Accelerating EV adoption through infrastructure development
Malaysia currently has approximately 1,000 public electric vehicle (EV) charging stations, but the government has set an ambitious target of reaching 30,000 nationwide to support the growing demand for electric transportation. According to Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani, the country needs a more robust charging network to encourage broader EV adoption, especially for long-distance travel. While urban areas have seen increased interest in EVs, many towns and rural regions still lack sufficient charging options. In some locations, there may only be one or two public charging stations, which creates uncertainty for drivers who fear running out of power on their journeys.
Johari highlighted that China's success in promoting EVs can be attributed to significant government investments in charging infrastructure. In contrast, Malaysia has focused on tax exemptions for imported EVs, which have resulted in RM3.3 billion in lost revenue over the past four years. Rather than channeling this money into building a comprehensive charging network, the government has opted for incentives that reduce the financial burden on consumers. Johari argued that the funds saved from these tax exemptions could instead be used to expand the public charging infrastructure, which is essential for the long-term adoption of electric vehicles.
Urban challenges and planning for the future
For residents in apartments and condominiums, installing personal EV charging stations is a complex issue. Limited space and outdated electrical systems in older buildings make it difficult to accommodate the power demands of EV charging. Johari emphasized the need for solutions to address these challenges, as failing to build the necessary infrastructure could place additional strain on public resources. 'We are not against EVs,' he said, 'but we should not push adoption faster than the market can support.' The government must balance the growth of the EV market with the development of supporting infrastructure to avoid overwhelming the system.
To prepare for future developments, Johari urged local authorities and the Housing and Local Government Ministry to plan ahead. Residential projects should incorporate space for public charging stations, ideally matching the number of parking bays available. Johari stressed the importance of cross-sector collaboration to avoid delays in infrastructure rollout and to ensure the necessary planning is in place to meet future needs. 'If we don’t plan now, we will face complaints and challenges down the road,' he said. These efforts are vital to ensure that public housing and commercial developments can support the growing demand for EV charging.
Role of foreign automakers in ecosystem development
Johari stressed that foreign automakers entering the Malaysian market must go beyond simply selling vehicles. Instead of treating Malaysia as a market for exports, these companies should contribute to the development of the local automotive ecosystem. They should collaborate with local entrepreneurs and suppliers to create jobs, strengthen the domestic supply chain, and generate broader economic benefits. Johari warned against investments that might undermine or displace existing businesses, emphasizing the need for partnerships that support the local economy.
He cited the partnership between Proton and China's Geely as a positive example of how foreign investment can support local capabilities. Geely shared its advanced technologies with Proton, and some of these innovations were even registered in Malaysia. Johari described this as a true partnership, where foreign companies contribute to local development rather than simply using the country as an export base. Such collaborative relationships are essential for long-term growth in the automotive industry.
The Proton-Geely partnership has already demonstrated positive outcomes. Proton now employs about 9,700 workers and produces over 150,000 vehicles annually. Johari stressed that such strategic partnerships should be the standard, and the government is committed to fostering investments that support the local economy. 'We want investments that help, not harm,' he said. By building strong relationships with local businesses, foreign automakers can contribute to Malaysia's long-term economic development.
Economist Dr Mohamad Idham Md Razak added that Malaysia must avoid becoming just a market for foreign EVs. Without deeper integration with local manufacturers, the country may miss out on opportunities to add value in the global automotive industry. By building strong partnerships and supporting local innovation, Malaysia can position itself as a key player in the emerging EV economy. The government must ensure that foreign investments contribute to the development of a sustainable and competitive automotive industry.