Malaysia retail fuels long-term outlook

Road fuel demand in Malaysia is on the rise. The number of passenger cars has increased by around 40% over a decade to reach more than 14 million vehicles in 2023. At just over 425 cars per thousand people in 2023, 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 around 500 cars per thousand people - or around 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 60% 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 the world’s second-largest palm oil producer, which is extensively used as a biofuel feedstock. To increase biodiesel blending rates, B20 is being rolled out in several phases.