As we step into 2025, transportation and fleet management landscape is evolving faster than ever. From the rise of electric vehicles (both private and fleet users), adoption of telematics & digital fleet solutions, to adoption of AI and automation, fleet operators are embracing innovations to optimize operations, reduce operating costs and increase driver safety.
With increased regulatory and enforcement pressures due to recent very public cases of accidents involving heavy vehicles, fleet operators must adapt to stay competitive, safe and resilient.
We realize that sometimes it can be difficult to get a gist of upcoming industry changes. In this blog, we will explore key trends in Malaysia that are shaping fleet management this year and how they are set to impact the industry. Let’s get the wheel rolling!
Trend 1: Increased scrutiny and enforcement of heavy vehicles for safer roads
The Malaysia Ministry of Transportation is implementing several measures in 2025 to reduce fatal accidents involving heavy vehicles.
Several measures have been identified such as:
High-speed – Weight in Motion (HS-WIM) system to start operating by Q3 2025. This system is able to detect overloaded vehicles and will be placed strategically in high-risk locations and major highways. MOT claims that this technology allows enforcement against overweight vehicles can be carried-out in real-time without the vehicle stopping for weighing.
Revision of transport-related laws: MOT is evaluating to revise Commercial Vehicle Licensing Board Act of 1987, the Land Public Transport Act 2010 and Road Transport Act 1987. The revision is necessary to enact rules for pick-up trucks & lorries such as:
- Operator to guarantee safe transportation of products (within allowable bounds)
- Consignees to be responsible for involvement in overloading offences
- Imposing fines depending on overloading percentages
APAD ICOP (Industrial Code of Practice) to be strengthened to raise safety awareness among heavy vehicle operators.
Review of existing policies on ‘REBUILT’ heavy vehicles to ensure only those meeting stringent safety and quality standards are allowed on the road. ‘Rebuilt’ vehicles are those assembled locally using used imported components, yet registered as NEW in Malaysia. The reassessment of ‘Rebuilt’ vehicle policy will be undertaken in collaboration with Ministry of Investment, Trade and Industry (MITI).
Improvement to the Automated Awareness Safety System (AWAS) which will now calculate average speed between checkpoints. This method will allow for a thorough speed monitoring which will promote safer driving practices and lower the number of accidents.
Periodic inspection protocols for heavy vehicles to be improved, with an emphasis on crucial safety elements such as tires and brakes. More vehicle inspection operators will also be added to complete with PUSPAKOM, in a move hoped to provide more effective inspections.
Trend 2: Focus on Driver Retention and Training
One of the most pressing challenges for fleet managers in 2025 is the ongoing driver shortage. With high turnover rates, and growing demands on drivers, retaining skilled professionals and attracting new talent has become a top priority.
Replacing a driver can be expensive, up to tens of thousands of ringgit when we include the cost of recruitment, onboarding, training and unproductive period due to downtime. High driver turnover disrupts operations and increases downtime that directly impacts the company’s bottom line.
By prioritizing driver retention and training, fleets not only mitigate the risks of a shrinking workforce but also build a more reliable, efficient, and competitive operation. In 2025, drivers are more than just operators—they’re valuable partners in a fleet’s success.
Trend 3: Greater integration of Telematics, IoT, AI and Automation systems
A trend that shows no signs of slowing down, vehicle telematics will continue to drive efficiency through real-time location tracking, operational tools, predictive maintenance and driver behavior monitoring.
While the upfront cost for telematics may increase slightly, the long-term savings from reduce fuel consumption, improved driver safety and minimized downtime will outweigh these costs.
Increased use of Advanced Driver Assistance System (ADAS)
By using Advanced Driver Assistance System (ADAS) supplied by KATSANA, it will help reduce driver stress and fatigue, creating safer and comfortable working conditions.
Plus, with additional data-driven insights on driver behavior enabled through KATSANA Telematics solutions, fleet operators are able to track driver performance and provide valuable feedback to the drivers.
To make it easier for fleet operators to start using KATSANA, we are excited to announce a new 2025 subscription package. Fleet operators can now readily use KATSANA fleet management solutions without having to fork out any upfront capex. Reach out to our sales consultants to know more about this offer.
Tell me more – 2025 NEW package
Trend 4: Increased adoption of Electric Vehicles
Fleet operators will increasingly transition to electric vehicles (EVs) as governments and organizations push for decarbonisation. Electric vehicles (EVs) are no longer a futuristic concept—they’re becoming a mainstream solution for fleets worldwide. The shift toward EV adoption is driven by advancements in technology, stricter environmental regulations, and the need for cost-effective, sustainable operations.
Take a look at the examples of EV transitions below.
Government of Malaysia is planning that 50% of new government cars are to be EVs by 2025 as stipulated by The Natural Resources and Environment Sustainability (NRES) Ministry. (December 2024)
POS Malaysia will receive 1,092 more units of electric motorcycles to boost its sustainability initiative. Pos Malaysia group chief marketing, communications and sustainability officer Fiona Liao said the fleet expansion underscored the company’s commitment to full electrification of its first and last mile delivery fleet by 2030, in line with its goal of Net Zero by 2050. (November 2024)
Gentari’s Vehicle-as-a-Service (VaaS) offering deployed over 3,600 EVs across Malaysia, India and Indonesia, clocking in over 44 million electric kilometres driven and contributing to carbon avoidance of around 1,357 tonnes of carbon dioxide equivalent (tCO2e). (January 2025)
Volvo Trucks starts selling electric trucks in Malaysia. Volvo Trucks is aiming for 50% of global sales of new Volvo trucks to be electric in 2030. The company has so far sold around 5,000 electric trucks in about 40 countries around the world. (August 2023)
Check out KATSANA’s EV Fleet Management Platform.
Malaysia Tax incentives to adopt EVs
Full exemption of import and excise duty for imported completed built up EVs until Dec 31, 2025.
Full exemption of import and excise duties and Sales Tax for domestically produced EVs until Dec 31, 2027.
Income tax allowances or pioneer status for companies manufacturing Energy Efficient Vehicles (EEV) including EVs and related components.
Road tax exemption for EV users until end of 2025.
Green Investment Tax Allowance for Charging Point Operators that meet the tax incentive criteria (100% Investment Tax Allowance for 5 years).
Individual income tax rebates of up to RM2,500 on EV charging facility expenses and cost of manufacturing EV charging equipment.
Tax deductions for EV rental costs.