Tengku Zafrul said Miti is looking into policies to ensure the country’s EV ecosystem is fully supported. — Bernama
KUALA LUMPUR: More electric vehicle (EV)-related incentives are expected to be in the revised Budget 2023, which will be tabled on Feb 24, according to International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
“Also, opportunities abound in the areas of renewable energy, energy efficiency, energy storage systems and support services for EVs such as EV charging stations, operations and maintenance,” said Tengku Zafrul in his speech at the EV Conference 2023 held at the Malaysian Investment Development Authority (Mida) headquarters yesterday.
He added that the ministry is seriously looking into policies that will support these sectors to ensure the country’s EV ecosystem is complete and fully supported.
These include standards, certification and verification related to charging systems, battery disposal activities, battery swapping and wireless charging.
Tengku Zafrul also pointed out that a total of 26 projects worth RM14.7bil in the EV sector were approved by Mida from 2018 to September 2022.
The projects are in the EV sector and related ecosystems including assembly, parts and components manufacturing, as well as charging components, he said.
These include projects by South Korean companies SK Nexilis and IMM Technology, as well as Samsung SDI Energy Malaysia’s RM1bil investment in its first-phase project in Negri Sembilan.
China’s battery producer EVE Energy Sdn Bhd also aims to produce cylindrical lithium-ion batteries in Malaysia, while Volvo Malaysia wants to electrify more of its models assembled at it Shah Alam plant.
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EV Tech Sdn Bhd has also announced the introduction of its EV motorcycles, noted Tengku Zafrul.
“The efforts of the government in developing the EV industry have attracted significant investments.
“These highlight the country’s appeal as a destination for various investors, who have helped enhance Malaysia’s competitiveness and innovative leadership in the EV industry by leveraging on our highly skilled workforce and proficient technology experts,” he said.
Tengku Zafrul said the country’s Low Carbon Mobility Blueprint (LCMB) 2021-2030 will evaluate the best energy and greenhouse gas mitigation options for the transportation sector.
Under the LCMB, the country aims to achieve at least 15% of electrified vehicles (xEV), including hybrids, out of the total industry volume by 2030 and 38% of xEVs by 2040 under the National Energy Policy (2022 to 2040).
“By 2025, the government aims to provide 10,000 public charging facilities comprising 9,000 units of alternate current type and 1,000 units of direct current type,” he said.
Tengku Zafrul added that the International Trade and Industry Ministry has established and is leading the national EV task force consisting of representatives from key stakeholders, including the industry, to strategise and implement the development of EVs and their ecosystem nationwide.
He said this initiative is in line with the New Investment Policy, which aims to attract investments and build capacity in technology-focused industries including the next-generation mobility.
Tengku Zafrul said the nascent global EV industry provides significant room for growth, particularly in South-East Asia which has plenty of potential as both a manufacturing hub and market for EVs.
The Asean EV market is estimated to be worth nearly US$500mil (RM2.17bil) in 2021 and is forecast to grow to US$2.7bil (RM11.74bil) by 2027, with a compound annual growth rate of almost 33% from 2022 to 2027, according to Mordor Intelligence.
Tengku Zafrul pointed out that the country is a leading electrical and electronics manufacturing hub in South-East Asia.
“We are serious about leveraging on our position. We have an established ecosystem, backed by solid research and development, and standards facilities (through agencies such as Sirim) as well as an established components’ sub-sector that could service the whole EV value chain comprising semiconductors, sensors, automotive electronics, transceivers, batteries and auto assembly,” he said.
The conference, themed “Gearing up for EV revolution: the Malaysia story”, was organised by Mida and the Malaysia Automotive, Robotics and IoT Institute.
