While the government has yet to officially announce its automotive electrification agenda for the country, ambitious plans look to be in store, if a study published by the Malaysian Green Technology And Climate Change Centre (MGTC, formerly known as GreenTech) is any indication.
The Low Carbon Mobility Blueprint (LCMB), as the document is called, outlines recommendations by the ministry of environment and water (KASA) on various means to address emissions from the land transport sector, said to contribute around 20% of the country’s total emission levels.
The blueprint, which MGTC says was presented and accepted by the economic action council and national climate action council this month but remains in final draft and subject to Cabinet approval, highlights the aggressive approach to decarbonise land transportation over the decade heading into 2030.
The proposed policy contains four focus areas, 10 strategies and 45 action plans, and is wide-ranging, covering aspects of the reduction of greenhouse gas emissions and energy reduction via fuel economy and emission improvement as well as from the adoption of alternative fuels such as biodiesel, but we’ll take a closer look at the topic that is most relevant to us, regarding electric vehicle (EV) adoption.
Many of the points outlined in the blueprint should be closely associated with that expected in the specific EV policy that will be put in place in the long-awaited revision of the National Automotive Policy (NAP 2020), and these provide a broader picture of what to expect, that is if timelines actually follow through and deployment of these strategies are executed as intended.
Mirroring that mentioned previously, the study stated that that the long-term success and sustainability of the strategy will need to include local manufacturing, maintenance capacity and infrastructure readiness, and that incentives are needed to bridge the price gap of EVs, kick-start adoption and catalyse local manufacturing.
It confirmed that battery EV (BEV)-specific incentives will be led by full excise duty and import tax exemption being given for the importation of completely built-up (CBU) units, as highlighted by Malaysia Automotive, Robotics and IoT Institute (MARii) CEO Datuk Madani Sahari when we spoke to him last month.
The LCMB, however, reveals the exact number of CBU vehicles that will enjoy this tax relief, and the maximum has been set at 10,000 units, the exemption applicable until the end of 2022. From 2023 to 2025, CBU EV units will be given a 50% import and excise duty exemption, in what is a bridging measure until locally-assembled BEVs become available on the market.
As further cover, these EV incentives are also being structured with plug-in hybrid (PHEV) in mind, with the consideration of them being a necessary transition towards full battery EVs down the road. As such, PHEV-specific incentives will also be introduced. These include tax exemption for qualified CKD models, with 100% exemption being given until 2022, 75% exemption from 2023 to 2025, and 50% exemption from 2026 to 2030.
Qualifications will also be put in place for PHEVs, based on the electric range per charge and with no engine charging. These are set at an initial 30 km range (NEDC) for this year, expanding to 55 km (NEDC) from 2022 to 2024 and 75 km of travel per charge (WLTP) from 2025 to 2027, before being finally set at 100 km (WLTP) from 2028 to 2030.
To ensure penetration, a sufficient EV charging infrastructure is needed, and the plan calls for the establishment of a national target of having 7,000 AC public charging points and 500 DC charging points, with the government leading by example. The proposal calls for government funding to be derived for 2,000 AC and 200 DC charging points out of this total in the immediate phase (which is listed as this year).
The rest will then come with the formation of private EV charging operators. A public tender for a national fast charging network is planned, and the study also proposes that tax incentives will be provided under Green Income Tax Exemption (GITE) for such services until 2030. In areas not serviced by private operators, it calls for the installation of a fast charger for every 100 km and at every R&R stop along major highways, commencing from next year until 2025.
Elsewhere, it is proposed that new requirement guidelines for installing EV charging facilities be incorporated in planning permission for all new buildings, and a tariff revision for public EV charging services will also be studied before the specific rates are implemented. However, no details were given.
Meanwhile, government-led initiatives include plans to push EV (presumably both BEV and PHEV) adoption for taxi use as part of the modernisation process for such services. Incentives for the purchase of EVs and income tax exemption until 2030 are being proposed to offset the higher capital cost of EVs.
The blueprint also lays out adoption of BEVs for use in government and GLC fleets as a means to encourage wider adoption. The idea is to have 10% of new additions to the fleet being BEVs by next year, with the percentage increasing to 20% from 2023 to 2025.
