KUALA LUMPUR – Economists are divided over whether Malaysia should accelerate investment in nationwide electric vehicle (EV) charging infrastructure or allow market demand to dictate the pace of expansion, as the government works towards its target of installing 30,000 public charging points by 2030.
While some argue that building infrastructure ahead of demand is necessary to encourage wider EV adoption, others warn that excessive public investment could result in underused facilities and place unnecessary pressure on government finances.
Senior analyst and consultant at Global Asia Consulting, Samirul Ariff Othman said Malaysia should not wait until EV ownership reaches critical mass before expanding its charging network.
“Malaysia should invest now, but in a strategic and sequenced manner rather than waiting for EV demand to become fully established,” he said speakin to Scoop.
He said the EV market faces a “chicken-and-egg” dilemma, where consumers are reluctant to purchase EVs due to limited charging infrastructure, while private investors remain hesitant to build charging stations because of low vehicle numbers.
“The objective should be to establish a reliable minimum national network that removes range anxiety and gives consumers and investors confidence.”
Beyond that minimum network, further expansion should respond to actual vehicle registrations, traffic flows, population density and charger-utilisation data,” he added.
Samirul said expansion should initially focus on major highways, logistics corridors, tourism routes, state capitals and secondary cities, while slower AC chargers could be deployed at workplaces, residential buildings and commercial areas.
However, chief executive officer of the Centre for Market Education, Carmelo Ferlito, cautioned against allowing public spending to drive infrastructure development without sufficient market demand.
“Infrastructure should expand in response to credible market demand, not in the hope that public spending will manufacture demand.”
“The government should remove regulatory obstacles and allow charging providers, property owners and energy companies to invest where usage can justify the cost,” he said
Ferlito also argued that while regional accessibility is important, equal infrastructure deployment across every state should not become a policy objective.
“Different areas have different population densities, travel patterns and commercial needs. Expansion should therefore be gradual and demand-driven, rather than based on politically determined geographical quotas,” he xplained further.
He warned that large-scale government investment could produce expensive assets that remain underutilised.
“It could stimulate some private activity, but government-led overinvestment risks creating expensive and underused infrastructure.”
Public spending does not automatically create economic value. Investment is sustainable only when users are willing to pay enough to support its operation and maintenance,” he added.
Speaking to Scoop, Economist Geoffrey Williams took an even firmer market-oriented position, arguing that EV infrastructure should not be considered a government responsibility at all.
“It’s not the job of the government to invest in EV infrastructure. EVs are private vehicles and the infrastructure should be provided by the private sector according to demand,” he said.
Williams added that recent changes to Malaysia’s minimum import price for EVs have effectively positioned the vehicles within the higher-income segment, making further public investment difficult to justify.
“The recent changes in minimum EV import prices puts EVs firmly in the high-income groups and they have sufficient market power to ensure charging stations are in place,” he added.
He also questioned the broader economic impact of public investment in charging infrastructure.
“Any further investment by the government is essentially a subsidy for the rich. Investment in EV infrastructure will add nothing to economic growth because it is a transfer of spending from petrol and diesel vehicles so it is net neutral,” he said.
Despite their differing views on government spending, all three economists agreed that the private sector should ultimately play the leading role in expanding Malaysia’s charging network.
Samirul said the government’s role should gradually evolve from being an early market leader to acting as a facilitator by setting standards, streamlining approvals and ensuring competition, while allowing private companies to undertake most investment and operations.
Ferlito similarly said the government’s responsibility should be limited to simplifying approvals, establishing transparent technical and safety standards and ensuring fair competition, while avoiding policies that favour particular companies or technologies.
“The private sector should take the lead,” he said.
Williams likewise maintained that the government should avoid interfering in private markets, arguing that infrastructure investment should naturally follow commercial demand rather than public spending.
As Malaysia pushes ahead with its EV ambitions, the debate highlights the challenge facing policymakers: whether to invest early to accelerate adoption or allow the market to determine when and where charging infrastructure is needed. – July 17, 2026