Malaysia's largest car manufacturer, Proton, recently launched its first electric vehicle (EV) and opened it for pre-orders. This vehicle was developed in collaboration with China's Geely Holding Group, involving over 200 engineers and designers from both countries. The project team emphasized the significant potential for cooperation between China and Malaysia in promoting EV technology
Malaysia's largest car manufacturer, Proton, recently launched its first electric vehicle (EV) and opened it for pre-orders. This vehicle was developed in collaboration with China's Geely Holding Group, involving over 200 engineers and designers from both countries. The project team emphasized the significant potential for cooperation between China and Malaysia in promoting EV technology innovation and sustainable development.
The automotive industry is one of Malaysia's key sectors, contributing about 4% to the national GDP annually. In recent years, the Malaysian government has accelerated its efforts to develop the EV sector. In September 2023, it released a "New Industrial Blueprint 2030". According to this plan, EV sales are expected to account for 15% of new car sales by 2030 and rise to 38% by 2040. A report from consulting firm EY shows that around a quarter of Malaysian consumers intend to purchase an electric vehicle due to rising gasoline prices and increased environmental awareness.
The Malaysian government has introduced various incentive policies. For instance, in its 2022 budget proposal, it announced a three-year exemption on import duties and consumption taxes for EVs. It also offers tax refunds on motor vehicle taxes and income taxes for EV owners. By 2025, Malaysia aims to increase the number of charging stations nationwide to 4,000 and reach 10,000 before 2030. Zafrul Aziz, Minister of Investment Trade & Industry, stated that ASEAN's EV market is projected to reach $2.7 billion by 2027. Malaysia will play a crucial role as it assumes the chairmanship of ASEAN in 2025.
Under initiatives such as the Belt and Road Initiative (BRI) and the China-ASEAN Free Trade Area cooperation mechanisms, Chinese companies are enhancing technological collaboration and investment in Malaysia's new energy vehicle sector. Companies like Great Wall Motors and BYD have entered the Malaysian market with new energy models while increasing local production and assembly capabilities to meet the demand for green transportation among locals. According to statistics from the Malaysian Zero Emission Vehicles Association (MZEV), pure electric vehicle sales exceeded 12,000 units within seven months prior to July 2024. BYD's Seal model captured over one-third of the market share, along with the Yuan Plus models.
Great Wall Motors is rapidly advancing local assembly projects through multi-dimensional collaborations across production supply chains. This creates more job opportunities locally and also provides employees with training opportunities in China on new technologies or manufacturing methods.
In Sarawak state, plans have been proposed for hydrogen-powered buses. Kuching city's transport system will utilize hydrogen-powered smart rail vehicles manufactured by CRRC Zhuzhou Electric Locomotive Research Institute Co., Ltd. The company will supply these vehicles along with signaling systems and depot equipment. As of September 2023, the first hydrogen-powered smart railcar has already been delivered and commenced trial runs.
Chinese enterprises continue to deepen their partnerships with local firms to improve infrastructure supporting electric vehicles. In early 2024, Chinese company Telepower signed a strategic memorandum of agreement with Malaysian operator E-Way Energy, aiming at building charging networks including deploying 480kW supercharging stations along highways. Additionally, Yiwei Lithium Energy invested in a cylindrical battery industrial park located in Kedah state. Construction commenced in early 2023 and is expected to be completed by the end of 2025. They also plan investments into storage industries to aid the growth of local power systems.
Former Transport Minister Ong Kian Ming expressed optimism regarding the prospects for bilateral cooperation. He stated, "As more Chinese businesses invest here, strengthening ties across technology and talent areas, we can expect faster advancements within our own domestic electric vehicle industry, contributing significantly towards global green initiatives."