An insight into Malaysia’s path towards electrification was offered earlier this week when the Low Carbon Mobility Blueprint (LCMB) 2021-30 surfaced into public view. The design plan, which outlines proposals on ways to address emissions in the land transport sector, brought out in greater detail certain aspects of how electrification will be pushed along from an automotive viewpoint.
Among the measures that are planned is the establishment of a national target of having 7,000 AC public charging points and 500 DC charging points as well as incentives, including tax exemption for electric vehicles (EV) to the tune of 100,000 units.
Of this, an allocation of 10,000 units are set to be for battery EVs (BEV), with full excise duty and import tax exemption being given for the importation of completely built-up (CBU) units 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.
The remainder will be for plug-in hybrid (PHEV) units, with the consideration by the government that they are a necessary transition towards BEVs down the road. In terms of PHEV-specific incentives, tax exemption will be given for qualified CKD models, with 100% exemption being given until 2022, 75% exemption from 2023 to 2025, and 50% exemption from 2026 to 2030.
Sounds promising? Yes, and no, according to Maybank Investment Bank Research. In analysis reports it published in response to the LCMB, the research arm of the financial institution said that while the blueprint introduces some EV targets, more can be done to scale up the nationwide EV infrastructure and decarbonisation plan.
Maybank IB Research’s associate director Liaw Thong Jung said that the LCMB offered many positives in its proposed solutions, such as from the plans for an EV infrastructure, electrifying the public transport system and motorcycle segment as well as incentivising or penalising diesel emission level compliance.
However, he expressed less enthusiasm about other aspects of the proposed EV policy, especially the skew towards PHEVs and not full-electric EVs. He said such a move would fail to drive home the country’s aspiration to accelerate the transition from internal combustion engine (ICE) vehicles to BEVs.
Offering the lion’s share of the push to PHEVs, he argued, is something that would defeat the purpose of scaling-up the nationwide EV infrastructure and decarbonisation plan. For one, because they can be driven with their combustion engine, PHEV users do not charge them enough, which makes them less green than they are supposed to be.
Additionally, given that there would be less inclination or need for users of these to charge their cars, the high presence of PHEVs would also make the push towards the development of an essential public charging network that bit slower. He said that this remains a challenge in Malaysia, which only has 421 such charging points as of March 2021.
“Consumers tend to buy PHEVs solely for the lower price point attraction rather than for environment reasons. Until the policy re-focuses on BEVs, Malaysia is unlikely to inspire automotive companies to bring in their BEV pipelines or to relocate their BEV CKD plans here,” he wrote.
He added that challenges that stand in the way of accelerating EV adoption include affordability, charge time required, distance or range between charges, the reliability and availability of charging stations, as well as the variety in options of EV models.
The investment bank said that among the policies and incentives that the government can consider to boost EV demand beyond that already defined is to introduce recurring fiscal incentives such as fuel taxes or a dynamic price of electricity and one-time fiscal incentives such as tax exemptions or carbon pricing.
Additionally, non-fiscal incentives such as special lane access, free parking, toll exemptions and access to low emission zones could also be some of the means that can be introduced to encourage EV take up.
From a regional perspective, Liaw notes that while EV adoption was still at at a low penetration rate of below 1% in ASEAN, things would accelerate in line with global development. He said that Thailand, Indonesia and Singapore will remain ahead of the pack in terms of adoption and developing EV policies.
The report also foresees faster adoption of electric motorbikes than electric cars across the region on the whole. Besides vehicle cost, the two-wheeled segment has a ready-made commercial solution in place, in the form of swappable batteries (eliminating range anxiety issues) and deployable infrastructure.
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Also, instead of the first 10k BEV which probably only benefit a select few, each tax paying Malaysian should be given the option to own a BEV tax free in the next 2-3 years say to encourage take up and promote fairness
Affordable EVs sell below rm70k & 1000hour free charging subsidi for low-income group. EV with 1000km range to balik kampong without worry.
Should made ev road tax free, not pay 10k for road tax per annum like current policy
The speaker lack in describe to cons if gov push BEV solely. MALAYSIA main source of income in petroleum so gov need the rakyat to used it and most of our power plant was coal burner at WM and natural gas at WM.Total BEV not ensure our air more clean since our power plant not come from renewable energy. It also will push gov to build more power plant since more electric power were need to charge all the vehicle. For me PHEV is good but gov need to give more incentive for vehicle that have less carbon foot print starting from build process until the fuel consumption. BEV not shows it mo greener. Volvo has shown value of carbon foot print for BEV is larger compare ICE. And BEV need to used as a normal vehicle for 15 years to make its carbon foot print is equal with 15 years ICE under Malaysia condition power generation.
