Malaysia committed to capturing slice of RM12.6b Asean EV pie

ASEAN EV market outlook

Malaysia is determined to capture a significant share of the fast-growing ASEAN electric vehicle (EV) market, projected to reach US$2.7 billion (RM12.61 billion) by 2027 from around US$500 million in 2021 — a compound annual growth rate of 33% between 2022 and 2027, according to Minister of International Trade and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

He said Malaysia has built a complete ecosystem for EVs and Next Generation Vehicles (NxGV), giving it an edge in attracting high-value investment, and is working toward EVs and hybrids making up 20% of new car sales by 2030, rising to 50% by 2040 and 80% by 2050, speaking at the launch of E-mobility Asia 2023 in Kuala Lumpur.

Strategic initiatives

Tengku Zafrul said Malaysia handles 13% of global chip testing and packaging and 7% of global semiconductor commerce, with MITI and its agency, the Malaysian Investment Development Authority (MIDA), actively pushing for greater semiconductor investment. He pointed to five decades of policy support that built a strong electrical and electronics (E&E) sector, particularly in semiconductors, cementing Malaysia's place in the global supply chain.

"Malaysia has become a highly attractive destination in the region for all EV investors because of these established existing ecosystem advantages that are highly conducive for the development of EVs and their related components." — Tengku Zafrul

MIDA has approved 59 projects worth RM26.2 billion in the EV ecosystem between June 2018 and June 2023, spanning car assembly, parts manufacturing, and charging components.

Malaysia welcomes e-mobility

Tengku Zafrul praised E-mobility Asia 2023 (running through 24 November) as a platform for manufacturers and technology pioneers to showcase e-mobility offerings, citing it as one reason global automakers — including Mercedes-Benz and BMW from Europe, China's Geely, Chery and BYD, and South Korea's Hyundai — have entered the Malaysian market.

"Most importantly, the wide range of new mobility solutions can open up technology transfer and innovation for our small and medium enterprises (SMEs), as well as higher-paying jobs for Malaysians. Towards that end, we also hope to collaborate with our neighbours in Asean — whether they are from Thailand, Vietnam, Singapore, the Philippines or Indonesia — to complement each other's strengths so we can capitalise on supply chains that have shifted directly on our (Asean) doorstep." — Tengku Zafrul

He said MITI continues to review its policies to keep Malaysia's EV ecosystem holistic and well-supported, adding that the government looks forward to welcoming more multinational EV, NxGV and renewable energy investors as partners in building a strong Malaysian EV supply chain for regional and global markets.