Technology (Page 31)

• Govt’s encouraging rhetoric is n’t supported by practical steps to aid infra construction
• Norway’s shift to EVs took 2 years of&nbsp, govt&nbsp, help before tapering down bonuses

Talk is low. Even more so when it comes from the state, which therefore lacks the necessary policy, regulation, and funding resources to getting things moving quickly. Take Malaysia’s electric vehicle ( EV ) public charging ambitions which paint a picture of a green, sustainable future. &nbsp,

A vision, detached from reality

The government’s ambitious&nbsp, target, announced by Malaysian Green Technology Corp ( MGTC ) in late 2020, of 10, 000 public charging stations ( separate from home EV charging ) by 2025 reflects a nation ready to embrace the EV revolution. &nbsp,

But, the reality on the ground, where as of the first quarter of this year, just 2, 214 EV charging stations have been installed, based on Ministry of International Trade and Industry information, tells a starkly different story. As one Charge Point Operator ( CPO ) bluntly puts it:” We are very lonely”.

CPOs are organizations that install and maintain EV charging stations and offer charging service to EV owners. Businesses that sell house Electric charging stations are exempt from this definition. &nbsp,

This registration demonstrates the criss link between lofty objectives and the challenging challenges faced by those who have assumed the responsibility of creating Malaysia’s electric vehicle potential, mainly without government support. &nbsp,

It should come as no surprise that CPOs are struggling due to high import duties and a lack of power infrastructure, regulation challenges, and many agencies fighting for dominance in the sector.

One of the biggest burdens is the large import taxes that must be paid for transported equipment.

” We still have to pay at least 10 % buy duty”, says Puvanendren Maniam, COO of ChargEV Sdn Bhd, a leading Executive. These responsibilities, ranging between 10%-15 %, significantly increase prices for users.

Another key challenge is posed by the lack of sufficient power infrastructure, especially along highways where quick charging is most required to lessen “wait anxiety.” ” For 600 megawatts, you need to throw in a small power sub-station and that would cost us at least around RM300, 000″, Puvanendren said, illustrating the size of the problem.

And then there is the regulation confusion. ” There are no distinct requirements. There’s just rules”, Puvanendren points out. ” I may post everything according to the guide, and we can also get rejected”. This lack of clarity creates an environment of doubt, deterring funding and slowing development.

No surprise that Chua SengTeong ( pic ), Managing Director of chargEV and Puvanendren’s boss, says that the road to electrification is fraught with obstacles.

Add to this the view problem. Chua documents,” the fact is, we’re building a key national network. Yet, we ( public EV charging players ) are viewed as startups ( by the government )”.

He shares some similarities with the mobile operators, who spent billions on developing wireless networks in the first to mid-1990s and received government support through low spectrum licensing costs. The government has little support for the expensive and labor-intensive project to build out open EV charging points, and there is no cash to bridge the gap while the market develops.

The essential requirement vehicle around, EV ownership is rarely at 2 % of total vehicles owned in Malaysia, according to 2023 Road Transport Department information. A sprinkling of optimism comes from recent studies by EY that shows 25 % of Malay are interested in purchasing EVs. Can the people EV charging companies survive while a market burgeons, though?

The three major players with 70 % market reveal

This explains why a small number of people dominate Malaysia’s people EV charging ecology, with chargEV and Gentari Sdn Bhd having deep-pocket kids. Yinson Bhd, an oil and electricity infrastructure person listed on Bursa Malaysia, which made RM6.3 billion in revenue in FY25 and RM741 million in key income, holds the majority of the stock in ChargeEV.

Gentari is owned by the federal fuel company, Petronas. Enough said.

A third player, EV Connection Sdn Bhd ( EVC ) which operates under the brand, JomCharge, has managed to carve some market share as well. EV Connection was founded in 2016 and is now owned by its leader, Lee Yuen How, who stated to DNA,” We have been successful as a business since Day One but on the CPO area we are still in the dark.” Gentari provided cash for the business in 2022. JomCharge has around 621 people demand items. &nbsp,

The Energy Commission of Malaysia established Charge EV in 2015, with Yinson purchasing a majority interest in 2023 for an undisclosed amount in 2021 after taking a majority interest in it. &nbsp,

Petronas founded Gentari in June 2022 with the intention of producing net-zero carbon pollution solutions using solar energy, gas, and clean mobility.

EVC&nbsp, is an EV charging and solar photovoltaic ( PV ) systems company. &nbsp, It installs, operates and maintains EV chargers for professional clothes, and communities and got into the business of operating its own people Vehicle demand points in 2022.&nbsp,

It is thought that the three people collectively control 70 % of the business.

The actuality- no obvious pathway to profitability

While neither chargeEV, or EV Connection, nor Gentari have formally stated how much they have invested into their common Vehicle charging system, all three expect to see breakeven in about eight years time. &nbsp,

Public EV getting is not a business for the timid or those who have short-term objectives, especially when an “incentive” from the government is deemed to be terribly conceived. &nbsp,

The three-year duty crack incentive is simply no happening for us because we simply expect to break even eight years later, Chua said, referring to the government’s tax exemption that fails to address the long-term economic challenges faced.

Gentari sounds this attitude, drawing parallels with Norway’s EV trip. Its director claimed that it took nearly 20 years of continued efforts and government assistance before slashing the incentives. This demonstrates the time and effort required for for a change, suggesting that Malaysia’s EV charging infrastructure may require similar ongoing support to maintain and grow. But will the federal recognize this and act in response to it?

