03/04/2026

Editorial T: 03-7784 6688 F: 03-7785 2625 E: sunbiz@thesundaily.com Advertising T: 03-7784 8888 E: advertise@thesundaily.com

SCAN ME

FRIDAY | APR 3, 2026

EV adoption in M’sia set to pick up as fuel costs surge o Battery electric vehicles have become a very attractive option, says deputy minister Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

Exclusive offers from boutique premium airline Berjaya Air at Matta Fair 2026 PETALING JAYA:

Berjaya Air has intro duced a new era of regional air travel, redefining the journey with its exclusive 26 seat ATR 72-600 Busi ness Class aircraft, designed for discern ing travellers seeking comfort, privacy and a seamless premium experience.

PETALING JAYA: Electric vehicle (EV) adoption in Malaysia is set to accelerate as geopolitical uncertainties driving fuel costs higher make battery electric vehicles (BEV) a more attractive option for consumers. Deputy Investment, Trade and Industry Minister Sim Tze Tzin said that against the backdrop of the Middle East crisis and the surge in diesel prices, BEVs have become a very attractive solution for road users. “With the Iran war and the Middle East crisis, a lot of opportunities present them selves, especially in the BEV sector and energy-efficient vehicles, as oil prices are no longer stable,” he told reporters at the launch of UMW Toyota Motor’s BEV lineup yesterday. Sim said Malaysia, like all other countries, is subject to global conflicts and sudden surges in oil prices, making BEVs a strong value proposition, especially with Toyota and other manufacturers. “Consumers will start thinking about trying to save costs, and this is where there is a good opportunity for them to consider using BEVs in future,” he added. Sim pointed out that EV adoption in the country has grown significantly from just 55 units on the road in 2020 to about 45,000 today, reflecting rapid growth within a span of five to six years. He said Malaysians have long been comfortable with very low petrol prices due to heavy government subsidies, but this is changing amid the Middle East conflict. “For example, this month, the government is subsidising almost RM4 billion on RON95 and RM2 billion on diesel for Sabah and Sarawak.” Sim said the RM6 billion is a very high subsidy burden and the pressure is increasing for the government, as elevated oil prices continue to KUALA LUMPUR: Malaysia Aviation Group (MAG) is moving into its next phase of growth after four straight years of operating profits, but a deepening global crisis is set to test how sustainable that recovery can be. MAG president and group CEO Captain Nasaruddin A. Bakar said the airline is shifting from stabilisation to expansion in 2026, backed by stronger operational discipline and improved financial footing, even as external risks intensify. “The key question is not whether recovery will come, but whether we are ready when it does,” he said at a media briefing yesterday. The cautiously optimistic outlook comes as the group grapples with surging fuel costs and geopolitical tensions, particularly in the Middle East, which continue to disrupt flight routes, inflate operating expenses and cloud demand visibility. Fuel prices have risen by as much as 140% and now account for close to 40% of MAG’s total operating costs, making it the single biggest pressure point for the airline this year. Despite this, MAG said it has secured sufficient fuel supply through contractual arrangements with both domestic and international suppliers, allowing operations to continue without disruption for now. Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

we must strengthen our ecosystem, develop skilled talent and remain competitive in attracting high-quality investments.” Sim also said Malaysia welcomes invest ments that introduce new technologies while enhancing local capabilities, positioning the country as a key automotive and mobility hub in the region. At the event, UMW Toyota Motor (UMWT) introduced three new models of BEV in Malaysia – Toyota bZ4X, Urban Cruiser and Hilux BEV. “Malaysia’s automotive industry has grown into a highly integrated ecosystem connecting manufacturers, suppliers, engineers and technology specialists across the country. “As the global industry transitions toward cleaner mobility, investments that introduce new technologies while strengthening local capabilities will help ensure Malaysia remains competitive as an automotive hub in the region,” said Sim. UMW Toyota Motor president Datuk Ravindran Kurusamy said Toyota’s approach to electrification recognises that the transition toward lower emissions mobility must reflect how vehicles are used across different markets. “For Malaysia, mobility carries both economic and social importance. Vehicles here support far more than urban com muting. They connect communities across long distances and support industries that rely on dependable transport as an essential tool of productivity. “Electrified mobility must therefore be introduced at the right time, in ways that genuinely benefit Malaysians and support how people and industries move every day.”

