LATEST ELECTRIC MOTORCYCLE NEWS: MALAYSIA

Electric two-wheelers are proving more popular than ever in Malaysia, thanks to government aid, and the convenience they bring, such as easing congestion. 

In 2023, Malaysia’s government announced plans to tackle climate change with its National Energy Transition Road Map, with goals to reach 35% net zero in 2025, 40% in 2035, to be on track to eventually reach 70% net zero emissions by 2050. One of its objectives included increasing electric vehicle adoption to help reduce emissions from the transportation sector, a major greenhouse gas contributor.  

To help Malaysia’s electric mobility objective, Malaysia’s Prime Minister Anwar Ibrahim introduced the Electric Motorcycle Use Promotion Scheme subsidy in December 2023, enabling drivers to save money on electric motorcycle purchases. Since then, electric motorcycle sales have surged, while its non-electric counterpart has been experiencing the opposite effect. 

Malaysia’s congestion issues 

Malaysia’s economy has been growing rapidly in recent years. Due to this, and COVID-19 transmission concerns, more and more of its citizens have purchased private cars. This has led to Malaysia’s roads becoming more congested, especially in its heavily populated Klang Valley area. As gasoline models make up the majority of cars in Malaysia, this also increases pollution issues from the greenhouse gases they emit. 

Since the subsidy announcement In December 2023, many people have taken advantage of the financial benefits of purchasing an electric motorcycle, while contributing to reducing transportation emissions in their local environment. Plus, their compact size gives citizens more space to maneuver past cars and larger vehicles, helping to ease congestion on the roads.  

Malaysia subsidy for electric motorcycle rebates 

The Electric Motorcycle Use Promotion Scheme (also known as MARiiCas) was introduced by the government’s Malaysian Automotive, Robotics and IoT Institute (MARii), and is available until 31st December, or valid EV motorbikes have been redeemed.

It offers a rebate of up to RM 2,400 (approximately USD 559) by purchasing from selected e-motorcycle brands and is eligible for the following:

• Those with an annual income of RM 120,000 (approximately USD 27,000) and below. 
• Citizens aged 18 and above that own a valid motorcycle license (Category B, B1, or B2).

Surging sales since the subsidy announcement

Overall, Malaysia’s motorcycle market has experienced a decrease in registrations in the first half of 2024. Although its electric sector is still very small in comparison to its non-electric market, within 6 months of the MARiiCas subsidy launching it has experienced more demand than ever, overtaking total sales figures from the past 5 years.

MARii announced that its program had approved 3,664 applications from December 2023 until June 2024, equating to a government handout of RM 8.7 million (2 million USD) to electric motorcycle buyers. It will be interesting to see how many more applications there are for this subsidy as we reach the end of this year.

Other Malaysian government initiatives to increase e-motorcycle usage  

The MARii subsidy program is the latest of multiple government actions for growing Malaysia’s electric motorcycle market. 

Road tax exemption

Since 2022, the government has made electric vehicle (including e-motorbike) owners exempt from paying road tax until 31st December 2026. After that date, Malaysia’s transport minister Anthony Loke confirmed that the road tax for EV users will be 85% cheaper than non-electric vehicle users.

Charging

The government is also making electric vehicle charging more convenient for Malaysian EV drivers by increasing charging infrastructure and offering tax relief. Established battery charging companies such as Tenaga Nasional Bhd (TNB), Gentari and Tesla Malaysia, have been recruited to build 180 EV charging stations nationwide.  Plus, riders can receive an individual income tax relief of up to RM2,500 on EV charging expenses for a period of four years, as well as tax relief on EV rentals. 
 

Conclusion

The MARii subsidy scheme has been great for showing Malaysian citizens the financial benefits of electric motorcycles, as well as non-financial, such as their ability to swiftly maneuver past traffic. They are also being used to provide faster medical assistance in the heavily congested Malaysian capital of Kuala Lumpur.

Malaysia has been the latest country in Southeast Asia to announce exciting updates in electric motorcycle promotion. Indonesia and Thailand have also both recently increased their subsidies, helping more people to access electric motorcycles and the many benefits they offer. With the ASEAN motorcycle market still growing considerably, we hope that its electric sector will keep rising to help tackle the devasting effects of climate change.