Yesterday the Minister of Housing and Local Government, Nga Kor Ming said the government is considering the exemption of local authority parking fees (PBT), specifically for electric vehicles (EV). This according to Nga is to increase the use of EVs in urban areas. He used the example of EVs in London not being subject to road congestion charges when entering urban areas like fossil fuel vehicles (ICE).
Since yesterday there have been many negative reactions from the public with the suggestions given by Nga. Average says it's another idea that only benefits the rich and it's a concession that EV owners never asked for. I personally feel that this suggestion is ill-advised but let me explain why through the five reasons below.
Too Many Releases Already
EV owners already receive many reliefs from the government. They do not have to pay road tax until 2026. After that the road tax charged is lower than ICE vehicles with the same price. Purchased vehicles are also subsidized because they are not subject to import duty. Then for installing chargers at home, tax relief is also given under Budget 2024.
Is this still not enough to encourage the purchase of EVs among Malaysians? How much Ringgit can EV owners save a year if they don't have to pay for PBT parking? The answer is lower than the savings already enjoyed now.
Future Charging and Repair Costs
EVs should in my opinion pay for more expensive parking instead of free. This is because PBT now needs to increase the number of street chargers to meet EV charging needs in the future. EV owners can then enjoy special parking just for them with a built-in charger. This extra payment is a premium to get public parking that can only be used by EVs. Think of it like premium valet parking at the mall.
One thing I have never seen discussed in Malaysia is how EVs increase road damage and add burden to existing parking structures. The British Parking Association (BPA) issued a warning that the increasing number of EVs could cause the collapse of older multi-storey car parks. EVs are on average between 300-400 kg heavier while parking buildings are built according to the weight of vehicles from the 60s-70s. Existing structures need to be upgraded to prevent tragedies from happening.
A study from the University of Edinburgh in 2022 found that EVs increase damage such as potholes between 20-40% also due to their weight. PBT in the future will need to do road maintenance work more often. More expensive parking fees by EV owners who are mostly wealthy can be put into the EV impact fund in the future starting from now.
EV Owners Can More Than Afford
Based on personal anecdotal data, EV owners in Malaysia are those in the T10 category. Only these people can buy an EV priced up to RM 700,000 like the Mercedes EQS SUV in Malaysia. These people have enough money to buy luxury cars and more expensive parking will not suddenly mean they can no longer go on holiday to London every Ramadan.
Even if they are impressed, they won't die because they can't eat at Nobu New York, watch a concert at The Sphere Vegas or shop for luxury goods at TRX. Ordinary people who can only afford ICE will be faced with the floating price of RON95. I hate to be Captain Ketara, but it's the B90 marhaen who should be given free parking clearance by the government.
The Wrong EV Incentive
Why when talking about EVs, the government gives excessive emphasis to the ownership of personal electric vehicles? Why is there no incentive for free parking at LRT, MRT, Monorail and KTM Komuter stations to ride these four most efficient EVs? All three carry more passengers per day than the 41,158 EVs currently operating on Malaysian roads. Encourage public transport instead of private transport.
With incentives to ride public transport, private EVs and ICEs can be reduced on the road. The problem of traffic congestion and at the same time pollution by ICE can also be addressed through a two-pronged solution.
To YB Nga Kor Ming, please consider my suggestion because Malaysia will not reach a civilized level if the people who do not need help are given help that they never asked for.