PETRONAS: Malaysia’s EV Market Is Not Ready, All Depends On Timing For Expansion

Due to the current state of Malaysia's electric vehicle (EV) market which is not yet established, PETRONAS Dagangan Bhd (PDB) is still waiting for the right time to expand its EV charging networks. 

PDB chairman Datuk Md Arif Mahmood pointed out that the EV market is definitely the future trend. As the company is not only providing fuel, it also has plans to equip simpler and more convenient services to customers in the future. 

"At present, PETRONAS has 60 stations with charging ports for electric vehicles, but unfortunately the usage rate is low.” he stated.

"We have plans to add charging stations for electric vehicles in Malaysia, but it is all about timing, with the current market penetration rate is not the time to increase charging stations, and the company will also add this service according to the demand of certain locations." continued the Chairman. 

Arif pointed out this in response to questions from reporters at the 39th Annual Meeting of the National Oil Trade held today.

Meanwhile, despite the slowdown in Malaysia’s economy caused by COVID-19, PETRONAS’S financial report for 2020 showed that the company's pre-tax profit last year reached RM386.4 million. At the same time, the company also announced a dividend of 38 cents per ordinary share, equivalent to a 96 percent dividend rate.

Its managing director and chief executive officer Azrul Osman Rani noted that last year the company adapted to a rapidly changing market and still ensured that the business remained profitable, despite the uncertainty of the market. PETRONAS still maintained leadership of the market, which reflects the resilience of the company. 

“With the rise of the energy industry and e-commerce, we now need to improve our business in order to adapt to the needs of the future.” said Azrul. 

In addition to fuel, the liquefied petroleum gas (LPG) business has consolidated its position as a market leader by expanding its commercial customer base and new home-style sales channels, making GAS PETRONAS accessible for consumers.The LPG business will continue to expand, including the use of digital platforms to facilitate customers.

At the same time, the company also diversified to include liquefied natural gas (LNG) as a cleaner fuel option, through PETRONAS Group's virtual pipeline system (VPS). This results in being the first company in Malaysia to provide LNG to off-grid customers through road tankers. PETRONAS’s first LNG bunkering vessel (LBV) MVV Avenir Advantage is marketing LNG to the marine industry - the first vessel in Southeast Asia to offer this solution.

In addition, PETRONAS’s Lubricants business is also a part of the key economic sector, expanding the customer base in the B2B and B2C segments.The expansion into the e-commerce sector also supported business growth, with sales doubling from the previous quarter.

In addition to these four core businesses, the company also focuses on its digital and innovative ventures, including the Setel app, an electronic payment platform from which fuel can be purchased directly; ROVR, Malaysia's first mobile refuelling service for commercial customers, and PRYSM, a new commodity brand launched last year, offering more than 60 products for customers to buy online, which reached RM8 million in sales last year.

Sustainability development is an important agenda for PDB to strike a balance between people, the planet and profit. One of the key areas is the development of local entrepreneurs, especially the SME vendors registered under PDB.The company is also developing plans to promote the growth of its retail business, adopting sustainable energy and more environmentally friendly packaging materials.