storage system; the first electric heavy-duty prime mover for the Malaysian and Southeast Asian markets; and even electric biker, including those with battery-swapping convenience, among others.
And today, he was witness at MOU exchanges involving local and foreign players for EV bikes, a charging point operator that plans to set up 200 charging stations in Malaysia and an Internet of Things (IoT) services provider.
Renewable Energy Policy, Strong E&E Industry: Lynchpins To Creating A Robust Ev Industry
Tengku Zafrul said it’s clear that Malaysia’s ecosystem is well and truly charging ahead for the EV and NxGV industry to thrive, facilitated by the Government’s strong policy push. But we still have a long way to go to ensure a robust EV ecosystem, such as in developing a greener grid, and the related power distribution networks.
Malaysia will require an estimated RM637 billion in new investments until 2050 in its transition to renewable energy (RE). This is where both the NETR and NIMP2030 are also actively seeking RE investors to help the greening of our power grids.
The government has also established a US$430 million seed fund for green energy projects via NETR. Thus far, Malaysia’s current renewable energy (RE) capacity level is at 25%, inching closer to the country’s target of 31% RE share in the national installed capacity mix by 2025. And apart from established RE companies, the nation has attracted the likes of globally renowned MASDAR from the UAE to invest in RE in Malaysia.
Tengku Zafrul drew reference to a normal internal combustion engine car typically uses 1,400-1,500 semiconductors, whereas an EV car needs at least 3,000 chips, which is double that of an ICE car.
Today, Malaysia accounts for 7% of global semiconductor trade and 13% of global chip testing and packaging with Malaysia becoming a highly attractive destination in the region for all EV investors because of all these established existing ecosystem advantages that are highly conducive for the development of EVs and its related components.
“All these points are the compelling factors for big names such as Tesla to announce its entry into the country, joining global automakers, like Geely, Chery and BYD from China, Hyundai from South Korea, as well as Mercedes Benz and BMW from Europe, that are already in the Malaysian market.
“These global brands make the Malaysian electric mobility industry a high-growth, highly exciting industry to be in, while also ticking all the right boxes on our sustainability agenda, as well as green manufacturing and economic opportunities. Most importantly, the wide range of new mobility solutions can open up technology transfer and innovation for the SMEs, as well as higher-paying jobs for Malaysians,” he added.
EMobility Asia (EMA) 2023 was organised by Derrisen Sdn Bhd and its strategic partners, the Malaysia Automotive, Robotics & IoT Institute (MARii) as well as Electric Vehicle Association of Malaysia (EVAM), Present were key executives of the Global EV Association Network, the Asian Federation of Electric Vehicle Associations, and national EV associations of Singapore, Indonesia, Philippines, Thailand, who have all come forward as Supporting Partners of EMA.
