KUALA LUMPUR, Feb 21 — The implementation of the National Automotive Policy 2020 (NAP 2020) is expected to contribute RM104.2 billion to the country’s gross domestic product (GDP) by 2030, according to the Ministry of International Trade and Industry (MITI).
Launched by the Prime Minister Tun Dr Mahathir Mohamad, the 10-year policy marks Malaysia’s move towards becoming a regional leader in the automotive sector, particularly in the areas of manufacturing, engineering, technology and sustainable development, in line with the National Automotive Vision.
In a statement today, MITI said the implementation of NAP 2020 is expected to create a total of 323,000 jobs by 2030, with total production industry volume for passenger and commercial vehicle targeted at 1.47 million units and total industry volume at 1.22 million units.
The policy aims to boost research of new technologies, creation of business and jobs opportunities particularly for the small and medium enterprises (SMEs), as well as the development of new manufacturing processes and value chains within the local automotive and overall mobility sector.
“The manufacturing and aftermarket sectors’ ecosystem within the automotive and overall mobility industry would be enhanced, focusing on Next Generation Vehicle (NxGV), Mobility-as-a-Service (MaaS) and Industrial Revolution 4.0.
“Besides aligning with current technological advancements, the NAP 2020 will also have improvements in existing policy measures and implementation,” it said, adding that the policy will also promote the participation of local companies in the domestic and global supply chain.
The NAP 2020 will also focus on encouraging research and development and engineering activities; building capacity in the local workforce; providing support for the national car projects as well as enhancing exports, investments and local production volume.
MITI said NAP 2020 has three directional thrusts, namely technology and engineering, investment and market expansion.
The policy is centered on three strategies — value chain development, human capital development as well as safety, environment and consumerism to promote the adoption of new, more environmentally friendly technologies.
The implementation of the NAP 2020 are detailed in seven roadmaps/blueprints, which will be continuously reviewed and updated to keep pace with disruptive and evolving global trends, technologies and demands, said the ministry.
“These numbers are not only impressive but also a testament to how a developing country such as Malaysia could be a strong player in a concentrated industry such as this in the last three decades,” he said.
The premier added that another important feature of the NAP 2020 is the continuous endeavour towards sustainable production where across the globe, the circular economy model is becoming the norm and the success of an industry or a sector is now being measured by, among others, the carbon footprint.
“The automotive industry has gone through the same phases of the industrial revolution. From coal to fuel-powered engines, the next generation vehicles are now engineered by powertrain of hybrid, electric and hydrogen fuel cells.”
The promotion and adoption of green technology for Energy Efficient Vehicle and the Next Generation Vehicles he said, will need to be supported by the right ecosystem and infrastructure for it to be sustainable and attractive.
“Facilities for end-of-lifecycle battery cells and waste management and treatment will be enhanced, if not established, which will then complete the entire ecosystem for not only the automotive industry but also for other related industries,” said Dr Mahathir.
Dr Mahathir stressed that all these high-tech infrastructure and facilities will essentially help reduce the cost of production while completing the sustainable production cycle in the automotive industry as well as in the entire manufacturing sector in Malaysia.
“I am glad to know that the NAP 2020 will have plans to realise this through the designation of a dedicated industrial zone for circular economy business practices for the automotive industry,” he said.
The Prime Minister also reminisced when the first national car was launched in 1983.
He said the first national car aimed to turn Malaysia into a regional manufacturing powerhouse, shifting from a resource-rich country whose international presence depended much on international trade of agriculture commodities with a focus on the manufacturing sector.
“When we started this industry more than 35 years ago, many were sceptical about our aspiration. But today, Malaysia has become one of the most competitive markets for the automotive industry, and it has gone through many phases of development with many success stories to be told,” he said.
He added that the automotive sector is the logical choice as it was able to provide far greater economic spill-overs and create more job opportunities for the people.
With industrialisation, other related manufacturing sub-sectors were also created and grew in tandem with increased demands for raw materials such as rubber, steel, plastics and petrochemicals, he said.
“Apart from that, industrialisation opened up more services-related sectors and provided high-value downstream business and employment opportunities such as in the areas of wholesale, retail, after-sales services and marketing,” said the Prime Minister.
The automotive industry according to the Prime Minister, goes beyond mere car manufacturing as it also spurs the development of new technologies that will in turn complement other industrial sectors.
“The technologies embedded within the car provide immense opportunities for related industrial sectors to break new grounds. Linkages to both upstream sectors such as steel, plastics and rubber and the downstream value chain demonstrate that the automotive industry is one of the most important and strategic contributors to the overall growth of the manufacturing sector,” he said.
Meanwhile, in supporting the green technology approach, Dr Mahathir said that starting Jan 1, 2020, palm biodiesel has been upgraded from B10 to B20 category in the transport sector and this will continue to be enhanced to B30 before the year 2025 or even earlier.
To facilitate the implementation, NAP 2020 will provide supporting measures including the development of standards for testing and research to support the increase in blending of palm oil biodiesel.
“All the emphasis under the NAP 2020 are our commitment to the industry that we too are moving in the same direction with other major countries in keeping up with global trends, be it technologically or environmentally,” he said.
— Bernama