Gentari acknowledges that reaching the 10, 000-charging level destination by 2025 is ambitious, but it is doable, with the right regulation support, it said, despite operating the largest network of EV charging stations in Malaysia, with over 520 charging points spread across 131 locations nationwide. These include people points that are available to all EV drivers and secret points with access to certain users. &nbsp,

The Gentari spokesperson emphasized that” streamlining regulatory processes, particularly reducing approval times for projects, would be crucial to accelerating charger installation”.

The Ministry of Transportation ( MOT ) is the government entity best suited to cut through the bureaucracy, according to Prof. Dr. Vinesh Thiruchelvam, chief innovation and enterprise officer at Asia Pacific University, who also leads its renewable energy initiatives. &nbsp,

” MOT is best placed to govern ( policies, mandates, etc ) but the best agency for actual implementation should be under the Road Transport Department (RTD ) where planning is done, locality determined and specification outlined”.

RTD will undertake the task of working with power utility, TNB, along with locality ownership ( i. e R&amp, R PLUS etc ) with installation based on RTD/Sustainable Energy Development Authority specs so that on-road and in-premise ( hotels, malls, commercial buildings etc ) sites have the same standard implementation he added.

Gentari, while acknowledging the various challenges, has taken a proactive approach. The company is focused on strategically placing fast chargers in high-demand locations, including major cities and highways. To reduce range anxiety and set up multiple charging points at each location to accommodate growing demand, they want to install charging stations every 100 kilometers so that waiting times can be shorter.

‘ Contribution fee’ to TNB

The substantial upfront costs that CPOs must bear include costs for power infrastructure that they do n’t even own. According to Chua, CPOs are required to pay for the construction of substations and other types of power infrastructure, which then become TNB’s property. &nbsp,

For example, a compact substation capable of delivering 600 to 700 kilowatts of power can cost around RM300, 000. This is considered a” contribution fee” to TNB, but the CPOs do n’t retain ownership or control over this infrastructure. In other words, if another company wants to use the same substation later to power their EV charging points, they can contact TNB without paying the CPO who installed it or who installed it. &nbsp,

CPOs who must invest in infrastructure they do n’t own are now a significant financial burden, which could benefit their future competitors. Small wonder that the landscape is rife with smaller players, all of whom are struggling with the high capital demands and the rapidly evolving technology, according to an industry observer. &nbsp,

This underscores the urgent need for a more supportive government approach to building Malaysia’s public EV charging infrastructure, with the leading CPOs optimistic that Budget 2025 will bring them good news. &nbsp,

Zero education

The complete absence of public education and awareness campaigns is perhaps Malaysia’s most obvious oversight of its EV strategy. Unlike the concerted efforts seen in promoting 5G technology, there has been virtually no government-led initiative to educate the public about EVs and the charging infrastructure.

Due to the lack of accurate information, the field is vulnerable to misinformation and fear-mongering, especially on social media. According to Chua, “our team is responding to random questions based on the negative online impressions” for the most part. The lack of authoritative, fact-based education has allowed myths and misconceptions about EV safety and practicality to proliferate unchecked.

The only way forward

Despite the daunting challenges, industry leaders see a path forward for Malaysia’s public EV charging infrastructure. This path, however, demands a shift in approach and policy. Chua emphasizes the need for a holistic strategy:” We need a public-private partnership, whatever that means or what form, but it needs to happen otherwise, you know, it’s not going to work”.

The urgent need for regulatory clarity is at the heart of this strategy. Operators are thrown a maze of uncertainty due to the current patchwork of guidelines across various jurisdictions. ” The question we ask is very simple: who’s the guy that we actually talk to? There is n’t anyone dedicated to carrying the game”, Puvanendren said. &nbsp,

Lee of EVC&nbsp, said,” As part of the EV task force and also technical committee, we observe the government and the agencies are really pushing hard to speed up the approval processes. Some laws require amendments, and it will take some time for this to occur.

Another important pillar of the journey is financial incentives. The government needs to reevaluate how it goes about supporting this developing sector. The industry needs long-term support mechanisms, such as tax breaks and import duty exemptions for businesses installing charging facilities, to support it as it progresses.

Gentari advocates for more incentives for charging networks, such as tax breaks or subsidies for businesses that invest in EV charging infrastructure. In these incentives, they also recommend including Battery Energy Storage Systems ( BESS) to increase system flexibility and reliability. &nbsp,

Additionally, they suggest tax exemptions and cash incentives for battery electric vehicles ( BEVs ), as well as policies to encourage the gradual electrification of vehicle fleets, particularly for business operators. &nbsp,

Equally crucial is the solution to the issue of power infrastructure, and Puvanendren suggests a novel strategy that could speed up charging stations ‘ deployment. ” We could encourage the businesses ( retailers ) to get tax exemptions if they install charging facilities”. This approach could not only make charging stations more affordable, but it also reduced the burden on CPOs to spend. &nbsp,

Puvanendren elaborates that by incentivizing retailers to invest in charging infrastructure, the government could create a win-win situation. Retailers would gain from more customers and foot traffic, while CPOs could concentrate on running and upkeep the stations rather than having to pay the installation’s entire cost.

Gentari has already put in place a similar model, which offers a zero-capex model for public chargers, enabling businesses to host EV chargers at their preferred locations for public use with the least amount of money upfront.

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