LETTERS: The Transport Ministry's plan to introduce a refined road tax structure for electric vehicles (EVs) is a proactive step forward in the country's sustainable mobility narrative.
According to the minister, the new road tax structure is designed to reduce road tax for EVs. This expansive ecosystem will be supported by multiple government agencies.
Additionally, the government anticipates that by next year, there will be more than 10,000 EV charging stations nationwide.
This indicates Malaysia's commitment to fostering an eco-friendly future with a blend of economic foresight and environmental stewardship.
The drive towards green mobility, underscored by the introduction of incentives and infrastructural enhancements, heralds a transformative era not only for transportation but also for Malaysia's economic and environmental landscape.
EVs offer substantial environmental benefits by significantly reducing greenhouse gas emissions associated with internal combustion engine vehicles. With zero exhaust pollutants, EVs will improve air quality and public health.
Moreover, when powered by renewable energy, EVs operate with a nearly negligible carbon footprint, contributing to global efforts in combating climate change and reducing reliance on fossil fuels.
According to the Malaysian Investment Development Authority (Mida), Southeast Asia accounted for just 0.5 per cent of global passenger EV sales in 2022, underscoring the region's early stages of adopting electric vehicle technology.
Nevertheless, as the second largest passenger car market in Southeast Asia, Malaysia is poised to play a leading role in the region's transition to electric mobility.
A report by the Malaysian Automotive Association (MAA) said the EV market in Malaysia was at an exciting phase of growth.
In 2023, EV sales soared to 10,159 units, an increase of 286 per cent compared with 2022. Sales of hybrid vehicles also increased significantly by 40 per cent from the previous year.
Despite the recent growth, the penetration of EVs remains relatively low. In 2023, EVs accounted for only 4.76 per cent of total vechicle sales.
This figure is a significant gap between the current market uptake and the government's ambitious target outlined in the National Electric Mobility Blueprint (NETR), which aims to have EVs constitute 20 per cent of the total industry volume by 2030.
To drive EV adoption, Malaysia can draw lessons from successful EV markets like China.
Key strategies include offering financial incentives for buyers, expanding charging infrastructure, and implementing supportive policies for EV ownership.
One of the key measures that concerns the Malaysian public is the road tax for EVs, as the current structure for traditional internal combustion engine (ICE) vehicles is based on the vehicle type and engine displacement (CC).
Although EVs emit virtually no exhaust during operation, current road tax guidelines could potentially result in higher costs for EVs than ICE vehicles.
This discrepancy has generated considerable debate and attention.
Adjusting the road tax structure to reduce EV ownership cost not only encourages the transition towards environmentally friendly vehicles but also supports Malaysia's broader environmental goals of reducing carbon emissions and promoting sustainable transportation.
Government-led initiatives to enhance EV charging infrastructure will be crucial in alleviating range anxiety and improving convenience.
Thus, by expanding the availability and accessibility of charging stations, Malaysia can ensure that EVs are a viable option for a larger demographic of motorists.
ASSOCIATE PROFESSOR DR LEE CHIN
School of Business and Economics, Universiti Putra Malaysia
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times