KUALA LUMPUR: Growing global uncertainties stemming from the Middle East conflict could accelerate the adoption of electric vehicles (EVs) in Malaysia as consumers seek more stable and cost-effective alternatives.

Deputy Investment, Trade and Industry Minister Sim Tze Tzin said fluctuations in global oil prices due to the conflict have made BEVs an increasingly attractive option for Malaysian drivers.

Sim said Malaysia, like many countries, remains vulnerable to external shocks in energy markets, with fuel prices subject to sudden increases due to the global conflicts.

"EV adoption in Malaysia has grown rapidly over the past five to six years, and we expect this momentum to continue," he said at the unveiling of UMW Toyota Motor's latest battery electric vehicle (BEV) lineup today.

"For a long time, Malaysians have benefited from heavily subsidised fuel, but with ongoing global conflicts and rising fiscal pressure, this model may not be sustainable in the long term," he said.

The government continues to allocate substantial subsidies of up to RM4 billion for RON95 petrol and RM2 billion for diesel, but the rising pressure could gradually shift consumer behaviour.

As a result, more Malaysians may begin to consider BEVs not only as an environmentally friendly option, but as a sustainable practice in the long-run.

Sim continued to highlight the rise in EV adoption that has been growing significantly from just 55 vehicles in 2020 to around 45,000 units today, underscoring the sharp increase within a relatively short period.

Beyond cost consideration, he noted that the wider adoption of BEVs would also play a crucial role in helping Malaysia achieve its net-zero emissions target by 2050.

As global energy dynamics continue to remain unstable, the transition towards electrified mobility is not only inevitable, but necessary for economic resilience as well as environmental sustainability, he added.