In light of the Road Transport Department’s full road tax exemption for electric vehicles (EVs) reaching the end of its duration (from 1 January 2022 to 31 December 2025), automotive industry players are requesting a deadline extension and for it to be extended to hybrid electric vehicles (HEVs), as doing so could continue demand for those types of vehicles and allow manufacturers to develop more products in meeting the government’s 2030 carbon-neutral objectives.
On this, the Malaysian Automotive Association (MAA) that represents new motor vehicle distributors, assemblers and manufacturers in Malaysia, had proposed the import duty on batteries for EVs and HEVs to be abolished altogether.
“A zero import duty on EV and HEV batteries will also promote EV and HEV adoption by consumers because currently, the cost of (those) batteries is posing a deterrent to consumers who wish to adopt EV/HEV,” said the MAA, noting that the batteries are subjected to 20% import duty.
Meanwhile, national carmaker Proton Holdings Bhd expressed its hope for the industry to be given grants to stimulate EV industrialisation without compromising the existing automotive ecosystem.
“We hope for grants for EV charging installations to establish public charging facilities at condominiums and apartments. This will enhance accessibility for all income groups, improving mobility and promoting the adoption of electric vehicles, it said.
To provide support for emerging technologies, Proton urged the government to allocate some funds for training in EV technology, the establishment of EV training facilities as well as research and development (R&D) grants for the development of critical EV components.
The carmaker also called for the re-introduction of special funds to assist local suppliers to invest in the development of local R&D, facilitating technology transfer and establishing manufacturing capabilities toward next-generation critical components, focusing on high voltage battery and system repair.
At the same time, Universiti Teknologi Malaysia (UTM) director of the Automotive Development Centre (ADC), Dr Mohd Azman Abas said that additional funding should be allocated to the Ministry of Transport (MOT) for EV skills training to attract interest and address the current workforce shortage in the automotive sector, particularly in EV technology.
He also emphasised that EV training programmes need to be strengthened to enhance the skill levels of trainees in light of the EV technology advancements. Hence, additional funding is crucial for improving training programmes, ensuring that trainees acquire the technical skills necessary to meet the industry’s growing demands.
“There is also a lack of appropriate equipment and facilities to fully support EV training. Allocating more resources to upgrade these tools and facilities is essential for providing trainees with practical experience and skills to excel in the field,” he said, highlighting the importance of focusing on infrastructure development, particularly EV charging stations.
As the use of electric vehicles increases, so does the demand for skilled workers capable of installing, maintaining and managing EV charging infrastructure. Therefore, Azman believes that training in this field would be crucial in building a comprehensive workforce that can support the expanding EV ecosystem.
“It is equally important to enhance safety aspects within the training programmes, given that EVs operate on high-voltage systems. Government support is bolstering safety measures during training will help create a workforce that not only possess technical expertise but also adheres to the highest safety standards,” he added, believing that the industry will be better equipped to meet the growing demand of the EV sector in Malaysia.
Similarly, Universiti Putra Malaysia (UPM) vice-chancellor Datuk Prof Dr Ahmad Farhan Mohd Sadullah expects the Budget 2025 should prioritise the allocation of funds towards integrating artificial intelligence (AI) into the country’s transportation system.
He explained that AI could optimise the frequency of public transport scheduled and has the potential to better manage traffic flow, preventing cars and motorcyclists from congesting bottleneck routes – an area that has yet to be fully maximised.
“By fully leveraging AI alongside IR4.0, we can adjust the frequency of public transport and traffic lights and manage traffic diversions to avoid bottleneck situations on the roads,” he said.
He also suggested that the government consider congestion pricing, particularly in the Klang Valley, as a measure to ensure the optimal use of road space because a well-functioning public transport system could discourage private vehicle use.
However, he proposed that the government emphasise that the Low Carbon Mobility Blueprint (LCMB) 2021-2030 as a holistic, comprehensive approach to reducing the overall carbon footprint of transportation, rather than solely focusing on electric vehicles.
