KUALA LUMPUR (Nov 9): To remain competitive in the global electric vehicle (EV) market, Malaysia needs to shift its strategy to securing equity in the EV supply chain, from merely getting foreign direct investment (FDI) through multinational companies.

NanoMalaysia Bhd, a company limited by guarantee under the Ministry of Science, Technology, and Innovation (Mosti), emphasises the importance of harnessing local technology, nurturing local talent, and fostering domestic investments as key priorities. 

“It is vital not to become overly dependent on FDI and multinational corporations; instead, we should drive to secure equity in the EV supply chain, ensuring our active participation and influence in this dynamic sector,” according to NanoMalaysia chief executive officer Dr Rezal Khairi Ahmad. 

“In the essence, the call to action is to create a balanced and mutually beneficial environment where domestic and international players can thrive, while simultaneously asserting our presence in the EV industry by harnessing our local strengths, talents and investments,” he said at the opening ceremony of the Malaysia EV Technology 2023 Conference on Thursday. 

Furthermore, it is essential for both the government and the private sector to reassess their strategies and work together to create a harmonious synergy. This includes realigning domestic investments to ensure that companies such as Tesla and Amazon can benefit from the incentives offered within the local market, said Rezal.

With the current number of 1,246 EV charging stations nationwide, the goal of reaching 10,000 EV charging stations in the next two years appears to be a formidable challenge. 

“It is quite a challenging target. You do the math. That is a lot. But for me, we can grow organically or hyperbolically. It takes a lot of effort to achieve the target; it is not the role of one company,” Rezal told reporters. 

“We contribute four EV charges in our capacity. We can see examples like Gentari (Petronas’ unit), which has formed partnerships with local companies to drive EV adoption, and entities such as Tenaga Nasional, Sime Darby, and others are also making significant contributions. With that hope, there is some optimism that we can achieve,” he said. 

Malaysia is aiming to have 10,000 EV charging stations in place across the country in 2025, as outlined under the Low Carbon Mobility Footprint 2021-2030. These will be made up of 9,000 alternating current charges and 1,000 direct current charges. 

Meanwhile, Mosti Deputy Minister Datuk Arthur Joseph Kurup noted that EVs are still relatively new to the local market, and the existing count of over 1,000 EV charging stations is inadequate to satisfy the growing demand. "The lack of charging stations indicates how undeveloped the EV ecosystem currently is".

Notably, analysts have pointed out several challenges concerning the economic viability of charging stations.

In achieving the target within the specified timeframe, there are concerns about the economic feasibility of charging stations, the rate of EV adoption, the significant costs and investment requirements, as well as the need for reliable electricity supply, Affin Hwang Investment Bank Bhd wrote in a note on Wednesday (Nov 8).