The Government of Malaysia is targeting to increase the modal share of urban public transport to 50 per cent by 2040 as part of its Low Carbon Nation Aspiration 2040 plan. The existing share of public transport in Malaysia is 20 per cent.

Additionally, the plan sets a target of achieving 38 per cent of electric vehicle (EV) share by 2040. In 2021, 274 battery-electric passenger cars were sold in Malaysia, however, this number is expected to increase with the launch of duty exemption incentives for EVs under Budget 2022.

The government is also targeting an increase in the share of alternative and lower carbon fuels in heavy vehicles and marine transport. Biofuel content will be increased to B30, up from the B5 standard implemented in 2018.