Malaysia publishes National Automobile Policy 2020

On February 21, 2020, Malaysian prime minister Mahathir announced National Automotive Policy (NAP) 2020 at the Ministry of International Trade and Industry (MITI). Under the NAP, which has been long awaited, the country aims to become the leader of Southeast Asia in manufacturing, engineering, technology development and sustainable development in the automotive sector. With a focus on Next Generation Vehicles (NxGV), Mobility as a Service (MaaS) and the Fourth Industrial Revolution (Industry 4.0), the NAP 2020 is designed to strengthen the ecosystem for automotive industry by enhancing the development of new technologies, creating business and employment opportunities especially for small and medium-sized enterprises, and developing new manufacturing processes and value chains.

The outline of NAP 2020 is as follows.

• • The target period is from 2020 to 2030
  • The main theme is connected mobility
  • Focuses on the following three directional thrusts.

1. 1. 1. Technology and Engineering: Develop critical component systems for NxGV, MaaS and Industry 4.0 (including the development of autonomous connected devices, Industry 4.0 technologies, lightweight materials and hybrid/fuel cell vehicles).
      2. Investment: Analyze the costs and benefits of specific proposals from investors and continue to provide custom-made investment incentive mechanisms based on the analysis.
      3. Market expansion: Introduce measures to increase exports not only in automobiles and parts, but also in the aftermarket/service sectors.

• • In order to pursue the thrusts, develop the following three strategies.
    1.  Value chain development – Enhance the value chain competitiveness of domestic manufacturers in the pursuit of high-quality products with advanced-technology that meet the future standards of vehicle manufacturers, and consumer needs.
    2. Human capital development – Foster domestic human resources to meet current and future demand for automotive and mobility technologies.
    3. Safety, environment and consumerism – Promote the adoption of new, more environmentally friendly technologies to address the issue of pollution and safety of vehicles. Introduce elements of consumer rights and protection (including maintenance and automotive recall processes).
  • Specific Roadmaps (or Blueprints) have been established for 7 areas (value chain, technology, talent, aftermarket, MaaS, robotics and IoT) as concrete action plans to achieve the strategies above.

The “ELV (End of Life Vehicles)” system has not been introduced this time though it has been discussed more than a few times. The transition of main themes of NAP so far, including NAP 2020, is as follows.

• • NAP 2006 (2006-2009): Supply Chain Integration (Reform of industrial structure)
  • NAP 2009 (2009-2014): Investment Promotion (Reinforcement of the capabilities and international competitiveness of the domestic automotive industry)
  • NAP 2014 (2014-2020): Green and Sustainability (Developing the country as the hub for Energy Efficient Vehicle)
  • NAP 2020 (2020-2030): Connected Mobility (Realizing digital industrial transformation)