MALAYSIA: Despite government incentives, Malaysia’s shift to electric vehicles (EVs) remains sluggish. As of 2021, only about 0.05% of new cars sold in the country were electric, with approximately 31,000 EVs registered nationwide, according to The Straits Times (ST). Despite ambitious government targets, the adoption rate remains slow due to financial constraints, infrastructure challenges, and consumer hesitation.
Financial barriers
One of the biggest deterrents for many Malaysians is the high upfront cost of EVs. While the government has introduced import duty exemptions and road tax waivers, EVs remain significantly more expensive than petrol-powered cars. As The Straits Times pointed out, many affordable EV models seen in other markets are not yet widely available in Malaysia.
Additionally, battery replacement costs raise concerns for potential buyers. According to Wikipedia’s entry on plug-in electric vehicles in Malaysia (PEVM), battery costs make up a significant portion of an EV’s price, and uncertainty over long-term maintenance discourages middle-class consumers.
Another major obstacle is charging infrastructure. As noted by ST, Malaysia currently has only 251 public charging stations, of which nine are equipped with DC fast chargers. This limited availability makes long-distance travel difficult, reinforcing consumer reluctance.
Another issue is the lack of charging points in residential areas. Many Malaysians live in high-rise apartments or condominiums, where installing personal chargers is often not feasible due to building regulations. PEVM also highlighted that landlords and property developers are slow to integrate EV-friendly infrastructure, further slowing adoption.
Psychological barriers
Beyond cost and infrastructure, consumer perception is critical to the adoption rate. Many Malaysians remain sceptical about EV technology, particularly regarding battery lifespan, repair costs, and overall reliability.
ST cited a survey indicating that concerns about battery degradation over time make potential buyers hesitant. Many also believe that EVs require specialised servicing, and owners may struggle with repairs with a limited number of skilled technicians available.
The Malaysian government has set a target of 80% EV adoption by 2050. It has introduced various incentives to achieve this vision, including corporate tax breaks for companies installing EV chargers. However, despite these efforts, ST notes minimal impact due to slow infrastructure development.
The government has also partnered with private companies to expand the charging network. Still, many of these projects are in their early stages, and without faster progress, Malaysia’s EV adoption rate is unlikely to increase dramatically anytime soon.
Industry efforts
Some private companies have taken matters into their own hands. For example, A previous article from The Independent Singapore (TISG) reported that Grab plans to introduce 50,000 electric vehicles in its regional fleet, including Malaysia. If implemented successfully, this could increase public familiarity and confidence in EVs.
Similarly, local car manufacturers such as Proton and Perodua have started exploring EV production, with some models expected to launch in the coming years. However, as PEVM mentioned, the pace remains slow due to concerns over demand and profitability.
The road ahead
To accelerate EV adoption, Malaysia must address financial, infrastructural, and psychological barriers. A more robust charging network and affordable EV options will be essential. Additionally, public awareness campaigns could help shift consumer perceptions and build confidence in the long-term benefits of electric mobility.
ST and TISG have pointed out that the transition will not happen overnight. However, with stronger government support and private sector innovation, Malaysia could eventually overcome these challenges and move towards a greener, more sustainable future.