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Malaysian government 2020 automotive policy

The National Automotive Policy 2020 (NAP2020) is expected to contribute RM104.2 billion to Malaysia’s gross domestic product (GDP) over the next 10 years.

The International Trade and Industry Ministry said the forecasted contribution is in line with its projection of total production volume of 1.47 million vehicles and total industry volume of 1.22 million vehicles by 2030.

The NAP2020 was launched on 21 February 2020 by the country’s Prime Minister, who was accompanied by International Trade and Industry Minister.

The ministry said the overall intended outcomes of the NAP2020 is an increase in research of new technologies; the creation of business and job opportunities, particularly for small and medium enterprises (SMEs); and the development of new manufacturing processes and value chains within the local automotive and overall automobile sector.

It was noted that the NAP2020 is a product of arduous research, extensive consultation, and detailed planning based on views and input from all industry players, academia and relevant government ministries and agencies. Overall, the NAP review received positive feedback from stakeholders.

The National Automotive Vision was developed as the overarching driver of the NAP2020, and subsequent policies to ensure Malaysia progresses in tandem with global demand.

This is to overcome any challenges of the local automotive sector and to make the automotive sector a major contributor to the development of the Malaysian economy.

The NAP2020 will further enhance the Malaysian automotive sector by transforming it into connected mobility.

The element of technology such as Next Generation Vehicle (NxGV), mobility-as-a-service (MaaS) and Industrial Revolution 4.0 are in line with disruptive trends that have emerged in global markets, the Minister stated.

The NAP2020 is a holistic policy that covers the comprehensive development of industry capacities including supply chain, human capital, indigenous technology, aftermarket, exports, infrastructure readiness, standards and regulations.

The implementation of NAP2020 has been broken down over several phases, transitioning based on the expected penetration and demands of critical components required based on trends and progression of vehicle technology.

The ministry said the NAP2020 will be spearheaded by the country’s exports market projections for new automotive parts and components (RM28.3 billion), complete built-up unit vehicles (RM12.3 billion) and remanufactured automotive parts and components (RM10 billion) by 2030.

It said the NAP2020 will have improvements in existing policy measures and implementation.

The participation of local companies in the domestic and global supply chain will be promoted, while other areas geared towards encouraging research and development and engineering activities and building capacity of the local workforce.

This is to support the national car projects and enhancing exports, investments and local production volume.

The NAP2020 is forecast to create a total of 323,000 new job opportunities primarily in the manufacturing, after-market and MaaS sectors within 10 years.

The forecast surged 82 per cent compared to NAP2014’s projection of the creation of 177,520 jobs.

The manufacturing sector has the highest number of forecasted job creation at 128,000, followed by MaaS (75,000), after-market (46,000), and new sectors introduced under the NAP2020 Internet of Things (IoT) at 44,000. Another 30,000 jobs are expected to be created under new employments in the robotics field.

The NAP2020 will focus on the development of ecosystems for the NxGV, MaaS and Industry 4.0 technologies while continuing its focus on enhancing the development of Energy Efficient Vehicles.

The policy entails the National Roadmap Automotive for the mobility value chain, technology, mobility talent, aftermarket and National Blueprint Automotive for mobility as a service, robotics and IoT.

It also envisions driving a policy that focuses on connected mobility, while enhancing Malaysia’s automotive industry in the era of digital industrial transformation.

The NAP2020’s vision includes integrating supply chains, local manufacturing, engineering capabilities, the latest technology trends, and sustainable development.

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