Electric Vehicle Readiness in Sabah: Overview of Market Forecast and Adoption Challenges

Abstract

Electric vehicles (EVs) have been a hot issue in recent decades as the public and business world started to pay attention to the environmental pollution caused by the use of gasoline, where carbon dioxide emissions from motor vehicle engines are claimed to be the primary cause of global warming and climate change. In Malaysia, the government has taken the initiative to regulate the use of EVs by enacting a number of regulations in order to boost the industry. Since 2014, for example, the 2014 National Automotive Policy has provided a regulatory framework for energy-efficient automobiles. In September 2022, Malaysia released the National Energy Policy (NEP) from 2022 to 2040 in an effort to hasten the execution of policies aimed at achieving zero carbon emissions by the year 2050. By realising a significant economic advantage from the energy transition in accordance with the NEP goals and linked with the ambition of the Long-Term Low Emission Development Strategy (LT-LEDS) to attain net-zero carbon emissions in 2050, Malaysia will be able to pursue the Low Carbon Nation Aspiration 2040 and keep pace with global megatrends while simultaneously seizing economic possibilities from the energy transition. Electric vehicle (EV) adoption in Malaysia is anticipated to rise from less than 1% in 2018 to 38% in 2040 under the Low Carbon Nation Aspiration 2040 objective. While EVs are becoming more popular, particularly in neighbouring countries such as Singapore, Thailand, and Indonesia, the EV adoption rate in Malaysia remains lower, owing to a variety of constraints that stand in the way of widespread EV deployment despite their multiple benefits such as zero tailpipe emissions, cheaper fuel prices, and the ease of filling up at home. This paper gives an overview of electric vehicle readiness in Sabah by assessing the EV market forecast using an econometric regression model, highlighting the challenges and barriers to EVs achieving market acceptability, and addressing concerns for the power utility in Sabah with wide-scale adoption of EVs, including the construction of EV charging stations, influence on the local distribution network, and resale of electricity by a third party.