EV Ambitions: Cheap Petrol, Costly Bottlenecks

It’s rare we fully agree with mainstream media on EVs, but the New Straits Times has articulated Malaysia’s challenge clearly. Despite one of the region’s most generous EV tax holidays, the country’s EV market share is expected to reach just 5–6% in 2025, far behind Thailand at nearly 20% and Indonesia approaching double digits.

The tax exemption sparked early interest, but structural factors are holding adoption back. Chief among them is RON95 petrol pricing. With fuel fixed at RM1.99 and subsidised up to 300 litres per month, internal combustion cars remain artificially attractive. 

Even as Proton rolls out sub-RM60,000 EVs, cheap petrol keeps the total cost of ownership tilted in favour of ICE vehicles.

Infrastructure is a second constraint, though often overstated. Based on MyZEVA’s latest data, Malaysia has 5,598 licensed EV charging bays for 75,487 EVs, a ratio of 1:13.5. This includes 1,916 DC chargers and 3,682 AC chargers. 

While DC chargers have expanded rapidly, AC chargers remain commercially unattractive due to unclear regulations and high local council fees, which can push installation costs beyond RM30,000.

Approval processes and electricity reseller licences further complicate matters, effectively locking out smaller hotels, offices, and commercial properties from participating. This fragmented system highlights the need for a clear federal EV infrastructure policy, including streamlined approvals, grid readiness, and targeted incentives. 

A Right to Charge policy, making EV charging access a basic right except for genuine safety or technical constraints, would be a decisive step.

Additionally, an EV infrastructure fund to subsidise financing for charge point operators and property owners could accelerate progress. Proton and Perodua are expected to collectively reach 5,000–6,000 monthly EVs once affordable models scale, but adoption will remain capped without these reforms.

Ultimately, Malaysia must be honest about its objective. If EV adoption is pursued solely as an emissions exercise, progress will remain slow. Framed as a strategic move toward energy efficiency and long-term energy independence, however, the case becomes compelling and impossible to ignore.