Malaysia retail fuels long-term outlook

In the last decade, the number of passenger cars in Malaysia has almost doubled to reach 14 million vehicles. At just over 400 cars per thousand people in 2020, the level of car ownership in Malaysia is the highest of the developing economies in the region. We forecast that car ownership will continue rising to over 500 cars per thousand people - or 21 million units - by 2050. While gasoline-engine vehicles will retain a dominant position, the combined share of electric and hybrid vehicles is expected to reach around 25% of the passenger vehicle stock by 2050. The rise of alternatively-powered vehicles sees gasoline demand stagnate post-2030 while diesel demand is forecast to grow until the late 2040s. Malaysia is one the world’s largest producers of palm oil – a feedstock for biodiesel. The government has introduced several biofuel blending targets for diesel and aims to increase biodiesel blends from 10% to 20% by the end of 2022.