SERDANG: Electric vehicles (EVs) may be costly but industries using heavy vehicles should start transitioning from now if the country is to achieve net zero carbon emissions by 2050, says Transport Minister Anthony Loke.
He also said that with fuel subsidies running into the billions every month, the government is looking at ramping up the ecosystem to expand the usage of EVs.
"We are spending over RM2bil a month on diesel subsidies," he said after officiating the 7th edition of the Malaysia Commercial Vehicle Expo (MCVE) here on Thursdday (May 14).
"(The government) must act because if fuel prices continue to rise, the cost burden will also increase.
"We hope the country can move towards a more fuel-efficient and sustainable transportation system.
"EV adoption is something the government has been discussing for the past few years.
"Previously, the focus was more on private vehicles. Now, the Transport Ministry is also trying to push the agenda for commercial vehicles."
Loke noted that electric lorries are much more expensive than those that run on diesel, which was why their adoption was still low.
"The transition is not easy because it has high cost implications for operators," he said, adding that industries should take the opportunity to transition now while the government is still heavily subsidising commercial vehicles.
"China has already taken steps toward electrifying almost its entire commercial vehicle ecosystem.
"It is not that easy to make the transition in our local context. Still, we have to take steps to encourage EV adoption in the current climate," he added.
The EV task force is being told to push for more incentives such as tax exemptions for EV lorries to bring the investment cost down over the long term, he said.
He also said that new rulings by the Investment, Trade and Industry Ministry (Miti) on completely built-up (CBU) EVs are challenging but there are ways to manage this.
Miti recently implemented strict rules for all fully assembled, imported EVs, aiming to foster the local automotive industry and prevent the country becoming a dumping ground for excess foreign capacity.
"(The rules are) more focused on private vehicles, not EV lorries, for which there are currently no major issues.
"What Miti hopes for is greater localisation and more CKD (completely knocked down) assembly in Malaysia.
"We also understand Miti's position. We want to see more EV adoption, but at the same time, we also want to develop the local industry, local economy, and supporting industries through local assembly in Malaysia.
"As for EV lorries, we will discuss this further next week within the task force on how to encourage their adoption," Loke added.
He said there are currently fewer than 10 EV lorries in use in the country.
"To encourage the use of... EV vehicles in general, we must have a complete ecosystem, especially in terms of charging stations.
"We need to explore various approaches to ensure the country’s carbon emissions can be reduced until we achieve net zero – that is Malaysia’s commitment to the global community.
"Every country involved in the Paris Agreement has committed to achieving this by 2050, which is actually not that far away.
"There are only 24 years left to achieve the target.
"So, whether we like it or not, many sectors will need to find ways to reduce carbon emissions," he said.
