Malaysia released National Automotive Policy 2020

The implementation and promotion of the NAP2020 is committed to making Malaysia  become a leader in automotive industry within the ASEAN region, hence strengthening international cooperation in the development of global automotive industry. The launch of the NAP2020 provides more competitive investment opportunities and creates a more favorable investment environment for Malaysia. Under a more comprehensive mechanism strategy, Malaysia welcomes more Chinese enterprises to invest and cooperate in local manufacturing, the integration of new technology elements, sustainable development and other aspects, creating new opportunities for the economic development of China and Malaysia, not only focus on the automotive industry, but also include the construction of mobility ecosystem.

Background

The National Automotive Policy (NAP) was first introduced in 2006 under the Third Industrial Masterplan (IMP3) 2006-2020 to transform the automotive industry as one of the important components of the economy, It outlined key direction and strategies in preparing the local automotive players towards a more competitive and sustainable automotive industry. In 2009, the second version of the policy was introduced, to focus on enhancing the capabilities of the Malaysian automotive industry and create a more conducive environment for investments.

A third version was introduced in 2014, named NAP 2014 which placed emphasis on green initiatives, market expansion, as well as enhancement of the entire automotive ecosystem through development of technology, human capital and supply chain. The ultimate objective of the NAP2014 was to establish Malaysia as a regional Energy Efficient Vehicle (EEV) hub by the year 2020.

The fourth version - the NAP 2020 envisions to enhance Malaysia’s automotive industry in the era of digital industrial transformation from 2020 to 2030, thus enabling Malaysia to realize Connected Mobility.

National Automotive Policy 2020

The introduction of the National Automotive Policy (NAP) 2020 which is developed by the Ministry of International Trade and Industry will focus on ensuring that the domestic industry continues to be competitive by enhancing current policy measures and introducing new advance technology elements namely Next Generation Vehicle, Mobility as a Service and Industrial Revolution 4.0 and in other areas.

The NAP 2020 is an enhancement of NAP 2014, aiming to make Malaysia a regional leader in manufacturing, engineering and technology as well as to ensure a sustainable development of the local automotive industry. This will facilitate the required revolution and optimal integration of the local automotive industry into regional and global industry networks.

The Vision also aims for the local automotive industry to continue to be aligned with the latest global technological trends through the application of IR4.0 technologies towards moving into connected mobility phase of development in Malaysia.

National Automotive Vision

Malaysia envisions to become a regional leader in manufacturing, engineering, technology and sustainable development in the automotive sector.

The NAP 2020 supports the development of existing or new Malaysian Vehicle Project as well as the participation of any vehicle producing company in realizing the National Automotive Vision.

Under the National Automotive Vision, Malaysia aims to become a regional leader in manufacturing, engineering, technology and sustainable development in the automotive sector.

The Objective

  • Develop NxGV technology ecosystem to make Malaysia the regional hub.

  • Expand the participation of domestic automotive industry in the sector of MaaS.

  • Ensure the domestic automotive industry is better equipped with new automotive paradigm closely related to IR4.0 development.

  • Ensure the entire ecosystem benefits from the spin-off of NxGV implementation.

  • Reduce vehicle carbon emission by improving fuel economy level in Malaysia by 2025.

NAP 2020 Framework

NAP 2020 maintains and enhances the NAP 2014 framework through three (3) directional thrusts and three (3) strategies that introduce new technological elements namely NxGV, MaaS and IR4.0

Three (3) directional thrusts are:

i. Technology and Engineering;

ii. Investment; and

iii. Market expansion.

Whereas, the three (3) strategies are:

i. Value chain development;

ii. Human capital development; and

iii. Safety, Environment and Consumerism

The industry has become increasingly fraught with uncertainties due to global scenarios. Hence, through the review of NAP2020, the Government has transcended the issues and identified crucial plans to focus on growth and investments towards technology developments and industry transformation in Malaysia.

New elements are also added to NAP2020 focusing on Next Generation Vehicles (NxGV), Mobility as a Service (MaaS) and Industrial Revolution 4.0 (IR4.0).

The introduction of new elements in technology in NAP 2020 is in line with global trends and is crucial in ensuring the local automotive industry continues to grow and remain competitive. With specific measures to promote technology development in NxGV, MaaS and IR4.0 in the domestic automotive sector, Malaysia will be able to market its automotive products at the global level.

In addition, the new technological advancement in NAP 2020 will create new opportunities that are not only focusing on the automotive sector but also the services sector which is made ready in the mobility ecosystem. The income of the nation and the people is also expected to increase if the local industry takes advantage of the new opportunities created.

The introduction of new high technology in NAP 2020 enables Malaysia to become a leader in automotive industry within the ASEAN region, hence strengthening international cooperation in the development of global automotive industry.