Malaysia has moved EV adoption to the top of its priority list, while aiming to achieve carbon neutrality by 2050, according to ASEAN Briefing.
The report said Malaysia's semiconductor industry and copper wire industry are the two pillars of its EV future, and investment has been growing. Car component supplier GCG Asia, for one, has unveiled its plan to build a battery factory in Malaysia.
According to Malaysian Investment Development Authority (MIDA), Malaysia is the third-largest automobile market in ASEAN with a total of 28 car parts suppliers and assemblers. The car industry accounts for 4% of the country's GDP.
Challenges remain
However, it will not be easy for Malaysia to adopt EVs as the EV ecosystem and infrastructures are still lacking and too costly to build.
EVs are still a luxury for most Malaysians. The cheapest model available still costs around two times the annual income of a middle-income family in Malaysia.
By far, there are about 600 charging stations across the country, but the government has promised to build 10,000 more by 2025.
Starting this year, EV producers are exempted from import tax, consumption tax, and sales tax, according to the report. The government also encourages carmakers to assemble and manufacture EVs in Malaysia, instead of importing the whole car.
