In line with their climate commitments, the member countries of the Association of Southeast Asian Nations (ASEAN) have increased their efforts to decarbonise their public transportation systems. From electric buses to hybrid technologies and sustainable fuel alternatives, the rise of clean buses in the ASEAN region is paving the way for a greener and more sustainable future.

Singapore, Malaysia, Thailand, and Indonesia are at the forefront of this transition, with each country committing to completely transition away from diesel buses in the next few decades. Figure 1 highlights the fleet decarbonisation targets of the ASEAN countries.

Figure 1: Clean bus targets of ASEAN member countries

Source: Southeast Asia Infrastructure Research

Government initiatives and policies have been instrumental in driving the adoption of clean buses in the region. By setting standards and requirements for emissions, fuel efficiency, and environmental performance, and by mandating the use of clean buses in public transportation tenders, governments are encouraging operators to invest in sustainable technologies.

Region-wise development

Singapore

In 2019, as a part of the Land Transport Master Plan 2040, the Land Transport Authority (LTA) committed to electrifying half of its public bus fleet, around 3,000 buses, by 2030. By 2040, all diesel buses will be replaced with electric, hybrid, or other clean-fuel buses.

As of the start of 2022, around 151 e-buses were in operation across the country. Figure 2 shows the increase in clean buses in Singapore over the last four years.

Figure 2: Total number of clean buses in Singapore, 2019–2022

Meanwhile, during the same period, the total number of diesel buses in operation has gone down by nearly 10 per cent. This number is expected to fall further as the LTA plans on replacing over 400 diesel buses by 2025 while making no new procurement.

Figure 3: Total number of diesel buses in Singapore, 2019–2022

Source: Southeast Asia Infrastructure Research

Deployment and development plans

The first large-scale deployment started in 2020 when the LTA rolled out 40 electric buses which were supplied by BYD (Singapore) Private Limited. In August 2021, 20 additional units were supplied by ST Engineering Land Systems. The new buses featured a more efficient pantograph charging system, allowing for faster charging (10 to 15 minutes) during layover periods.

From January 2023, Go-Ahead Singapore started progressively deploying 50 solar panel-fitted buses after a successful six-month-long trial of the system in 2021. Findings from this trial indicated a potential fuel saving of 3–4 per cent annually, amounting to around 1,400 litres of diesel per year. The buses were rolled out by the end of April 2023.

In April 2023, the LTA launched tenders to procure around 400 new electric buses, the largest tender of its kind announced by the public transport agency. The contract is expected to be awarded in the second half of 2023.

Delivery is expected to commence in October 2024 and to be completed by the end of 2025. The new fleet will replace the existing diesel-operated fleet that are nearing their 17-year statutory lifespan.

Charging infrastructure

The LTA is also upgrading its bus infrastructure to support the ongoing efforts to electrify its fleet. Chargers have been installed at the Bulim Bus Depot, Seletar Bus Depot, Loyang Bus Depot, Bedok Integrated Transport Hub, and Bukit Panjang Integrated Transport Hub.

In April 2023, the LTA called for tenders to install electric charging infrastructure at four future bus depots, that is, Sengkang West, Gali Batu, East Coast, and Kim Chuan. The chargers will also be installed at two upcoming integrated transport hubs (ITHs) in Punggol Coast and Pasir Ris.

Other clean-fuel alternatives

In 2018, the LTA deployed 50 hybrid buses supplied by Volvo. However, no further deployment has been made since then. LTA has yet to decide about its preference for hybrid or electric buses.

Although hydrogen fuel cell buses have been presented as an alternative to diesel buses, currently, this option is not feasible due to its high cost compared to electric buses. To be a viable alternative, the break-even price of hydrogen needs to be USD2.39/kg. The price of the fuel is currently around USD16.50/kg.

Malaysia

Currently, carbon emissions from Malaysia’s transport sector accounts for nearly 30 per cent of its total emissions, higher than the global average of 24 per cent. In line with its commitment under the Paris Agreement, the government plans to electrify nearly 2,000 public buses by 2030.

To support the government’s ambitions, several key operators have announced plans for the large-scale deployment of clean buses in Malaysia.