raise the cost of sustaining fuel subsidies. “We don’t know how long the conflict will last or how oil prices will move. That’s why more consumers will realise that heavily subsidised petrol is not sustainable in the long term and may start thinking, why not shift to more affordable electric vehicles, which in the long term are actually cheaper than petrol. “This change of mindset is important for everyone to start adopting more environ mentally friendly BEVs, which are not only about cost but also help Malaysia achieve net zero by 2050. This is a good value proposition for everyone,” he remarked. At the same time, Sim said, Malaysia’s EV ecosystem is steadily maturing, supported by infrastructure expansion and industry parti cipation. More than 5,000 public charging points have been deployed nationwide, with a national target of 10,000 chargers under way to improve accessibility and reduce range anxiety for consumers. Sim said the automotive sector continues to play a critical role in Malaysia’s industrial development, extending beyond vehicle assembly into higher value activities such as engineering, supplier development and technology transfer. “The automotive sector is not simply about assembling vehicles. It drives high-value economic activity and strengthens our local capabilities.” Sim noted that electrification, digital technologies and new energy systems are reshaping the global automotive industry, presenting both opportunities and responsi bilities for Malaysia. “As the industry evolves,

has held up well so far, with load factors reaching up to 90% on key routes including London and Auckland. The group has also benefited from a spillover of passengers rerouting due to disruptions affecting some Middle Eastern carriers. MAG has responded by increasing frequencies on selected sectors, including adding extra flights to Europe to capture displaced demand. However, Nasaruddin cautioned that demand could soften if the crisis drags on and begins to weigh on ticket affordability and consumer sentiment. “We are seeing strong demand today, but we will continue to review and adjust depending on how the situation evolves.” Looking ahead, MAG is proceeding with fleet expansion plans, expecting 10 additional aircraft deliveries in 2026 after taking in 24 new aircraft last year, as it positions itself to capture future growth. At the same time, the group is maintaining investments in product and customer ex perience, signalling confidence in longer-term demand recovery despite short-term headwinds. “It is important that we continue to invest, even in a challenging environment, while remaining agile in how we respond,” Nasaruddin said. The airline is also exploring longer-term structural shifts, including accelerating efforts in sustainable aviation fuel as part of its broader sustainability strategy. Berjaya Air is showcasing its premium travel experience at Matta Fair 2026, which is being held today until Sunday at the Malaysia International Trade and Exhibition Centre, Kuala Lumpur. Visitors to Level 3, Hall 9 to 11, Booth 3N32 will enjoy an exclusive 25% discount on flights, available only during the three-day fair. Berjaya Property Bhd group CEO Syed Ali Shahul Hameed said, “Berjaya Air represents a strategic extension of our integrated ecosystem, where premium travel meets curated desti nation experiences. This initiative not only enhances accessibility to our key destinations, but also reflects our commitment to enriching Malaysia’s tourism landscape while creating meaningful value and memorable experiences for travellers across the region.” Positioned as Malaysia’s boutique premium airline, Berjaya Air offers a refined alternative to conventional commercial flights, delivering a more intimate and curated journey across selected leisure destinations including Koh Samui, Redang and Medan. Berjaya Air is offering a limited-time pro motion of 20% off all flights. Bookings can be made using the promo code FLYBERJAYA via the official website, valid for travel until Sept 30, with bookings open until June 30. Travellers will receive an exclusive accom modation voucher worth up to RM200 at Berjaya Hotels and resorts, reinforcing the group’s integrated approach to premium travel and hospitality.

MAG pivots to growth mode as global crisis tests aviation recovery

Nasaruddin (left and Boo at a press conference on Malaysia Aviation Group’s 2025 financial performance held in Kuala Lumpur yesterday. – BERNAMAPIC

creasingly unpredictable market. Against this backdrop, MAG delivered a stronger financial performance in 2025, with net profit more than doubling to US$137 million from US$54 million a year earlier, marking its fourth consecutive year of operating profit. Revenue rose 6% year-on-year to RM14.5 billion, supported by sustained travel demand, improved yield management and disciplined capacity deployment. While near-term risks remain elevated, demand

However, restrictions in certain countries have forced the airline to adapt by uplifting fuel from alternative stations to maintain flight continuity. To cushion volatility, the group has hedged about 36% of its fuel requirements in the first quarter and around 50% in the second quarter, balancing protection against price spikes while avoiding overexposure should prices fall. Group chief financial officer Boo Hui Yee said the hedging strategy is structured to manage both upside and downside risks in an in