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EV policy to be ready by July

EV policy to be ready by July

20 May 2021

The policy on electric vehicle (EV) industry, which is a part of the National Automotive Policy 2020, is expected to be ready by this July.

Malaysia Automotive, Robotics and IoT Institute CEO Datuk Madani Sahari (picture) said some tweaking is needed given the input from other ministries, especially on green-related incentives.

“The Environment and Water Ministry is looking forward to having EV as a way for a greener economy,” he said in a webinar titled “A New Start for EV in Malaysia” yesterday.

Madani expects the policy to be tabled to the Cabinet by next month and once approved, it will be announced by July.

One of the adjustments proposed in the EV policy is for the excise and import duties be scrapped altogether to make the technology more affordable to boost adoption of the vehicles among the public.

If this policy materialises, the prices of EVs are expected to drop by at least 50%.

The excise duty on completely built-up EVs now is 10% across the board, coupled with a 10% sales tax imposed on all cars.

“We are looking to include incentives for users that touch on road tax, green parking scheme, charging installation and toll rebate,” said Madani.

He said Malaysia is looking at formulating an energy policy to support its EV measures.

“By 2025, we are targeting renewable energy (RE) to account for 25% of generation capacity. A separate team in the International Trade and Industry Ministry will look into pushing EV into the pipeline.

“We want to make sure our source of energy is as green as the product itself, which is how we are positioning our EV and green energy as enablers to further sustain the economy,” he added.

Apart from financial incentives, Malaysian EV Owners Club president Datuk Shahrol Azral Ibrahim Halmi said the government must look at the policy holistically.

“One area to look at is grants or support for charging infrastructure providers. There definitely is a case to be made for battery swapping. Once the policies are clear and there is enough demand for EVs, equipment manufacturers would be racing to serve customers with their unique solutions,” he said.

Scania Malaysia sustainability manager David Lantz described EV as the biggest technology shift, especially for commercial vehicles they have seen in years.

“We will face a lot of challenges, for example, the need for a supercharger for the bus and truck available as a commercial option.

“The total cost of ownership is still not attractive enough for trucks to run.

“As much as I am happy to see electric mobility taking off, I urge Malaysia to take one step forward and look at RE sources as well,” he said.

Source: The Malaysian Reserve

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