Malaysia accelerates EV market to support green goals, fuel automotive growth

Malaysia is accelerating its electric vehicle(EV) market to meet environmental sustainability goals and boost growth in the automotive sector, with more carmakers looking to launch local EV production facilities and tap into the growing consumer thirst.

With Malaysia now becoming the second-largest automobile market in Southeast Asia behind Indonesia, many vehicle manufacturers have recognized the vast economic potential of the country's auto sector, with the transition to new energy vehicles also viewed as a key area for expansion.

Malaysia's main national carmaker Proton, which is owned by China's Geely, launched its first locally assembled electric vehicles in early September, marking a new milestone in the country's industrial journey.

China's BYD leads in electric vehicle sales in Malaysia, while Proton's "e.MAS" is the country's best-selling EV model. Previously, these vehicles were assembled in China by Proton's parent company Geely until the new local assembly plant was opened last month.

Other Chinese automakers are expected to establish plants of their own, giving a significant boost to Malaysia's green and automotive industry goals.

While setting a minimum ceiling price of around 25,000 U.S. dollars to protect companies making internal combustion engine cars locally, Malaysia's government has effectively waived taxes on imported EVs since the start of 2025.

But with that tax exemption for imports set to expire at the end of the year, one analyst said there could be a "scramble" among big auto firms to take advantage before the incentive ends.

"The prices are just going to head straight up. In some cases, it could be up by 50 percent to 100 percent, perhaps. So there's a scramble amongst the serious players, the big players to start setting up local production facilities so that they also get to enjoy the tax-free incentive post-2025," said Alexander Chia, head of International Equity Research at the RHB Investment Bank.

In addition to Proton, Malaysia's second national carmaker Perodua, owned by Japan's Daihatsu, is also slated to begin local EV production in the coming months. China's Leapmotor, in partnership with Europe's Stellantis, as well as BYD, have also announced plans to follow suit.

Many believe this potential influx of global automakers is good news for Malaysian consumers.

"It's a good practice in terms of international trade principles to actually be open to whoever wants to come into the market. They are taking the risks. So I think that should be welcomed because competition would drive higher efficiency, as well as lower the costs for consumers and giving consumers a wider choice here," said Yeah Kim Leng, an economics professor at the Sunway University in Kuala Lumpur.

Some insiders note that these developments will bring opportunities for Malaysia's well-established network of component part makers but say they will also need to up their game to cater to these new EV assembly operations.

Meanwhile, others have called on Malaysia's government to provide more incentives and expand charging facilities if it wants to accelerate the adoption of EVs and boost the sales of locally-assembled cars in the process.

Malaysia accelerates EV market to support green goals, fuel automotive growth

French protesters taking to the streets nationwide say they are growing increasingly frustrated and angry about the future as they struggle with the rising cost of living, deteriorating educational facilities and poor public services.

Nationwide demonstrations erupted in France on Oct 17, with the government estimating that approximately 550,000 people had participated across the country, while organizers claimed the figure reached 800,000.

In many cities, the protests escalated into violent unrest. In Paris, vehicles were set ablaze and shops were vandalized, while public facilities in several other cities also sustained varying degrees of damage.

The mass protests were initially triggered by students dissatisfied with a lack of educational resources and the poor condition of school facilities.

They were later joined by groups such as farmers and urban residents frustrated by rising energy prices, the high cost of living and declining public services.

Last week, protests in Marseille, France's second-largest city, descended into widespread violence.

On Oct 22, authorities in the Bouches-du-Rhone department, where Marseille is located, announced a ban on all protests across the department, including the southern port city, effective Oct 24.

High school students in Marseille say rising living costs and deteriorating school conditions are among the reasons they have taken to the streets.

"The price of gasoline and life itself have become too expensive. We have to protest, for the future, for ourselves and for our lives in the future," said Pablo Marez, a high school student.

"Overcrowding in classes, rats in classes. Walls in classes just don't stand up anymore. The heating doesn't work. During summer, it was way too hot," said Jenna, another high school student.

Observers said the protesters' demands highlight a series of governance challenges facing France, including a fiscal crisis, pressure on the welfare system and political polarization. With the 2027 presidential election approaching, some protesters say they see no candidate capable of turning the situation around.

"Currently, I don't see anyone who is capable of changing the situation in a country like France. I don't believe the answer lies in turning to the extremes or to the extremist parties -- whether it's the extreme right or the extreme left. People are becoming increasingly angry. We saw this on Saturday, October 17, and unfortunately, things are likely to get even worse in two days," said Jerome Borgeot, a social worker who works with homeless people in Marseille.

French protesters grow increasingly disillusioned about future amid nationwide demonstrations