MALAYSIA is taking steps to strengthen its position in the electric vehicles (EVs) sector via myriad policy measures, leveraging the existing EV ecosystem and ensuring a solid talent pipeline to help the development of the industry in Malaysia, said the International Trade and Industry Ministry.

Minister Tengku Zafrul Abdul Aziz said Malaysia is seriously looking into policies that will back energy sectors to ensure the EV ecosystem is complete and fully supported, including with standards, certification and verifications related to charging systems and battery disposal.

“Opportunities abound in the areas of renewable energy, energy efficiency, energy storage systems, and support services for EVs, such as EV charging stations, operation and maintenance,” he said in his keynote address at Malaysia’s EV Conference 2023.

To capitalise on the EV market, Tengku Zafrul said the government will strengthen the country’s technical and vocational education and training (TVET). 

“Our Yang di-Pertuan Agong in his royal address at parliament yesterday expressed support for the continued empowerment of TVET, lauding the government’s move to encourage public-private joint ventures on TVET to ensure a better match between graduates’ skills and the current needs of the local industry,” he said.

He said the government made a firm commitment to strategically develop the automotive industry, particularly the EV industry, as part of its 2050 net-zero target.

This includes offering full import, excise and sales tax exemptions for locally assembled EVs until December 31, 2025, and full import and excise duty exemptions for imported EVs until December 31, 2023.

There are also special tax incentives for developing critical components such as the battery management system, battery pack and capacity, onboard charging, charging infrastructure, and modular-based battery swapping technology, he said.

Additionally, road tax exemptions of up to 100% will be provided for EVs, as well as individual income tax relief of up to RM2,500 on the cost of purchase, installation, rent, hire purchase, and subscription fees for EV charging facilities.

“More EV-related incentives are expected to be announced in the revised Budget 2023, which will be presented on February 24 in the Dewan Rakyat,” he said. 

On the EV industry’s growth, Tengku Zafrul said the Malaysian Investment Development Authority approved 26 projects worth RM14.7 billion in the EV and its related ecosystems, including assembly, parts and components manufacturing, and charging components subsectors.

Tengku Zafrul said under the Low Carbon Mobility Blueprint 2021-2030, Malaysia aims to have EVs and hybrid vehicles to account for at least 15% of the total industry volume by 2030. 

“By 2025, the government aims to provide 10,000 public charging facilities, comprising 9,000 units of alternating current (charging) and 1,000 units of direct current (charging),” he said. – Bernama, February 14, 2023.