Kudos to MARii best idea. Wait and see first…
I tend to agree to your opinion, the decarbonization plan needs to come together with how the government generate electricity from the renewable resources.
So that, the emphasis on the BEVs implementation need to go parallel with the renewable resources of electricity.
This way, it does not defeat the purpose of having more BEVs on Malaysia road.
Otherwise, BEVs do not eliminate the carbon footprint since the source of energy mix in Malaysia is still 42% for coal and 40% from natural gas (2020 by Energy Commission)
Actually BEV is not really environmentally friendly Because of the complex batteries they use, it currently takes more energy to produce an electric car than a conventional one. And, disposing of those batteries creates an environmental hazard. Shifting emissions off roads – and onto power plants
Under present conditions, the overall carbon footprint of a battery-powered car “is similar to that of a conventional car with a combustion engine, regardless of its size.” That’s the conclusion of a 2011 study by the Institute for Energy and Environmental Research (IFEU) in Heidelberg.
While less emissions are produced by the cars themselves while driving on the streets, CO2 is still being emitted by power plants to charge the electric cars.
In Malaysia for example, around 90% of Malaysia’s electricity is generated from non-renewable sources such as coal and fossil fuel. Green hydrogen is the way to go if any country really consent with the environment with water as the only emissions.
hydrogen takes MASSVIE amounts of energy to generate, and MASSIVE amount of energy to store. So that is off the table
the green hydrogen is the same as green electricity
So, no matter whether BEV car or Hydrogen car. As long as green energy behind it (Solar or Wind)
https://paultan.org/2007/03/07/proton-and-lotus-engineering-develop-proton-gen2-eve-hybrid-concept/
https://paultan.org/2009/03/27/detroit-electric-to-sign-rm-12-billion-agreement-with-proton-for-electric-car-development/
The above are links to articles up to 14 years ago, regarding Proton’s plan to develop hybrids & EVs. But they didn’t come to fruition. Why?
https://paultan.org/2014/03/14/proton-hybrid-car-end-2014-miti/
https://paultan.org/2014/10/01/proton-iriz-ev-lg/
http://paultan.org/2011/11/04/exclusive-battery-powered-proton-saga-ev-driven-in-uk/
The above are links to more earlier articles about Proton’s hybrids & EVs. There was already a prototype Saga EV in 2011. There was a plan to produce hybrids by end 2014, and another plan to produce EVs by end 2015. And now in 2021, we only get to see this LCMB without any locally produced hybrids & EVs.
Half back policy for sure.
What blueprint? Talk here talk there. All back to how to print money for yourself.
EV Autonomous 5G Taxi.
Grab would required this.
Without sufficient EV Charging Infrastructure, Selangor, Kuala Lumpur will looks like 3rd World City soon.
Disappointing plan by MAI. Keciwa
EVs are always better than PHEV and various type of hybrids.
the best way to reduce is still to keep developing better public transportation system for the mass. EV is good but only serves individuals.
While we are still mulling over how the heck we want to tax EVs, Thailand just announced they will only sell EVs from 2035.
Not only we are behind, we still don’t know how to move forward.
To say ev is more environmental friendly than phev is not truly correct. Where do ev gets tgeir electricity from. Coal powered generation??.. As long as phev can attain overall thermal efficiency close to 42%.. It should be considered green..
The. Committee must look from overalk thermak efficiency from source to user not just simpky say ev is the best solution.
Malaysia Boleh ke Tak Boleh?! Selalu syok sendiri, nak kereta terbang, sedangkan hybrid saja pun tak mampu buat!
Vision 2020 confirmed failed, now have to wait until vision 3030!
EVs don’t matter if electricity still runs on fossil fuels.
Unfortunately we don’t have natural rare earth minerals or nickel or cobalt that would attract EV makers here. Blame god for not giving this to us.
Malaysia govt very pandai one. Before they could crawl, they want to fly at sonic speed.
PHEV is the the best way until a party member is managed to find something to supply and untung atas angin.
Malaysia can power EV cars with natural gas. Win win
Slowwwwwwlyyy ….please
Agreed with the budget factor which still is the main reason for consumer point of view, although the facility, risk and vehicle performance factors are also influence people to take up the vehicle.
Government must start more aggressive initiative to promote PHEV/BEV which I don’t “feel” much in this country at this moment.
With the good and more enhance attractive incentive, we can control the choice whether to take up the risk and have budget for those EVs to make less contribution of carbon gas emission (which make greenhouse effect) from the vehicle that we are using everyday.
One point to add, the world should initiate PHEV/BEV car race that relates to renewable energy.
I hope that “Malaysia” is still in the list of others country for the years to come.
https://iea.blob.core.windows.net/assets/ed5f4484-f556-4110-8c5c-4ede8bcba637/GlobalEVOutlook2021.pdf