Nik Nazmi: Public transport is best option, but we still need EVs

EXCLUSIVE | Budget 2024, which was passed at the policy stage in the Dewan Rakyat this week, provided a slew of incentives to the electric vehicle (EV) industry as part of the government’s efforts to achieve net-zero emissions.

While electric vehicles have the potential to address climate change by producing significantly less greenhouse gas emissions, arguments have surfaced that prioritising public transportation would provide a more significant contribution towards decarbonisation.

To Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad, however, developing the EV industry was also important due to the country’s strong automotive industry.

“Is public transport better? Yes. But we know that we cannot 100 percent rely on public transport,” he said during an interview with Malaysiakini on Wednesday.

“We may not like it but for me, we already have a (consumer) base (in the automotive industry).

“Why don’t we make it relevant for today, and that relevance is (transitioning towards) EVs.

“I wouldn’t say it’s greenwashing because EVs are still better than petrol-powered cars and are also cleaner for the environment,” he added.

Nik Nazmi added that EVs were only a small part of the Low-Carbon Mobility Blueprint - a policy framework which seeks to reduce emissions from the transportation sector.

The blueprint, which spans from 2021 to 2023, focuses on four areas including improving vehicle energy efficiency and electric mobility adoption.

“The plan has also talked about alternative fuel adoption, like how Sarawak is exploring hydrogen (powered vehicles).

“But it also talks about public transport. So we are not saying that EV (will be developed) at the cost of everything (else).”

Nik Nazmi drew an example with Malaysia’s neighbouring country of Singapore which is known to have one of the most efficient public transportation in the region.

The lion city has vowed to phase out sales of internal combustion engine cars by 2030, and transition towards EVs.

“We’re talking about Singapore, which is very pro-public transport. It’s expensive to own a car there but they still have the option for EVs because they know that it’s needed,” Nik added.

Encouraging faster EV adoption

In recent months, Malaysia has expressed its desire to become an EV powerhouse, with Budget 2024 announcing an RM170 million investment to build 180 EV charging stations.

In addition, the government announced plans to extend individual income tax relief up to RM2,500 on EV charging facility expenses for a period of four years and tax deductions for EV rental costs for another two years.

One of the biggest drivers of incentivising the EV industry in Malaysia, particularly in the tabling of this budget, was to encourage a faster adoption rate.

Nik Nazmi likened it to China, where EV adoption rates were relatively high due to a lack of fuel subsidies.

“There is a huge push (to transition to EVs in China) simply because one wants to save money. The difference is big in China because there are no (fuel) subsidies there.

“I think that has been the main thing and why the (Malaysian) government has been looking at the retargeting of (fuel) subsidies so it is the really deserving ones that get them,” he said.

However, the high prices of EVs continue to be a major barrier for most Malaysians - despite the government’s efforts to penetrate the global growing industry.

Nik Nazmi acknowledged this, adding that the budget had catered for micro-mobility vehicles such as electric motorbikes.

Under the budget, the purchase of electronic motorbikes for those with an annual income of below RM120,000 is awarded a rebate of RM2,400.

Leading by example

In addition to EV incentives for the public, the government announced that it would transition its official vehicles from using internal combustion engine automobiles to electric cars beginning next year.

Asked about the government’s plans on how this transition would be carried out, Nik Nazmi said that it would be a gradual procurement.

He added that the government had to carefully manoeuvre around the procurement process due to its tight fiscal position.

“The government doesn't own a lot of our cars, the ones that I use are actually rented.

“I don’t know how we’re going to work out the details because that is for the International Trade and Industry Ministry and the Finance Ministry to discuss.

“But it's also not going to be done in a big bang,” he said.

In August, Nik Nazmi initiated a shift in government office culture to be more energy efficient and reduce greenhouse gas emissions by raising air conditioner temperatures and changing the dress code to suit Malaysian weather.

Nik Nazmi revealed that there has always been a government circular to maintain premises at 24°C to 25°C but were not followed due to stringent dress codes.

“We had to wear coats and ties and that obviously meant that the rooms had to be kept to a certain temperature because it was so hot outside.

“But then I said, why don’t we start to loosen up our dress codes?”

While the ministry has yet to identify the current savings and emission reduction since its announcement, Nik Nazmi said that federal government buildings have saved 42 million kWh, which is about 18 percent of utility bills between the years 2013 to 2017.

“This helped reduce about 33,000 thousand tonnes of carbon dioxide emissions. So I think every bit counts.”

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