News of policies to encourage greater use of electric vehicles (EV) in Malaysia has sparked excitement among mobility providers and EV advocates alike.
However, Leon Foong, SOCAR Mobility Malaysia chief executive officer, said much of these exciting developments are not yet at the concrete rollout stage, with many policies unsupported by official regulations and gazetted laws.
Foong highlighted the recent announcement of the government’s intention to strengthen the development, validation, and commercialisation of local electric vehicle technology through the NanoMalaysia Energy Storage Technology Initiative (NESTI), as presented in the 12th Malaysia Plan.
“Being part of the National Science, Technology and Innovation Policy (DSTIN) 2021-2030, and in synergy with other national policies and blueprints, this is another promising component in a ‘whole of nation’ approach that could improve EV acceptance and expand the ecosystem of EV-adjacent industries in Malaysia,” said Foong.
“However, despite these announcements, what is critically needed at this moment is a clear picture of the concrete incentives and regulations that will be implemented to drive EV adoption.
“For example, incentives for mobility providers like SOCAR, who are enabling drivers in Malaysia to use private cars without the financial commitment required to own one. This is in addition to accelerating EV adoption by enabling drivers to experience EV use through our car-sharing platform.”
He added having clarity on the regulations and incentives would help businesses like his, strategise more effectively.
Foong said the most pressing factors that needed to be achieved and could be introduced in the upcoming Budget 2022, centred on reducing the most direct costs of switching from internal combustion engine (ICE) cars to EVs.
“For a start, a targeted, concrete and long-term tax plan that includes tax exemptions for EV buyers in Budget 2022, should be implemented.
“In the Low Carbon Mobility Blueprint, it was announced that full tax relief would be provided for 10,000 units of fully-imported EVs, applicable until the end of 2022, while these CBU EVs would be given a 50 per cent import and excise duty exemption from 2023 to 2025, to serve as a bridging measure until locally-assembled BEVs become available on the market.
“This can help, but the cap on full tax relief for only 10,000 units in 2022 is insufficient and should be expanded, at least until Malaysia genuinely has locally-assembled EVs for buyers to choose from, which we believe is on the agenda for the 12th Malaysia Plan.”
He added the cost of installing charging infrastructure should also be subsidised, together with the implementation of special electricity tariffs for EV charging throughout Malaysia.
He also said that Malaysia could also implement right-to-plug policies and regulations for residential premises, including in both landed, and multi-unit properties.
“There should be easing of regulations to enable homeowners to easily upgrade their electrical infrastructure for installing a home-based EV charging system, while the management of condominiums and apartments would also be required to install suitable EV charging infrastructure, if there is a demand from residents.
“As we look forward to the tabling of Budget 2022, I am reminded of the projections by the Malaysia Automotive, Robotics and IoT Institute (MARii) earlier this year, in which EV users in Malaysia are expected to enjoy incentives like exemptions or discounts on excise and import duties, as well as on sales and road taxes, besides having access to a green parking scheme and rebates on toll fees and home charger installation costs.
“We hope these benefits will be realised in Budget 2022, along with our wishlist items,” he added.
