Malaysia has designated hydrogen vehicle technology as a priority within its national clean energy strategy under the 13th Malaysia Plan (13MP), emphasising the need for policies, tariffs, and incentives to support its adoption.

The Malaysian Automotive Association (MAA) noted that practical frameworks are necessary to facilitate the adoption of hydrogen technology, which is currently deployed in few countries.

Hydrogen vehicle technology is in use in China, Japan, South Korea, the United States, and Germany. Malaysia is developing such technology for future fuel applications, focusing on fuel cell electric vehicles such as the Toyota Mirai.

MAA President Mohd Samsor Mohd Zain stated that implementing clear policies, tariffs, and incentives is essential to enable the automotive industry to integrate hydrogen vehicles into the Malaysian market.

The 13MP positions hydrogen as a potential solution for decarbonising sectors less suitable for conventional battery-electric vehicles, particularly long-haul and heavy-duty transport.

Carbon pricing to drive transition

The planned introduction of a carbon tax and carbon trading under the 13MP is intended to influence vehicle procurement and fleet strategies in public and private sectors.

Proper implementation of these policies could accelerate the shift to low-emission fleets by making conventional vehicles less economically viable and support the development of electric vehicle (EV) charging infrastructure nationwide, aiding Malaysia's transition to cleaner mobility.

TVET and workforce development

The 13MP also emphasises strengthening technical and vocational education and training (TVET) to develop skills required for electric, connected, and autonomous vehicles.

A local workforce is expected to support initiatives such as the Automotive High-Tech Valley (AHTV), which is planned as a hub for automotive manufacturing and research.

This includes investment in research and development facilities and test laboratories, which will contribute to the localisation of automotive components.

Development spending and industrial impact

Under the 13MP, MYR 430 billion (US$ 102.5 billion) has been allocated for development expenditures (DE), representing a 3.6% increase over the 12MP.

This expenditure, at MYR 86 billion per annum, is expected to indirectly affect the automotive sector, particularly commercial vehicle segments, through increased demand generated by public infrastructure projects.

The 13MP outlines a total investment of MYR 611 billion from 2026 to 2030, comprising MYR 430 billion from government development expenditure, MYR 120 billion from government-linked companies and investment vehicles, and MYR 61 billion through public-private partnerships. The plan also targets high-growth, high-value industries, supporting localisation of advanced components such as EV parts and safety systems.