Latest news with #NAP2020
The Star
24-05-2025
- Automotive
- The Star
Steering through automotive supply chain shifts: Malaysia's resilience in a volatile world
HOW time flies. We are already a quarter of the way into the 21st century. In that time, the world has endured a series of shocks. A global financial crisis, and several regional ones. Pandemics and epidemics – one of which brought economies to a standstill. Major geopolitical conflicts, each with deep humanitarian costs. What used to feel like rare events are now reminders that volatility has become our era's default setting. The past few years have taught us a hard truth: The world is no longer predictable. What once were isolated incidences, are now sustained events that reveal how deeply interconnected – and exposed – our global systems have become. Few industries reveal this truth more starkly than the automotive sector. In Malaysia, this reality came into sharp focus for the automotive industry. Long considered a stable contributor to our gross domestic product (GDP) and a core part of the Asean ecosystem, the sector has had to rewire how it thinks about resilience, localisation, and its place in an increasingly fragmented global economy. An industry interwoven with the world Automotive manufacturing has always relied on a cross-border choreography – one in which a component made in Vietnam is shipped to Thailand, paired with software from Japan, and finally assembled in Malaysia. The efficiency was remarkable. But when just one point fails, the entire system falters. Malaysia's automotive players have felt these ripples firsthand. Not from direct tariffs or embargoes, but from the shifting strategies of global suppliers and logistics networks. Suddenly, questions that were rarely considered – 'What if a key supplier halts operations?' – have moved to the centre of boardroom conversations. Shifting from cost to continuity Where once the goal was to lower cost, today it's to lower risk. The automotive sector is beginning to pivot: exploring dual sourcing, reshoring critical parts, and embracing more regionalised models of supply. Supply chain resilience is no longer a 'nice-to-have' – it's a prerequisite. To support this shift, Malaysia's National Automotive Policy (NAP 2020) has laid important groundwork. It emphasises the development of a competitive and sustainable automotive industry by encouraging local component manufacturing, promoting technological advancements, and enhancing supply chain resilience. These include incentives for investment in local research and development (R&D), along with the adoption of Industry 4.0 technologies to improve efficiency and visibility across the supply chain. But policies take time to mature. Real progress hinges on execution. Three Paths to Resilience 1. Regional sourcing and collaboration. By tapping deeper into Asean's collective strength, under the Asean Free Trade Area (AFTA), Malaysian players can reduce exposure to distant disruptions. Shared production hubs, aligned quality standards, and streamlined cross-border trade offer practical ways to secure supply while boosting regional competitiveness. 2. Technology for transparency. More manufacturers are adopting predictive analytics and digital twins to model supply risks before they happen. What used to be a black box – the logistics chain – is becoming a dashboard, allowing for more informed, faster decisions. 3. Redefining local content. Localisation must now mean more than assembly. It means R&D, process innovation, and skilled labour development – all tailored to Malaysia's unique position. That's how we move from being an assembly hub to a knowledge and capability hub. Tariff war begins The imposition of tariffs by the United States under the current administration took many by surprise. While Malaysia's automotive exports to the United States are limited, the tariffs have a ripple effect across the global economy. A disruption at a single tier-one supplier in one country could have cascading effects down the supply chain, halting production lines thousands of miles away. Increased raw material and component costs, along with future uncertainties in trade relationships, will force manufacturers to revisit sourcing strategies and address vulnerabilities in the supply chain. Manufacturers want stability and predictability. More than low-cost sourcing, they seek partnerships with countries that offer sound policies, stable economics, and favourable tariff structures. Tariffs also affect adjacent industries – steel, composites, electronics, telecommunications – all of which feed into automotive manufacturing. Malaysia's manufacturers are still reliant on imported components, and that impacts both local assembly and export competitiveness. Building an adaptive industry So, what are we doing as an industry and economy to mitigate these shifts? Firstly, supply chain diversification. Manufacturers are actively seeking alternative suppliers in different regions to reduce single-source dependencies. This includes greater exploration of intra-Asean partnerships and new emerging markets. Secondly, digitalisation. The Covid-19 pandemic accelerated the adoption of real-time tracking, predictive analytics, and supply chain modelling. These tools help automotive companies gain visibility, anticipate disruptions, and respond more effectively. And thirdly, renewed focus on localisation. Government incentives are encouraging both foreign and domestic investments in component manufacturing. This reduces import reliance, creates local jobs, and strengthens the resilience of our export capacity. Talent, innovation and collaboration Localisation will further require, to future proof the transition, a robust talent pipeline. From R&D and manufacturing to after-sales service, human capital is key. Malaysia has long invested in technical and vocational education, and partnerships with automakers ensure that this ecosystem evolves in tandem with industry needs. We are home to a number of tertiary and vocational training institutes, many of which have allied with global manufacturers to generate a steady stream of talent. Localisation must be innovation-driven. It's not about replicating global models, but adapting them to our local strengths. Setting up at pace, scaling responsibly, and embedding quality – these are the new imperatives, and serve as encouragement to invest in increasing local content in locally assembled products. As a member of Asean, Malaysia sits within a regional automotive ecosystem, where our neighbouring countries compete with us to attract manufacturing and investment opportunities. But as the globalisation banner makes way for regionalisation, this opens up a slew of opportunities for collaboration. In complex automotive assemblies, such as a car dashboard, components may come from several countries, so having ease of trading and logistics between partner countries can save time and cost, shared growth leads to shared resilience, benefiting local industries. Conclusion Malaysia's automotive sector is already one of the most developed in Asean. It contributes 4% to GDP and supports over 700,000 jobs. We have one of the highest vehicle populations in the region – and we are not standing still. The disruptions we face are global. But our response must be local, regional, and forward- looking. The future of mobility depends not only on what we build – but how we build it, and who we build it with. In this, Malaysia is not just participating in the conversation – we're helping shape the next chapter. The views expressed here are the writer's own.
