Categories: EconomyNews

Malaysia gears up for EV revolution

The govt has made a firm commitment to strategically develop the automotive industry, particularly the EV industry, as part of its GHG target by 2050


THE Asean electric vehicle (EV) market is forecasted to grow to US$2.7 billion (RM11.77 billion) by 2027, from nearly US$500 million in 2021, with a compound annual growth rate of almost 33% for the 2022-2027 period.

International Trade and Industry (MITI) Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz (seated, right) noted that it is crucial that the government craft policies support investment choices that not only tick the right boxes in terms of the people’s higher-paying jobs but also provide long-term, sustainable economic stability.

He added that the government has made a firm commitment to strategically develop the automotive industry, particularly the EV industry, as part of its zero-greenhouse gas (GHG) target by 2050.

“This has resulted in a clear and firm direction on the EV policy. The government is truly walking its policy talk for the EV industry through various measures, as well as many tax and other incentives,” he said during the launch of the Electric Vehicle Conference 2023, with the theme “Gearing Up for EV Revolution: The Malaysia Story” today.

Tengku Zafrul reaffirmed that Malaysia, as one of the leading electrical and electronics (E&E) manufacturing hubs in Asean, is already taking steps to strengthen its position by crafting supportive policy measures, leveraging on its existing EV ecosystem and ensuring a solid talent pipeline.

Meanwhile, Malaysia Automotive Robotics and IoT Institute (MARii) chairman Datuk Phang Ah Tong (right) described the EV market as “explosive”.

He said by 2022, the global passenger car market was 58 million in production and 10.5 million of those were EV vehicles, an increase of 55% compared to 6.7 million produced in 2021.

“If you look at the numbers, every country sees exponential growth in the EV market,” he said at the press conference.

He also said that the conference was significant in steering the growth of the EV industry in Malaysia and staying relevant to the global shift towards electrification.

Also present was Natural Resources, Environment and Climate Change (NRECC) Minister Nik Nazmi Nik Ahmad who said his ministry has taken into account the importance of balancing energy demand and reducing carbon emissions, and this includes the development of EVs and its ecosystems in Malaysia.

“The country aims to instal 10,000 EV charging points by 2025 through the Low Carbon Mobility Blueprint, with up to 900 charging points at present,” he shared.

He added that NRECC is also committed to increasing electricity generation from renewable energy (RE) sources through the Electricity Supply Generation Development Plan 2021-2039 while strengthening the grid and developing the EV ecosystem.

Meanwhile, Malaysian Investment Development Authority (Mida) CEO Datuk Wira Arham Abdul Rahman (seated, left) expressed optimism about the increasing popularity of EVs, particularly with the growing demand for environmentally friendly transportation in the Asean region.

“Through proactive initiatives, Mida is poised to position Malaysia as a prominent global value chain player and the preferred technology partner for EVs, in line with the National Investment Aspirations and the New Investment Policy (NIP), towards achieving low carbon mobility,” he commented.

He further urged the industry players to take the initiative and increase the involvement of local companies in high-value-added activities in both the domestic and global supply chains.

“By working together, we have the potential to create positive economic spillovers, such as transferring technology, providing high-impact jobs, offering investment opportunities, and increasing exports, all in line with our NIP,” he added.

Malaysia has pledged to become a net-zero GHG emissions nation by 2050, as outlined in the 12th Malaysia Plan.

The government is also committed to driving the efforts of attracting investments in EVs and achieving the national target of 15% of the total industry volume for EVs and hybrids by 2030.

Currently, Malaysia has recorded more than 15,000 units of xEVs (plug-in hybrid, hybrid and full battery EVs) on the road in 2022.

The event, organised by Mida and MARii, highlighted Malaysia’s plans and progress towards a more sustainable and environmentally friendly future as well as the government’s commitment to driving the EV industry forward and supporting the development of related technologies.

There were also business clinic sessions with over 30 companies with a turnout of over 300 attendees, both physically and virtually.



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