Malaysia's National Energy Transition Roadmap (NETR) Highlights Electric Vehicles and Public Transportation Development

The National Energy Transition Roadmap (NETR), which was officially launched yesterday (29 August) by Prime Minister Datuk Seri Anwar Ibrahim, aims to reinforce Malaysia's commitment to achieving net-zero greenhouse gas (GHG) emissions as early as 2050.

Since the election of a new government in November of last year, the energy industry has seen a number of changes, including the transition to a targeted subsidy mechanism for electricity prices, the adjustment of renewable energy (RE) tariffs to reflect international pricing, the lifting of the RE export ban, and the expansion of the RE quota and installed capacity target to speed up the industry transition.

The NETR identifies five energy transition levers to help Malaysia transition to clean energy, including promoting the use of EVs and raising the modal share of public transport.

In terms of public transport, ongoing support for future public transport infrastructure development is critical to ensuring modal share shifts to 40% by 2040 and 60% by 2050. There will be ongoing focus on electrification of public transport too.


The NETR will see the penetration of both two- and four-wheeled electrified vehicles in the country, with a 50% target for these by 2040, as outlined by the low carbon mobility blueprint (LCMB) and national energy policy (DTN). By 2050, the country expects two-wheeled and four-wheeled EVs to account for 80% of industry volume in their respective categories.

For the record, the previous national target was to increase the proportion of electric vehicles (EVs) and hybrids to 15% of total industry volume (TIV) by 2030 and 38% by 2040.
Malaysia may be a newcomer to the EV market, but the government intends to establish a strong local EV manufacturing base, with 90% of production taking place locally, according to the NETR. The government will Continue co-funding of public charging infrastructure as well as implementing stringent emissions standards to limit non-EEV manufacturing.
Other key takeaways from the NETR are to increase EV product awareness and model availability, identify key localisation opportunities in EVs, and reduce regulatory challenges in ramping up EV adoption, including for charging infrastructure setup (e.g., right-to-charge regulation, approval process for charge point operator licence, review of Uniform Building By-Laws).



However, emphasis will also be placed on internal combustion engine (ICE) fuel economy too, with the goal of continuing to improve in the sector.
The NETR reflects additional insights into how the energy transition plan will be implemented and encouraged, as well as the anticipated impact, while also emphasising the Malaysian Government's commitment to effecting an energy transition that addresses the energy trilemma: security, equity, and sustainability, through a variety of catalyst projects and identified focus areas.