Malaysia driving for a Green Economy

Blueshark Ecosystem is at the forefront of the shift to two-wheeled electric vehicles, with the company’s drive to be a leader in South-East Asia’s EV revolution supporting the Malaysian government’s green mobility agenda and net-zero goals.

The Malaysian subsidiary of China-based Sharkgulf Technologies Group, the company has quickly risen to become a pioneer in green transport technology, harnessing innovative smart mobility and swappable energy solutions. The aim, the company says, is to transform human mobility at the same time as saving the planet. 

“Electromobility is not merely an ambition; it is a significant move towards a more liveable future, and we aim to be at the forefront of this movement – providing innovative and sustainable solutions for the two-wheelers segment” said Jin Chan, Group Chief Operating Officer for the ASEAN region. 

“Change starts with ideas, but real, lasting transformation comes with practice, and Blueshark is prepared for an electrified future as a company that enables other organizations to meet their own ESG and green mobility goals,” he added. 

Blueshark believes that battery-swapping technology is critical to accelerating EV motorcycle adoption throughout Asia, to overcome issues such as long recharge times, range anxiety and battery lifecycle management.   

Working with local partner EP Manufacturing Berhad, the company is making Malaysia the manufacturing and assembly hub for Blueshark products for the entire ASEAN market, which presently has 220 million internal combustion engine motorcycles but has ambitions to replace those vehicles with EVs by 2030. 

“Malaysia is crucial as our regional base of operations, not just in terms of a manufacturing hub but as a microcosm of the wider ASEAN market,” said Chan. “It is ideally suited as a thriving environment for innovation and EV infrastructure and supply chain development, supported by a forward-looking government and catalysed by industry proponents.” 

The Malaysian government’s initiatives and tax incentives for the sector “have been very encouraging for EV adoption and the decarbonisation of the transportation industry,” Chan said. 

“Many governments are now driving the shift to EVs via policy and incentives and with the increasing ESG commitment from governments across the region, the EV agenda is no longer a ‘nice to have,’ but a mandate, and this responsibility is shared at the corporate level,” he emphasized. 

EV Conference 2023 

Underlining Malaysia’s support for the sector, the first national EV Conference took place in Kuala Lumpur in February, attracting more than 300 participants ranging from vehicle developers to components manufacturers, traditional automakers and an array of affiliated businesses. 

“The response to the event was overwhelmingly positive, with many calling for the conference to become an annual opportunity for the sector to gather and share updates on developments in EVs,” said MIDA CEO Datuk Wira Arham Abdul Rahman. 

“It is important to have a collective effort from all key stakeholders across the value chain, including manufacturers, policymakers, property developers, infrastructure providers and end-users to spur the growth of EV development in Malaysia,” he said. 

Recent initiatives – such as the creation of the National Electric Vehicle Task Force – will have a positive impact, Datuk Wira Arham said. Additionally, enthusiasm across the sector and associated industries means that Malaysia is hoping to reach its target of 15 percent of vehicles being electric by 2030 and 10,000 EV chargers operational in 2025.  

Government initiatives 

The adoption of green technology is critical to the transport sector, but Malaysia has forward-looking plans in other areas of its industry and society. 

Initiatives are underway across the manufacturing industries, as well as in construction and the water and waste businesses, with the Malaysian Green Technology and Climate Change Corp promoting the targets of the Low Carbon Cities 2030 Challenge. Kuala Lumpur has also committed to reducing its carbon intensity to 45 percent of the 2005 level by end of this decade, aligning with the Paris Agreement goal of limiting global warming to below 1.5 degrees Celsius. 

“The harnessing of hydrogen energy is regarded as a particularly promising way for Malaysia to continue its economic development while reducing the impact that industry has on the environment,” said MIDA CEO Datuk Wira Arham Abdul Rahman. 

“Hydrogen has been used in many industrial sectors, such as chemicals, textile fiber manufacturing, glass, electronics and metallurgy,” he said. “Hydrogen is an excellent energy carrier … and will play an important role in the decarbonization of multiple industries, such as cement, steel and transportation.” 

The Malaysian government is presently putting the finishing touches to its national hydrogen strategy, with companies that make the switch likely to become eligible for greater tax allowances and exemptions. 

“Malaysia’s strategic location, along with abundant sources of renewable energy comprising solar, hydro and ocean thermal, will enable Malaysia to become a key player in the hydrogen economy,” said Datuk Wira Arham. “We believe Malaysia will in the near future attract more domestic and foreign investments in the hydrogen economy ecosystem, such as in R&D and technology, production, materials, storage and transportation.” 

More broadly, the nation’s New Investment Policy is designed to promote support across green economy growth sectors and shift industries towards enhanced ESG adoption. The measures available include support for companies through workforce training, the development of sustainable financing models, including incentives for adopting green technologies and grants to fund R&D in new green technologies, as well as the introduction of new standards and regulations for ESG disclosures. 

Importantly, the policy also proposes policies to facilitate investment into green growth areas, such as hydrogen technology, bioenergy and electric mobility. 

EVE Energy 

Joe Chan, director of local operations for China-based EVE Energy, is honest in his assessment of the helping hand that Malaysia extended. 

“The assistance of the Malaysian government has been instrumental in helping our business to expand here,” he said. “We appreciate MIDA’s commitment to foster strong economic ties between Malaysia and China. We are grateful for the offer of tax exemption on our profits, and legal aid which has helped us to navigate complex local legal issues. 

“We would not have been able to succeed without MIDA’s support,” he added. 

EVE intends to invest approximately US$422.3 million in the construction of a cylindrical battery production facility to support firms that manufacture two-wheeled electric vehicles and power tools, with its clients in Malaysia and across South-East Asia. 

“The financial incentives available in Malaysia were very attractive to us when we were considering our first investment in South-East Asia as our clients are very cost-conscious and we cannot compromise on the quality of our products,” said Chan. 

“Government support for battery production facilities is becoming increasingly important, as the demand for high-performance batteries continues to grow,” he said. 

The company is now anticipating a smooth transition to the production of batteries, and as soon as market conditions are ripe, EVE expects to work closely with the Malaysian authorities on a phase-two development that will potentially include the expansion of operations, increased efficiency and the introduction of new technologies and infrastructure. 

Malaysia embraces its green future 

Malaysia is committed to becoming a regional leader in the green economy and has introduced far-reaching policies and plans to achieve the optimum outcomes for both businesses and the environment. Companies – both domestic and foreign – are now able to benefit from the support available to base themselves in a dynamic nation that is at the heart of a rapidly evolving and growing region.