Single agency proposed to cut red tape in EV industry

KUALA LUMPUR: A single agency should be formed under the Prime Minister’s Department to cut the red tape that is hampering the growth of the electric vehicle (EV) industry in Malaysia, the Dewan Rakyat heard on Thursday (Oct 19).

According to Lim Lip Eng (PH-Kepong), the EV industry was impeded by government bureaucracy.

“To bring in EVs, we need approval from the Investment, Trade and Industry Ministry. To drive it on the road, we need the Transport Ministry.

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“Charging stations require approval from local governments and possibly, EV batteries even need the involvement of the Natural Resources, Environment and Climate Change Ministry.

“I’m asking for a sole agency under the Prime Minister’s Department where all policies and rules are approved by the PM and all ministries must abide by it. No questions asked,” he said while posing a supplementary question to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz during Question Time.

In reply, Tengku Zafrul said the involvement of different ministries was needed as there are various laws and guidelines to regulate the EV industry.

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“The Cabinet is monitoring (the industry) with the involvement of the relevant ministers in the EV Steering Committee,” he added.

Tengku Zafrul said the issue had been brought up before and at the moment, the public use of EVs needs the commitment of stakeholders and industry players as well as the relevant authorities.

“(My) ministry has a steering and coordinating role at two levels; at the National EV task force and at the Cabinet stage,” he said.

As an example, Tengku Zafrul cited new guidelines announced last week by the Local Government Development Ministry requiring local councils to approve applications for setting up EV stations between seven and 14 days.

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Noting that approvals previously took 33 days, he said coordination was needed among different ministries as the current laws and guidelines still fell under their respective purview.

Earlier, he said more than 12,000 EVs, both cars and motorcycles, had been registered in the country from 2011 up to September.

“The number of registered EVs was more than 3,400 units last year and 7,500 units (this year) up to September, compared to an average of 300 units in previous years,” he added.

Tengku Zafrul also said there are enough charging stations to cater to the number of registered EVs.

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“With the involvement of (the various) agencies, ministries and industry (players), we will expedite (the growth) of the EV industry,” he added.

Malaysia aims to set up 10,000 EV charging bays by 2025 from just under 1,250 at present.

Local Government Development Minister Nga Kor Ming had said earlier that those operating EV charging stations will be given a two-year grace period to register themselves with the relevant local councils.