Strategic directions for the future of NGV Industry
By Dr. Cheah Chan Fatt
In July 2025, the Malaysian government intends to cease the operation of Natural Gas Vehicles (NGVs). This decision signifies a substantial shift in the nation’s approach to transportation and energy. It presents both challenges and opportunities for the NGV industry.
From a challenging perspective, the industry must adapt to new regulations and transition away from a technology that has long underpinned its operations. This transition may have significant implications for businesses and employees who rely on NGVs for their livelihoods.
Conversely, this shift engenders numerous opportunities. The NGV industry can leverage its expertise and infrastructure to explore emerging technologies, such as electric vehicles (EVs) and hydrogen fuel cells. By prioritizing research and development, companies can innovate sustainable transportation solutions, including hybrid systems that integrate natural gas with other clean energy sources.
The industry must support its workforce throughout this transition. Implementing training programs designed to equip employees with new skills will prepare them for alternative roles in the evolving energy sector. Collaboration with educational institutions and training centres will ensure workers acquire the competencies for future employment opportunities.
Furthermore, the NGV industry should actively engage with policymakers to influence the formulation of future transportation regulations that promote sustainable growth. By collaborating with governmental bodies and other stakeholders, the industry can help establish incentives and frameworks that encourage the adoption of cleaner energy technologies while ensuring an equitable transition for all affected parties.
In summary, while the cessation of NGV operations presents significant challenges, it also creates opportunities for innovation and growth in a more sustainable direction. Through careful strategic planning, investments in new technologies, and a commitment to workforce training and support, the NGV sector can effectively navigate this transition and emerge resilient.
As the industry pivots towards electric vehicles, it can capitalize on its existing resources and expertise in manufacturing and maintenance, aligning with the global trend toward cleaner energy and reduced emissions. Additionally, exploring hydrogen fuel technology, recognized for its sustainability and biofuels derived from organic materials, provides further avenues for renewable options.
The NGV sector may also assist current users in transitioning to alternative fuels by offering services that adapt existing vehicles to accommodate electric or hydrogen systems. Technology enhancements, especially regarding battery longevity and fuel efficiency, are vital for maintaining competitiveness in an evolving market.
Close collaboration with government agencies will be imperative to facilitate a smoother transition. Partnering with stakeholders in the energy sector may result in a more seamless adaptation. While this shift may pose challenges for employees within the NGV industry, proactive measures can mitigate their impact. Companies should implement training initiatives to educate employees about the technologies utilized in electric vehicles and hydrogen fuel systems. Workers can adequately prepare for emerging job opportunities in these developing fields by partnering with educational and vocational institutions.
Support for job placement, including career counselling and networking opportunities, will be instrumental in aiding displaced workers in securing new positions. Financial assistance, such as scholarships, may alleviate financial burdens during this transition. By collaborating with government agencies and industry organizations, the NGV sector can facilitate this transition process for its workforce.
Trade unions will play a vital role in advocating for workers’ rights and ensuring access to necessary resources. They can negotiate with employers and government representatives to secure benefits, such as severance packages and retraining opportunities for affected employees.
Unions can also articulate workers’ concerns in discussions regarding future policies. By partnering with educational institutions and industry leaders, they can contribute to developing training programs that align with job market demands. Moreover, they can advocate for financial support, including scholarships for further education.
Finally, unions can foster a supportive environment by providing counselling and mental health resources to assist employees during this transitional period.
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The author is a Research Fellow at the Ungku Aziz Centre for Development Studies (UAC), Universiti Malaya.
