Minister of international trade & industry Mohamed Azmin Ali told Parliament the national energy consumption requirements must be given serious attention for the transition to EVs and energy-efficient vehicles (EEVs) to replace internal combustion engine vehicles.

“The transition to EEVs and EVs needs to be made carefully so that the supply of energy is adequate,” he said. “The government encourages the production and installation of EEVs, including electric and hybrid vehicles.”

Azmin emphasised the need to organise a strategy to attract investments, especially in the installation of components related to the EV industry in line with the National Investment Aspirations (NIA).

“This is in line with the government-approved NIA in April where the priority is to attract high-tech and quality investments to create jobs for Malaysians.

“In line with the NIA, a company from South Korea has invested RM4.24 billion in Sabah to produce copper foil for the manufacturing and production of batteries for EV vehicles. This is one of the initial steps that we have successfully implemented,” he said.

He was replying to a supplementary question from Nik Mohamad Abduh Nik Abdul Aziz (PAS-Bachok) on the government’s specific strategy to attract investments in the EV components manufacturing sector and the government’s strategic plan for car manufacturers to focus on the development of EV and hybrid vehicles as opposed to the current focus on EEVs.

In reply to a supplementary question from Choong Shiau Yoon (Ind-Tebrau) on a potential joint-venture partner to develop EVs in Malaysia, Azmin said the success of developing the EV industry needed support not only from government policies but also the private sector for infrastructure development.

“Under the ministry of environment and water, there is an agency called Malaysian Green Technology and Climate Change Centre which is, together with several private parties, researching and refining the construction of new infrastructure including charging stations,” he said.