Malaysia Automotive Electric Vehicles

Malaysia’s automotive industry plays a crucial role in the country’s manufacturing sector, employing over 710,000 people and contributing four percent to the nation’s GDP. While the electric vehicle (EV) industry is at an early stage of development, it is well-placed for expansion.  Many companies that provide the inputs for EV production, such as semiconductors and copper wire manufacturing, already have facilities in Malaysia.  

However, Malaysia’s existing EV infrastructure is still lacking, particularly the lack of EV charging stations.  Currently, Malaysia only has about 600 EV charging stations, which are insufficient to cater to a broad EV market.  Barriers to developing the EV ecosystem in Malaysia include high costs and inadequate supporting infrastructure, including component shortages, lack of EV experts and skills, electricity grid challenges, increased demand for lithium-ion batteries, and lack of EV charging standards.  Although Malaysia is an upper-middle-income country, and EV owners can also claim tax relief for owning one of those vehicles, EVs remain prohibitively expensive for many people.  

Recognizing the gaps and needs for infrastructure development, the Government of Malaysia has pledged to build 10,000 EV charging stations by 2025 in collaboration with the private sector, per the Low Carbon Mobility Blueprint 2021-2030. Companies contributing to building EV infrastructure in Malaysia will benefit from government incentives, such as tax breaks. The government anticipates those incentives will attract more EV producers to establish a presence in-country and contribute to the development of Malaysia as an EV manufacturing hub. 

To learn more about the Malaysian EV industry and opportunities, please contact Kisok Arumugam at office.kualalumpur@trade.gov.