Fuel efficiency standards in Malaysia

MALAYSIA, like many nations around the world, is increasingly recognising the importance of fuel efficiency standards for vehicles as a pivotal component in reducing greenhouse gas emissions and enhancing energy sustainability. The country's burgeoning automotive market and the rising concerns about environmental degradation have prompted a closer examination of this matter.

The country has been focusing on promoting energy-efficient vehicles (EEVs) through incentives under the National Automotive Policy (NAP) since 2020. The NAP, for instance, aims to enhance the production and adoption of EEVs, which include hybrid, plug-in hybrid, and electric vehicles. However, these initiatives are more incentive-based rather than regulatory mandates. While these measures are a step in the right direction, the debate continues about whether the absence of compulsory fuel efficiency standards akin to what the European Union has set means that the automotive market can still be saturated with less fuel-efficient vehicles, which still is a major contributor to the country’s carbon footprint.