Rapid Bus

In December 2022, Prasarana Malaysia Bhd, the owner of Rapid Bus, announced plans to deploy nearly 600 e-buses by 2027, as part of its Rapid Bus fleet electrification programme. Purchases under the programme will be made in two stages. Figure 4 shows the timeline for bus procurement under the programme.

Figure 4: Rapid Bus fleet electrification programme timeline

Source: Southeast Asia Infrastructure Research

The new fleet will be supplied by BYD.

The large-scale roll-out follows successful trials conducted by Rapid Bus in 2022 during which use of battery-operated buses was tested on the route between Damai Perdana and Lebuh Pudu Hub as well as between Taman Desa and Pasar Seni Hub.

Other clean-fuel technologies

Other than electric buses, the government is also committed to the development of hydrogen fuel technology for public transport. The first trial for testing the technology commenced in 2019 in Kuching City, under which three buses, supplied by China-based Foshan Feichi Automobile Manufacturing Company Limited, were deployed. These buses permanently entered passenger service in 2020.

In November 2022, it was announced that the use of hydrogen technology was being considered for feeder buses serving the upcoming autonomous rapid transport (ART) system in Kuching City.

Philippines

Under the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI), the Department of Transportation (DOTr) plans to electrify 10 per cent of all bus operators’ fleets by 2040.

However, there are some concerns. According to operators, the per unit cost of e-buses is double that of conventional diesel-operated buses. In the absence of any subsidy or financing programme from the government, much of the ongoing electrification programme in the Philippines is funded either by multinational banks or by the operators themselves.

Despite this hurdle, widespread deployment of clean buses is underway in different cities in the Philippines.

Table 1 presents details of the upcoming delivery of electric buses across cities in the Philippines.

Source: Southeast Asia Infrastructure Research

Public Utility Vehicle (PUV) Modernisation Programme

Under the DOTr’s PUV Modernisation Programme, the agency plans to phase out all road public vehicles, including jeepneys and buses older than 15 years, and to replace them with cleaner alternatives. The new vehicles will need to have Euro-4-compliant engines and will need to be powered through an electric battery or LPG, or to be a hybrid.

So far, the programme is prioritising the replacement of jeepneys/minibuses across the country.

The biggest roadblock to the modernisation of PUVs has been the costly transition to cleaner vehicles and cleaner technologies. While the government has offered subsidies to operators, most often this is not enough. In September 2022, the DOTr failed to secure funding worth P778 million that had been earmarked for the PUV modernisation programme during 2023. Moreover, infrastructure to support the new PUVs is lacking. This includes charging stations for electric PUVs and bus lanes for high-capacity PUVs.

Despite these challenges, the DOTr is pushing forward with the programme in an effort to reduce emissions from the transport sector. In May 2023, the agency announced that it will soon launch targets regarding the shift to electric vehicles in terms of the timeframe and the percentage of the total units.

Indonesia

By 2030, the Government of Indonesia aims to electrify all public transit buses. Most of the early development in this electrification programme is taking place in Jakarta, with TransJakarta spearheading initial actions for e-mobility deployment. Successful electrification of buses in the capital city will create a road map for an easy roll-out across the country.

TransJakarta

TransJakarta plans to electrify half of its fleet by 2027. It plans to have around 10,000 clean buses in its fleet by 2030. Figure 5 shows the expected timeline for retiring internal combustion engine (ICE) buses in favour of battery-operated buses.

Figure 5: TransJakarta battery electric bus (BEB) targets, 2022–2030

Source: TransJakarta, 2022

However, electrification plans have been affected by multiple delays and fluctuating targets. According to initial statements, 50 per cent fleet electrification was expected to be achieved by 2025. TransJakarta had planned to deploy a total of 100 new e-buses in 2022 and to have around 190 e-buses by the end of 2023.

Due to procurement issues related to the Covid-19 pandemic, the delivery date for the initial 100 vehicles was pushed back to 2023. As of April 2023, only 22 of the total number of expected units were delivered and put into operation. If such delays continue, electrification deadlines are likely to be missed.

In August 2022, VKTR Teknologi Mobilitas and Equipmake signed an agreement with the operator to convert its existing fleet of diesel buses to BEB. This conversion will be initially tested on a few units which will be attached with electric drivetrains. If the trial is successful, TransJakarta will convert around 3,000 diesel buses to electric.

