IN the global shift towards green mobility, Malaysia isn’t content being a spectator.
The nation is building momentum to position itself as a regional leader in sustainable automotive technologies.
But this journey is about more than just electric vehicles (EVs); it’s an industrial strategy designed to align economic growth with environmental responsibility.
Malaysia’s approach is holistic: a blend of bold policy vision, thoughtful infrastructure development, and an industrial transformation towards environmental stewardship.
The objective is clear: to move beyond being a consumer of green technologies to becoming a hub that produces, innovates, and leads.
But ambition alone isn’t enough. The difference between rhetoric and reality will be execution.
The next five years will determine whether Malaysia becomes Asean’s green mobility linchpin.
Policy is the engine, but execution must shift gears
Malaysia’s green mobility playbook is built on three primary frameworks: the National Automotive Policy (NAP) 2020, the Low Carbon Mobility Blueprint (LCMB) 2021–2030, and the National Energy Transition Roadmap (NETR).
The NAP 2020 aims to contribute RM104.2bil to gross domestic product by 2030, while establishing Malaysia as a serious player in remanufacturing, with RM10bil in remanufactured automotive parts and components exports targeted.
This signals a strategic pivot from traditional manufacturing to a circular economy model that extends product lifecycles and reduces resource wastage.
Complementing the NAP, the LCMB focuses on infrastructure readiness. Its headline target: 10,000 EV charging points nationwide by 2025.
The government isn’t relying on goodwill alone; financial incentives are in place to tip the scales.
Exemptions on import duties, excise, and road taxes for both completely knocked-down and completely built-up EVs, plus personal tax reliefs for home chargers, are designed to slash the upfront cost barrier that has stifled adoption.
But the long game belongs to the NETR. This roadmap aims to push EVs to 80% of new car sales by 2050 while achieving 90% local EV production capability by 2040.
The NETR’s ambitions aren’t just about domestic uptake; they signal an industrial transformation designed to anchor Malaysia in the global EV value chain.
Individually, these policies are strong. Together, they form a comprehensive blueprint for
economic diversification, environmental sustainability, and technological localisation.
Policy doesn’t build cars, factories, or infrastructure. Execution does.
Infrastructure bottlenecks
EV adoption hinges on infrastructure. As of October 2024, Malaysia has deployed 3,354 EV charging points – just a third of its 2025 goal.
While the network includes 956 DC fast chargers and 2,398 AC chargers, this pace is insufficient. Why?
High upfront installation costs, power grid limitations, and regulatory red tape across multiple approval agencies.
The reality is even the most aggressive incentives falter if the execution pipeline is clogged.
The government is taking active steps by allocating RM81.3mil in 2024 to support charging infrastructure, streamlining approval processes, and pushing for public-private partnerships.
Collaborations with industry players like Shell Recharge and Charge+ are critical.
The Malaysia Electric Vehicle Charging Network dashboard, designed for real-time infrastructure tracking, is a good move.
What’s needed now is pace and scale – Malaysia must accelerate deployment tenfold if it’s serious about reaching its targets.
From linear manufacturing to robust circular economy
Malaysia’s green mobility strategy isn’t just about selling EVs; it’s about reshaping how
vehicles are built, used, and retired. Circularity is becoming a core industrial pillar.
The 4R2S certification (repair, reuse, recycle, remanufacture, service, spare parts), spearheaded by Sirim QAS International, aligned to the United Nation’s Sustainable Development Goals (SDG) – SDG 12 on responsible consumption and production, and SDG 11 on sustainable cities and communities – promotes sustainable automotive practices that minimise waste, extend product life, and reduce carbon emissions.
A pilot End-of-Life Vehicle recovery project is already underway – driven by the Malaysia Automotive Robotics & loT Institute, the Department of Environment, and the Ministry of Transport.
This initiative aims to close the loop on automotive production, turning what was once scrap into new economic opportunities.
Malaysia’s national carmaker Proton, through its Proton Green Mobility Challenge, is embedding eco-friendly practices into manufacturing and lifecycle management.
Circularity isn’t just about environmental stewardship; it’s an economic play.
By extending product lifecycles, Malaysia can unlock new revenue streams, reduce raw material dependence, and position itself as a regional remanufacturing hub.
The consumer mindset gap
While policy and infrastructure build the ecosystem, consumer perception remains a major roadblock.
Despite incentives, many Malaysians remain hesitant about EV adoption – an E&Y study shows Malaysians prefer internal combustion engine (ICE) vehicles (40%) and hybrids (20%).
The study also reveals that consumers weigh resale value depreciation (57%), lack of renewable energy for charging (51%), and high battery maintenance and replacement costs (41%).
Additionally, insufficient charging points, range anxiety, and high upfront costs continue to be psychological barriers.
What’s missing is a robust consumer education campaign.
Malaysians will need transparency on total cost of ownership.They need assurance about after-sales support, battery warranties, and infrastructure reliability.
If these concerns aren’t addressed head-on, no amount of tax breaks will shift the needle.
EV adoption isn’t a purely economic decision; it’s a behavioural shift that requires trust.
And when that trust is broken, it shows – a global McKinsey study found on average 29% of global EV owners are likely to switch back to ICE vehicles, far from being a one-way transition to electrification.
The Asean opportunity
As Asean chair in 2025, Malaysia has a golden opportunity to influence the region’s EV future.
Early dialogues around harmonised EV standards, cross-border component recognition, and interoperable charging networks are already in motion.
But leadership isn’t given; it’s an opportunity that should be seized.
Malaysia should leverage its domestic advancements to shape Asean’s collective mobility agenda.
By driving standardisation and supply chain integration, Malaysia could position itself as Asean’s EV enabler, not just another player.
As Thailand and Indonesia ramp up EV production, Malaysia’s edge lies in being the connector by linking regional manufacturing, assembly, and component ecosystems.
If executed well, Malaysia can lead Asean’s green mobility narrative, setting policy frameworks that uplift the entire region while anchoring itself as the central hub.
Challenges ahead
Malaysia’s green mobility strategy is ambitious. But the road is riddled with potential pitfalls:
> Infrastructure lag: If charging networks fail to keep pace, consumer adoption will stall.
> Execution gaps: Bureaucratic bottlenecks, fragmented regulatory oversight, and sluggish implementation undermine policy ambitions.
> Consumer scepticism: Without proactive education and transparent after-sales support, EV adoption will remain niche and trendy.
> Regional competition: Thailand and Indonesia are moving aggressively. If Malaysia doesn’t accelerate localisation and supply chain integration, it risks being outpaced.
The window to solidify leadership is narrow; the next 24 months are critical.
Leading by design, not default
Malaysia’s green mobility push is more than a policy initiative – it’s an industrial renaissance in the making.
The frameworks are in place. The ambition is loud, but success will hinge on Malaysia’s ability to move from policy intent to market impact.
To lead, Malaysia has to:
> Fast-track infrastructure deployment with public-private partnerships.
> Embed circular economy practices at scale.
> Address consumer concerns through education and transparent value propositions.
> Leverage its Asean chairmanship to shape regional EV standards and supply chain integration.
This is not about catching up with global trends; it’s about designing a leadership role Malaysia can own, should we be so bold to take the reins.
