Malaysia’s electric vehicle (EV) market is growing rapidly, with sales quadrupling in 2023. However, EVs still make up less than 2 percent of new car sales in the country. In an op-ed published by The Star in Malaysia, partner Vaibhav Dua and associate partner Vishal Devarajan explore the steps Malaysia can take to emerge as a frontrunner in the EV industry.
The article highlights several key factors that are driving growth in the Malaysian EV market, including:
Government backing: The Malaysian administration has set its sights on an EV future, aiming for 15 percent of new vehicles to be electric by 2030 and 38 percent by 2040. Plans for public charging infrastructure and tax incentives to encourage EV adoption support this vision.
Private investment: The private sector is equally committed, with over RM26 billion sanctioned for EV assembly and component manufacturing since 2018.
Electronics manufacturing base: Malaysia has a robust electronics manufacturing base, which can be leveraged to produce EV components. Malaysia is the tenth largest electrical and electronics exporter globally.
The authors also discuss some of the challenges that Malaysia faces in its quest to become an EV leader. It must expand its public charging infrastructure to alleviate charging anxiety among potential EV buyers. An ecosystem of services needs to accompany that, including financing, leasing, insurance, and maintenance, to ensure a holistic ownership experience for EV purchasers.
Malaysia is also up against formidable regional contenders like Vietnam, Thailand, and Indonesia in the race to capture a piece of the EV market, which is anticipated to be worth $50 billion by 2030. Nevertheless, by proactively tackling these challenges and capitalizing on its strengths, Malaysia can establish itself as a key player in the swiftly transforming EV arena.
Read the op-ed to learn more about Malaysia’s potential in the EV industry.