Vietnam

In Vietnam, market players have shifted their focus from diesel and petrol buses to electric buses in response to growing environmental concerns. In 2019, Vingroup launched VinBus, a subsidiary that focuses on electric bus deployment. The company has plans to deploy 3,000 electric buses across the country by 2025.

So far, the buses are operational in Hanoi (100), Ho Chi Minh City (20), and Phu Quoc (30). This number is still small compared to the over 5,000 buses in operation in the ASEAN region. However, as more funding becomes available, the pace of deployment is expected to pick up.

In October 2022, the Asian Development Bank (ABD) awarded a USD135 million climate financing package to VinFast to finance the future deployment of e-buses and charging stations in other locations in Vietnam.

Thailand

Under the Ministry of Transport’s (MOT’s) EV plan (2022–2037), the agency plans to replace 4,412 (ICE) buses with e-buses by 2027. The Government of Thailand is providing investment incentives, tax reductions, and tax exemptions to help speed up the roll-out of electric buses by private operators.

Additionally, to lower the per unit cost of buses, local production will be scaled up. To keep costs in line, only plug-in charging will be deployed.

Some of the key public bus operators in Bangkok have announced plans to electrify the bus fleet in the capital city. By 2025, around 8,000 new electric buses will serve commuters in the Greater Bangkok region. Table 2 details the procurement plans of three key public bus operators in Bangkok.

Source: Southeast Asia Infrastructure Research

Bangkok E-Bus Programme

The programme was launched in partnership with the Government of Switzerland. It aims at electrifying the fleets of privately owned operators in the Bangkok Metropolitan Region with the objective of completely replacing the existing diesel-fuelled units.

The partnership between the two countries will create a carbon emissions trading arrangement whereby Switzerland-based KliK Foundation will purchase the carbon reductions generated by Thailand-based Energy Absolute under the Bangkok E-Bus Programme. The carbon credits earned will enable Energy Absolute to generate sufficient climate finance to replace the diesel buses with electric buses and to deploy a city-wide network of electric charging infrastructure.

Overcoming challenges

While the transition to clean buses presents numerous advantages, it is not without challenges.

High initial costs: A major obstacle is the high upfront costs of acquiring clean buses and of establishing the necessary infrastructure. In Singapore, electric buses cost 40 per cent more than traditional diesel buses, with batteries accounting for nearly 30–40 per cent of the total vehicle cost. Since lithium-ion batteries tend to depreciate over the lifetime of a public bus (17 years), these batteries will also need to be replaced, adding to the operating cost.

However, clean buses have lower operating costs than their diesel counterparts and once a supply chain is established, the cost of ownership is likely to come down in the future. For example, the Government of Indonesia is looking at establishing a local EV production hub that will make its fleet electrification plans cheaper.

Limited battery range: Electric buses typically have a limited range compared to traditional diesel buses. This can be a concern in ASEAN countries with long bus routes or in rural areas with less developed charging infrastructure. Figure 6 shows the average number of charges required by electric public buses in a week. Since many countries use only plug-in AC chargers, the downtime can be very long compared to that of diesel buses.

Source: Deloitte

Inadequate charging infrastructure: Establishing a reliable and extensive charging infrastructure network is crucial for the successful operation of electric buses. However, developing the necessary charging stations and infrastructure across the ASEAN countries can be challenging, requiring significant investment and coordination among various stakeholders.

Hydrogen as an alternative

Many of the issues faced by electric buses can be addressed by using hydrogen buses. The latter tend to have a longer range and a shorter refuelling time. Additionally, since fuel cell systems and tanks are lighter than batteries, hydrogen buses have larger passenger capacity.

Despite these advantages, deployment of hydrogen fuel cell technology in the ASEAN region is quite slow primarily due to higher prices, technical complications such as leakages, and costs associated with liquefying hydrogen. Moreover, it is easier for the existing grid system in the ASEAN countries to support the demand from electric vehicles.

Outlook

As technology continues to evolve and costs decline, clean buses will become more accessible and economically viable for cities across the ASEAN region. The governments in the region are committed to expanding their clean bus fleets and upgrading their existing infrastructure to accommodate the growing demand for eco-friendly public transport. Moreover, initiatives like regional collaborations and knowledge-sharing platforms within the ASEAN countries foster innovation, ensuring a sustainable and integrated public transportation network throughout the region.