KUALA LUMPUR – Experts advocate for the adoption of hybrid and electric vehicles (EVs) in Malaysia to pave the way for a healthier and more sustainable future.
With the gradual phasing out of fuel subsidies, the experts foresee a significant shift towards these greener alternatives.
According to the Malaysian Automotive Association, hybrid and EV sales surged in 2023, reaching 38,214 units – a 69% increase from 2022’s 22,619 units. This upward trend underscores the growing acceptance of these vehicles.
Malaysia aims to achieve net-zero emissions in the transport sector by 2050. To reach this goal, the country must accelerate the electrification of its vehicle industry and expand its charging infrastructure.
Speaking to Scoop, Malaysian Digital Economy Consumer Association secretary Muhammad Sha’ani Abdullah highlighted the benefits of removing fuel subsidies.
“Subsidy removal, while complex, is essential for encouraging EV adoption. It also motivates commercial entities to invest in green technologies,” he said.
Sha’ani said public companies were now required to report their environmental, social and governance frameworks, which would likely drive many to switch to hybrids or EVs to reduce greenhouse gas emissions.
Environmental impact
Assoc Prof Raja Ariffin Raja Ghazilla, from Universiti Malaya’s engineering faculty, also supports the subsidy removal. “The fuel price is a major factor influencing market interest in hybrids and EVs. With subsidies being phased out, interest in these vehicles is expected to rise, particularly in urban areas,” he noted.
However, Raja Ariffin pointed out that the environmental benefits of hybrids and EVs required further scrutiny. “While these vehicles are more environmentally friendly during use, their life cycle assessment – including energy generation and battery materials – needs thorough examination. End-of-life battery disposal remains a significant concern,” he said.
Despite these challenges, Raja Ariffin is optimistic about Malaysia catching up with countries like Europe and China in hybrid and EV technology adoption.
“With increasing market demand and technology transfers, local companies can quickly accelerate their adoption of EV technologies,” he said.
Conversely, Malaysian Electric Vehicle Owners’ Club president Datuk Shahrol Azral Ibrahim Halmi cited a 2022 study by the Multidisciplinary Digital Publishing Institute to argue that EVs reduced greenhouse gas emissions compared to internal combustion engines.
He also mentioned Malaysia’s plans to establish facilities for recycling lithium-ion batteries, promoting a circular economy model.
Challenges in EV infrastructure
A significant barrier to EV adoption is the lack of charging stations. The Malaysia Electric Vehicle Charging Network reports only 2,288 charging stations currently in operation.
In March, Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz reaffirmed the goal of 10,000 EV charging stations by 2025.
If this objective remains unchanged, a total of 7,712 charging stations must be installed within the next two years to meet the target.
Shahrol highlighted the need to prioritise expanding the charging infrastructure.
“The current coverage is uneven, with few rapid charging stations on the (peninsula’s) east coast. The National EV Steering Committee must reduce deployment costs and bureaucracy,” he said.
Local automakers Proton and Perodua are gearing up to launch EVs by 2025. Perodua’s EV prototype, the Myvi emo-1, is set to be rolled out by the end of next year, priced between RM50,000 and RM100,000.
Shahrol looks forward to the removal of the RM100,000 pricing restriction for imported EVs in 2026, anticipating that this will offer Malaysian consumers more choices and further boost EV adoption. – June 16, 2024