The last will similarly be adopted for GLC fleets, with tax incentives being provided until 2030. From 2026 to 2030, 50% of the new additions to government and GLC fleets are targeted to be locally-manufactured BEVs, giving an indication of when the government expects that CKD of BEVs will begin to come into play.
The electrification action plan aims to grow localisation through providing R&D grants and support for local manufacturers of electric vehicles. Presently, there are no dedicated tax incentives for investment in “green” production and distribution activities, and the idea is to introduce a tax incentive scheme for industries in the production, distribution and services related to low-carbon transpiration.
Buses and motorcycles are also set to feature in the move towards electrification, with plans to establish an e-bus central procurement agency, offering subscriptions of these to ministries and state governments. This will have a revolving fund of RM450 million for competitive leasing as well as a RM100 million annual fund. Support will also be given to local manufacturing of EV buses.
As for electric motorcycles, support will also be provided to local manufacturers, and it has been proposed that tax incentives be given to operators purchasing these for use as delivery service vehicles. There is also a plan to develop a battery swapping standard for e-bikes and have it in place by 2023.
It is not known how much of that proposed in the blueprint will be detailed in the specific EV policy, and it remains to be seen as to whether all the incentives mentioned will happen and, more importantly, be transparent or hidden behind a customised veil. The answers, in due course.
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Malaysian just love sembang-kencang, blow hot air, making chest-thumping, feel-good statements.
At the end, nothing really happened.
Will this so-called EV roadmap gonna fizzle-out just like other past roadmap/policy, etc.
You know and I know la….
Not many affordable EVs are made available before 2022. So the 10k units tax free will only make the rich pay less. Give the regular rakyat a chance, extend it to 2023 or 2034 and each household is entitled to get one tax free during that period.
Tesla Model 3 for RM145,000
why not just do away with excise and import duties forever? that would benefit the rakyat greatly, forever.
So which country has no excise and import duties for car importation?
With the 10k unit how to calculate impact on carbon foot print?
Fashionably late to the party. Guess it’s better late than never.
Government should promote more electric kapchai thats like ex5, lc (not the small scooter type). Subsidy it to cost about RM5000.
EV bikes available previously. But the company went kaput because of no demand. Their only customer is the KFC delivery fleet. Only cost 6000 for 150cc equivalent. I saw it since 2016, then phased out in 2019. Don’t blame govt for everything.
I hope government will serious in the EV vehicle as this is the future trend of the world heading to. Some may argue the EV is not practical as lack of charging station or the range of EV not long enough to hold interstate distance. In fact charging station setup is as simple as ticket machine and it only require very small space compare to gasoline station. Talk about the range, how many of us are travelling more than 400km a day, I believe not more than 5% drivers are frequent long distance traveller (exclude buses and trucks). From KL travel down to JB stop by R&R a 20 min can give a 80% battery life which can last another 300km should be good enough. A big gasoline station can only have 20 nozzles but charging ports at R&R can anytime double or triple coz it only takes very small space.
Hope government can expedite the EV and lure the carmakers to manufacture or assemble before they move away to other SEA countries.
As long as not
Concrete yet anytime can see under carpet or taichi away. Imagine how much dividend lost from that petrol company. Plus no taxation from ev. Seems like a fairy tale.
Someone needs to tell Elon musk to start selling Tesla here
Before embarking on this plan I suggest the Govt update us on the National Anti-Corruption Plan 2019-2023. No point having a Plan but not sticking to it….cakap-cakap KOSONG!
the cheapest available EV in malaysia is the renault
but it sits TWO. or is it ONE?
the next inline is the nissan, and that is about nearly 200k with 10% excise duty. and SST of course. nearly tax free in complete. so okay for the sake of simple calculation and stressing my point u minus another 20% (just say 10% each for excise and SST) and its 160k.
so who is going to be able to buy 160k nissan, which sit 5 of course. but at 160k a pop.
u see, madani, tax free alone isnt working. thats why all those countries, they have some other incentives, rather than tax free. havent u learn anything madani
Kudos to Govt. They might be late to the party but they crashed it in style! Unfortunately though EV cars still remain and expensive playtoy. The next phase would hopefully be extended to 100,000 EV bikes & mopeds for those in the lower segments.
