According to Statista, the electric vehicle (EV) market in Malaysia is projected to grow by 24.15% between 2023 and 2027, resulting in a market volume of US273.90 million in 2027 and the EV market unit sales are expected to reach 5,674 vehicles in 2027.
Budget 2022 provides incentives such as exemptions from all taxes and duties to encourage EV adoption. However, there are still challenges that need to be addressed, such as the lack of charging infrastructure and consumer demand for EVs due to range anxiety. More charging stations are required in Malaysia if the government wants more people to adopt EVs.
The Edge Markets reports that the Ministry of International Trade and Industry (MITI) has announced that Malaysia is set to establish approximately 4,000 EV charging points this year. As of now, the country currently has 900 EV charging points.
MITI has a plan to achieve 10,000 charging stations by 2025, with 1,000 direct current type units and 9,000 alternating current or slow charging units.
Datuk Wira Arham Abdul Rahman, the CEO of the Malaysian Investment Development Authority (Mida) and co-secretariat of the National EV Task Force (NEVTF), expressed that Mida is determined to lure valuable investments to enhance the EV supply chain and Malaysia’s EV ecosystem, particularly in crucial components like EV batteries, battery management systems, battery packs, artificial intelligence, onboard charging, charging infrastructure, and modular-based battery swapping technology.
He further added that EVs are predicted to gain popularity in the ASEAN region due to the rising demand for eco-friendly transportation.
The adoption of EVs will also inevitably caused more traffic jams in Malaysia, especially in the Klang Valley. There are currently around 23 million active vehicles in Malaysia. One of the reasons why so many choose to buy a car is because Malaysia has poor public transportation system according to an article by Free Malaysia Today.
Rosli Azad Khan, a transportation consultant, pointed out that only the Klang Valley and certain lines were served by rail services including LRT, MRT, and KTM. He claimed that the Land Public Transport Agency (APAD) was ineffective in planning public transportation because it was disconnected from the requirements of the general populace.
Besides that, according to Wan Agyl Hassan, former head of policy and planning of the Land Public Transport Commission, which existed before APAD, claimed that Malaysia’s public transportation planning was plagued by a lack of coordination and integration between the various modes of transportation. He also criticised the absence of linking stations for the MRT, LRT, and KTM rail networks.