Investment Minister Tengku Zafrul Abdul Aziz Highlights Opportunities in ASEAN’s Growing EV Market
Petaling Jaya, 20th Feb 2024: Investment, trade, and industry minister Tengku Zafrul Abdul Aziz has urged electric vehicle (EV) automakers with Malaysian facilities to consider Malaysia as their hub to supply and service the fast-growing EV market in ASEAN. He made these remarks during the launch of UMW Toyota Beyond Zero, emphasizing Malaysia’s conducive investment landscape and strategic advantages.
ASEAN EV Market Set to Soar
During his keynote address, Minister Tengku Zafrul highlighted projections indicating a robust growth trajectory for the EV market in ASEAN. With an expected compound annual growth rate of approximately 33%, the market is anticipated to surge from around US$500 million in 2021 to US$2.7 billion (RM11.77 billion) by 2027.
Positive Growth Trends in Malaysia’s Automotive Sector
In 2023, Malaysia’s automotive industry witnessed notable growth, achieving a total industry volume (TIV) close to 800,000 units. Furthermore, the adoption of electrified vehicles (xEV) saw a significant uptick, rising from 2.77% of TIV in 2022 to 4.12% in 2023. The number of newly registered passenger battery electric vehicles (BEVs) also surged from approximately 3,000 units in 2022 to over 13,000 units in 2023.
| Year | Total Industry Volume (TIV) | Electrified Vehicle Adoption Rate |
|---|---|---|
| 2022 | 800,000 units | 2.77% |
| 2023 | 800,000 units | 4.12% |
- Significant increase in xEV adoption from 2022 to 2023.
- Surge in newly registered passenger BEVs indicates growing interest in electric vehicles.
Government Initiatives to Promote EV Industry
Minister Tengku Zafrul reiterated the government’s commitment to supporting the EV industry through the National Automotive Policy (NAP 2020). The policy aims to empower local automotive industry players through various investment incentives for the assembly or manufacture of hybrid and EVs. Additionally, collaboration with global industry leaders is encouraged to bring clean energy vehicle production to Malaysia and establish research and development facilities in the country.
- National Automotive Policy (NAP 2020) provides incentives for hybrid and EV production.
- Collaboration with global industry leaders to promote clean energy vehicle production in Malaysia.
Infrastructure Development for EV Transition
To facilitate the transition to zero-emission vehicles, Malaysia aims to have 20% of TIV for EVs (including hydrogen fuel cells) by 2030, increasing to 50% by 2040 and 80% by 2050. The National EV Steering Committee will address key concerns, including the availability of charging stations to alleviate range anxiety and ensuring sufficient power supply for a reliable charging ecosystem in both urban and rural settings.
- Targeting 20% EV penetration in TIV by 2030, 50% by 2040, and 80% by 2050.
- Addressing concerns regarding charging infrastructure to support widespread adoption of EVs.
Fostering Local Talent and Economic Growth
In addition to infrastructure development, Minister Tengku Zafrul emphasized the importance of nurturing local talent and enhancing economic growth through the EV industry. Collaborations between the Ministry of Investment, Trade, and Industry, along with the Ministry of Human Resources and Higher Education, aim to ensure the industry’s demand for skilled workers is met. By encouraging research and development initiatives and fostering partnerships with global leaders, Malaysia seeks to become a regional leader in EV production and innovation.
- Collaboration between ministries to meet industry demands for skilled workers.
- Focus on research and development to drive innovation and economic growth in the EV sector.
Minister Tengku Zafrul’s call to EV automakers to consider Malaysia as their regional hub underscores the nation’s commitment to fostering a thriving EV industry. With favorable market projections, government support, and infrastructure development plans, Malaysia is poised to capitalize on the opportunities presented by the burgeoning EV market in ASEAN. By embracing innovation and collaboration, Malaysia aims to position itself as a key player in the global transition towards sustainable transportation solutions.
Related News:
Featured Image Courtesy of DALL-E by ChatGPT