It’s 2021 – the excise taxes should just stay removed indefinitely and not until only 2025. There has been enough protectionism and it is time to end it. It’ll help the rakyat immensely, remove alotta burden. Almost everyone in Malaysia have high car loans. Paying 200-300% the value of a car is crazy, time to progress, gov can surely make money another way instead of relying on the people.
Yes to a greener nation, but unfortunately, money doesn’t grow on trees.
Indonesia and Thailand attracts USD billions in FDIs from EV manufacturers and EV automative ancillary products & creates hundreds if thousand of new jobs, Malaysia wanna give 100,000 tax exempt EVs to the rich & encouraged the outflow of funds. Genius yg kurang pandai…
Tax free BMW, tax free mercedes , tax free tesla , tax free Porsche, tax free Volvo , tax freeeeee
How about the currently exorbitant road tax calculations for EVs? Will there be any adjustments to that?
10k units tax free would benefit those with deep pockets. Very few mainstream electric vehicles for the masses currently.
Should subsidising PHEV totally as Malaysia have been subsidising the rich via PHEV for more than 6 years! What’s the cheapest PHEV? BMW 330e right? How much is a brand new BMW 330e? RM260K at least right? Out of reach for most M40s group of buyers. Due to lack of BEV friendly policy, a brand new Nissan Leaf is the lowest price BEV at RM180K but everybody knows due to high profit margin ETCM & lack of advance features on the new Leaf, most importantly lack of active battery cooling system, the sales are very poor.
Right now, there are a lot affordable to cheap BEVs worldwide! To name a few, Ora Good/Black Cat, MGZSEV, MG5, MG Marvel, Hyundai Ioniq Electric, Hyundai Kona Electric, BYD e6, Geely Geometry, Honda e, Mini E, Renault Zoe, VW ID.3, ID.4, etc & so many more and if without taxes, Malaysian can enjoy those affordable brand new 4-wheelers BEV from RM45K to RM150K anytime!!! 2-wheelers BEV around RM3K to RM20K without taxes can be adopted by some B40s group of people & they will benefit the most on the national BEV mass adoption tax relief agenda.
Come on Malaysian! Think again. Stop subsidising the rich via PHEV & ICE ownership.
Gov should push Hybrid car first, with 100% tax free. So more user will accept hybrid benefit. At the same time, gov should push all petrol station within malaysia to install at lest 2 EV charging station with Fast DC charging system. The petrol station will get gov rebate for completed the EV charging station. Once all out EV station is up, people will sure move to EV in malaysia.
This plan can be called the rich man’s path to electrification. It is certainly not suitable for the poorest state in Malaysia, Sabah. Malaysia pretends to be richer than even USA and China, the 2 biggest economies in the world.
NEV and eBike policies are widespread in USA and China, allowing even the poorest to use EV, these vehicles are completely absent in the Malaysian proposal.
Of special note is the absent policy on battery manufacturing and recycling. With a minimum of 30km electric range for a hybrid, it will make hybrid cars expensive because of the cost of the battery.
At the cost of rm150 for every km of range, the cost of battery for 30km range is rm 4,500. Worse, unlike EV with big batteries, small batteries need to be replaced frequently, every few years, because at 1000 charging cycles, the range of a 30km battery is 30,000 km.
My proposal for an Optimum hybrid range is just 1km, enough to store the kinetic energy of a car. Fuel cars need only operate at its optimum speed, which is more than 10kmph. Less than that, use electric. Because the range is only 1km, the cost can be as low as RM150, but we can use longer lastingg and safer LiFePo and LiTo, batteries.
Since this technology is patented in Malaysia, assigned to UMS, called Optimum Hybrid Vehicle, at least give exemptions to it. Allow hybrids with EV range of at least 1km.
“Low Carbon Footprint Blueprint” seems appropriate but goes on mentioning Electric Vehicles only. How about the thousands of vehicles on the road today, and for the next 20 years, emitting exhaust pollutants? That is NOT going to help achieve Low Carbon Footprint and more importantly earn all important Carbon Credit for the country.
We should use a technology that can be retro-fitted to existing vehicles utilizing currently available fuel; petrol and diesel and yet be able to achieve safe levels of exhaust emission upto or beyond Euro 6 Emission standard… exactly what is needed for both the People and the Government. By the way EV is NOT carbon free as “E” comes from burning coal and fossil fuel! Hydrogen is the answer.