Energy demand of ASEAN is projected to increase by three times compared to the 2020 value, rising from 654 million tons of oil equivalent (Mtoe) to reach 2.6 Btoe in 2050. To meet the growing energy demand, the energy supply of the region needs to increase by four times of the 2020 total primary energy supply. Without any measures applied, fossil fuels will continue to account for the largest shares of the total primary energy supply of the region in 2050, which mostly comes in the form of oil for transport and coal in industry and power sectors. To manage the growth speed of energy demand and supply, the region needs to strengthen the efforts towards energy transition in the region within the context of energy security, affordability, and sustainability. Moreover, the policy measures package needs to be designed by inclusion of energy efficiency improvement, reduce import dependency, and diversification of energy sources in the region.  

Malaysia as one of the ASEAN Member States (AMS) has earned recognition as the leading nation in the region due to their active efforts on energy transition. In 2020, Malaysia energy demand amounted for 67 Mtoe, which was about 17% of the total energy demand of ASEAN. To manage the speed of its energy growth while ensuring economic growth, Malaysia outlined the Responsible Transition (RT) Pathways in 2050 within the National Transition Roadmap (NETR), which was published in 2023. Energy demand in Malaysia is projected to increase by 0.2% annually until 2050, amounts to 102 Mtoe. It accounts for 23% of the total energy demand of ASEAN in 2050. Energy efficiency is considered a key lever among six transition levers, which aims to manage the speed energy demand side of key sectors such as industry and transport sectors. The transport sector accounts for 25% of the total GHG emissions from energy sector in Malaysia. Among transport modes, GHG emission from road transport accounts for the largest share, which is 85% of the total GHG emissions of transport sector in Malaysia.  

The future mobility policy package aims to change the entire transportation system from users, transportation mode, and infrastructure. Under the NETR, Malaysian government focuses on three key measures: acceleration of electric vehicles (EVs), hydrogen refueling station, and electrification of public road transportation. Availability of charging infrastructure would be more crucial for a smooth energy transition in transport sector in Malaysia from demand side. To achieve a 80% share of EV in total cars in Malaysia in 2050, about 10,000 EV charging station is needed by 2023. Moreover, mobile hydrogen refueling station is also necessary to meet 5% hydrogen share of heavy vehicle in Malaysia by 2050.  Availability of charging infrastructure including decarbonization of power sector would be also crucial for electric public road transportation target in Malaysia.  

Changing the entire existing transportation system requires a more complex policy package design to remove the barriers /challenges faced by future mobility in Malaysia gradually. The lack of charging infrastructure for EVs is viewed as the major challenge by EV users in Malaysia particularly outside of urban areas and safety concerns about battery standards are viewed as major factors for EV user anxiety in Malaysia. The lack of incentives for the private sector to invest in providing public EV charging is viewed as the bottom reason for the limited availability of public EV charging in Malaysia. On the other hand, safety concerns about battery standard is rooted in more complex factors ranging from lack of local manufacturing to minimum standard of EV battery safety, and regulation. With a longer usage period, hydrogen fuel cell is prepared as an alternative to EV battery in Malaysia. However, the current limited availability of hydrogen refuel stations causes longer traffic congestion than EV charging. High price and lack of awareness of consumers of hydrogen fuel cell car are viewed as major challenges in hydrogen fuel cells in Malaysia. 

With MYR 26.2 billion (USD 5.4 billion) investment amount in the EV industry in 2023 and a strong car industry ecosystem of over 50 years, Malaysia has a huge opportunity to become a hub of the EV industry in the region. However, tackling the barriers of future mobility lever is not an easy task. The market pull policy measures are more fit to accelerate future mobility infrastructure charging in Malaysia. It requires strong coordination among the relevant stakeholders along supply chain of EV industry. Combining with demand side management measures (such as avoiding charging during the peak period of electricity demand) could enhance the effectiveness of this policy.  

Malaysia has updated national initiatives in gradually removing the existing barriers in the EV industry such as by planning to provide incentives through relaxing road tax and regulation regarding charging stations. In addition to this, the complementary policy measures that ensure the inclusion of the downstream part of future mobility infrastructure (both EV and hydrogen industry) in Malaysia need to be also paid attention to. For example, ensuring the availability and affordability of key industries placed in downstream positions of future mobility charging for EV and hydrogen would eventually push the smooth policy packages in Malaysia. At the upstream position, enhancing awareness and ensuring trust from users would also be needed. The bottleneck of these complementary policy packages would be the availability of financial or investment, which requires clear investment regulation and aligned existing policy measures from downstream to upstream parts of the future mobility industry in Malaysia. This is inline with the regional leaders’ statement on the necessity to strengthen cooperation along EV supply chain in the region.