00:00What if cheaper EVs cost Malaysians their jobs?
00:04In a letter to FMT, analyst Jaimil Ghani says Malaysia's EV push is being framed around
00:09one thing, how fast prices can fall.
00:13And yes, cheaper EVs matter.
00:16As Jaimil points out, for most Malaysians, affordability determines whether they can
00:20even make the switch.
00:22But he argues that's only half the story, because behind every car sold is an entire
00:27industry.
00:28Malaysia's automotive sector isn't small.
00:31Jaimil notes it supports over 700,000 jobs, spans hundreds of suppliers, and contributes
00:37about 4% of the economy.
00:39And those aren't just big companies, they're technicians, engineers, and small vendors.
00:44As he describes, entire communities are tied to the supply chain.
00:49So in Jaimil's view, this isn't just about cheaper cars, but about what happens to the
00:55system that builds them.
00:56China.
00:57He points to China.
00:59Prices dropped sharply, in some cases over 30%.
01:02But that came with intense competition, pressure on suppliers, and growing concerns about sustainability.
01:09He also highlights Thailand, where rapid EV growth led to something else.
01:13Too many cars.
01:21In other words, as Jaimil suggests, lower prices helped buyers, but they also strained the industry
01:28behind the scenes.
01:30Malaysia, he argues, isn't starting from scratch.
01:32Local car makers already have over 75% localization, built over decades of investment, suppliers,
01:39and skills.
01:40That's why car and EV policy, as he lays it out, isn't just about selling cars.
01:44It's about building local supply chains, creating higher value manufacturing, and pushing companies
01:50to export.
01:51But Jaimil also flags a key risk.
01:55Export-driven models depend on global demand.
01:58And global demand isn't something Malaysia controls.
02:01At the same time, he notes competition isn't exactly fair.
02:05Companies like BYD receive billions in subsidies, shaping prices in ways the market alone doesn't
02:10explain.
02:12So every policy choice becomes a trade-off.
02:15As Jaimil frames it, push prices down and risk weakening local industry.
02:20Protect the ecosystem, and EVs may stay expensive longer.
02:25There's no clear answer.
02:28The real question he suggests is this.
02:31Can Malaysia make EVs more affordable without hollowing out the industry that supports them?
02:37For the full argument, read Jaimil Ghani's letter, EV Drive Should Not Lead to Job Losses,
02:42on FMT.
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