The vision to make Malaysia an automotive export hub is becoming increasingly achievable, thanks to the government’s robust policies such as the National Automotive Policy 2020 (NAP 2020) and the New Industrial Master Plan 2030 (NIMP 2030). Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz highlighted key initiatives that support this vision, including the National EV Project led by Perodua, Proton’s electric vehicle production, and the development of the Automotive High-Tech Valley (ATHV) by DRB-Hicom.
With the support of all industry players and key stakeholders, Tengku Zafrul expressed confidence that Malaysia will continue to attract investments that drive growth for its people and businesses. The NAP 2020, originally launched for the period 2020 to 2030, is now approaching its halfway mark. Therefore, Miti, together with MARii, will be conducting a midterm review of NAP 2020 to incorporate rapid advancements in technology, particularly in energy-efficient vehicles (EEV) and electric vehicles (EV).
The goal of the review is not only to stay relevant but also to strive for excellence in promoting a thriving Malaysian automotive ecosystem. Tengku Zafrul assured that the consultation process will be comprehensive, involving key stakeholders to address industry concerns and capitalize on emerging opportunities. The vision of NAP 2020 is to position Malaysia as a regional manufacturing powerhouse for next-generation vehicles (NxGV), EV, and EEV.
Furthermore, NIMP 2030 will drive the automotive industry forward by transforming Malaysia’s industrial landscape to support high-growth and high-tech industries. Malaysia is actively strengthening its E&E, chemicals, and automotive manufacturing capacity to support the supply side of the EV value chain, including the development of affordable EVs.
The automotive industry in Malaysia is currently the second-largest in Southeast Asia, with a Total Industry Volume of 799,731 units, ranking globally at number 23 in 2023. In the first quarter of 2024, the EV market continued its development, with nearly 11,000 units of battery electric vehicles and hybrids sold. The automotive sector plays a crucial role in the nation’s economy, attracting substantial multi-billion ringgit investments from both local and foreign investors, as well as aggressive business expansions.
In terms of talent development, Miti has established a pipeline to support the growth of skilled, STEM, and TVET talent to cater to high-tech industries, including automotive. The minister highlighted the first cohort of 94 workers who graduated from the upskilling program by Malaysia Productivity Corporation, with 28 cohorts planned for 2024. This continuous program aims to provide a robust talent pipeline for tech-based industries like automotive.
The growth in the automotive industry will be further supported by regional trends that promote economic growth, ecosystem development, consumer demand, and the introduction of new models by automotive OEMs. In 2023 alone, 67 new models were launched, indicating the industry’s growth. Visiting Malaysia’s automotive hubs in Shah Alam, Rawang, Tanjung Malim, Gurun, or Pekan showcases the rapid growth and strong vibes of the industry.
In conclusion, Malaysia’s vision to become an automotive export hub is well within reach, with the government’s proactive policies and initiatives driving the industry forward. By staying relevant, striving for excellence, and fostering a robust talent pipeline, Malaysia is poised to become a regional manufacturing powerhouse for next-generation vehicles, EVs, and EEVs.