Budget 2022 initiatives to drive Malaysia's EV sector ahead

MARii Chief Executive Officer Datuk Madani Sahari

KUALA LUMPUR, Nov 11 -- The government’s incentives to boost the electric vehicles (EV) sector, including full exemption of import duties, excise duties and sales tax is set to catalyse demand and electrify the EV market.

The move is an important milestone in the local development of technologies and business activities related to EVs, said Datuk Madani Sahari, chief executive officer of the Malaysia Automotive, Robotics and IoT Institute (MARii) in a statement today.

He noted that an industry shift towards EVs goes beyond the introduction of electric car models as it requires a complete shift in industry and administrative operations, including power generation, charging infrastructure, vehicle service networks, spare parts availability and human capital development.

"While the National Automotive Policy 2020 (NAP 2020) has addressed these issues through its strategic framework, the important piece of the puzzle is the consumer demand for the electric lifestyle, which is manifested through the incentives provided under Budget 2022.

"As a technical agency for the development of the automotive and overall mobility sector, MARii is stepping up its efforts through various initiatives it has started even before the NAP 2020 was announced," he said.

Numerous Malaysian standards and regulations have been established for EVs, including safety requirements for electric powertrains of road vehicles, electric motorcycles and electric mopeds.

They also include standards for new components in EVs such as connectors and inlets, charging systems, sockets, testing standards for lithium-ion batteries, as well as standards to encourage battery swapping, wireless charging, and the recycling and disposal of batteries.

Through MARii, the government has formulated strategies to develop homegrown manufacturing and application of local battery together with the development of Battery Management System and Thermal Management System, feasibility studies on Hydrogen Fuel Cell technology, development of critical components in EV manufacturing, as well as applying well-to-wheel concepts in the calculation of emission of EVs.

Madani said an EV Interoperability Centre (EVIC) – a shared test centre for the development of EVs and EV-related products and systems will also be established.

"Details of the EVIC will be released in future announcements by MARii or MITI," he said.

He said MARii is also working with numerous car manufacturers, motorcycle assemblers, commercial vehicle builders, charging station providers, and local component manufacturers on the various aspects of developing a complete ecosystem for EVs.

A few centres of excellence such as MARii's Design Centre and Academy of Technology have also been established to serve as the focal points in enhancing upstream capabilities within the Malaysian ecosystem, he added.



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