New Straits Times
19-05-2025
- Automotive
- New Straits Times
MIDA, Chery unveil initiative to drive domestic automotive sector
MALAYSIAN Investment Development Authority (MIDA) and Chery Corporate Malaysia Sdn Bhd have launched an initiative to bolster the country's automotive sector. Called Chery Premier Supply Chain Synergy Programme, it brought together 12 leading Chery technology suppliers from China and 23 Malaysian suppliers. This creates a powerful platform for collaboration and growth, MIDA said in a statement. The strategic initiative, held last Friday, was hosted at MIDA's headquarters and supported by Investment, Trade and Industry Ministry and the Malaysia Automotive Robotics & IoT Institute. MIDA chief exceutive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid highlighted the significance of the programme in realising Malaysia's National Automotive Policy 2020. "This inaugural programme directly supports our commitment to fostering collaboration between Malaysian vendors and Chery China. "We aim to unlock mutually beneficial opportunities that drive growth and innovation, aligning perfectly with NAP 2020's objectives of promoting local vendor development, supporting next-generation vehicles and incorporating Industry 4.0 practices." He added that by fostering these vital links, it envisions a future rich with technology transfer, streamlined supply chains, and enhanced industrial capabilities, ultimately benefiting both Malaysia and Chery." Chery Malaysia executive vice president Leo Chen said the collaboration reflects Chery's commitment to championing localisation and fortifying our supply chain ecosystem in Malaysia. "As part of Chery's broader strategy to deepen our roots in this market and lead the advancement of a modern, inclusive automotive industry, we are proud to work hand in hand with local suppliers to foster sustainable growth and resilience. A highlight of the programme was the Chinese carmaker's presentation of its upcoming Chery Smart Auto Industrial Park in the Beringin High-Tech Auto Valley. The ambitious project is set to become Chery's manufacturing cornerstone in the region, representing a significant step in Malaysia's automotive evolution. The event culminated in the signing of four memoranda of understanding (MoUs): • Wuhu Atech Automotive Electronics Co Ltd and Multi-Code Electronics Industries (M) Bhd; • Cheling Smart Mobility Technology (Wuhu) Co Ltd and Multi-Code Electronics Industries (M) Bhd; • Zhejiang Wanliyang Co Ltd and Chery Malaysia; and • Wuhu Qida Power Battery System Co Ltd and Chery Malaysia. These partnerships focus on automotive components, technology ransfer, and joint investments, strengthening Malaysia's position in the global automotive supply chain.
New Straits Times
14-05-2025
- Automotive
- New Straits Times
Tech‑driven safety: The twin pillars of Malaysia's automotive evolution
THE automotive industry in Malaysia is experiencing a shift now that connectivity and safety - once considered premium add-ons - have now become non-negotiable. Car buyers today are not merely looking for a means of transport - they're seeking smarter, safer, and more sustainable mobility solutions. This shift is reshaping the landscape for automakers and policymakers alike. As global trends continue to influence regional demand, Malaysia is carving its own path forward. The push for electrification and advanced driver assistance systems (ADAS) reflects both government ambition and consumer readiness. With the National Automotive Policy (NAP 2020) promoting next-generation vehicles and the Low Carbon Mobility Blueprint outlining long-term sustainability goals, the future of mobility in Malaysia hinges on a dual pursuit: technological innovation and uncompromising safety. Smart Tech As The New Standard Malaysians are increasingly prioritising connected features and intelligent systems in their vehicles. From infotainment integrations to autonomous emergency braking and adaptive cruise control, automotive technologies once considered premium are becoming expected - even in mid-range models. According to MDEC, Malaysia's digital economy is projected to contribute over 25 per cent to GDP by 2025, a growth trajectory that naturally extends to digital integration in vehicles. This growing appetite for intelligent tech is driving carmakers to reimagine their value proposition. Modern consumers are more tech-savvy, demanding seamless connectivity, user-friendly interfaces, and safety enhancements that anticipate and prevent collisions. As such, vehicle software is now as important as hardware - if not more. Leapmotor, a successful new energy vehicle startup originating from China, embodies the spirit of innovation, much like the potential of inventing something from a blank canvas. The brand's commitment to in-house technology development sets them apart. Coupled with award-winning designs, Leapmotor vehicles provide an eco-friendly and technologically sophisticated mobility, featuring advanced ADAS and smart driving assistance - all engineered to satisfy the evolving expectations of today's drivers in the region that puts technology as a core element of the driving experience. Safety Isn't Optional - It's The Selling Point Once a differentiator, safety is now a non-negotiable for car buyers. Organisations like Asean NCAP have helped elevate safety standards in the region, and Malaysian consumers are becoming more discerning. Features like lane departure warning, blind spot detection, and autonomous emergency braking are no longer optional upgrades - they are deal-breakers. Real-world data reinforces this shift in priorities. Studies show that vehicles equipped with AEB can reduce rear-end collisions by up to 52 per cent while pedestrian-detection AEB has been shown to cut related fatalities by 25–27 per cent. These figures underline why consumers are placing greater trust in vehicles that incorporate active safety systems - and why automakers must continue to make them more widely available. This emphasis on safety is not merely about ticking regulatory boxes - it is about earning consumer confidence in an increasingly complex driving environment. Whether navigating city congestion or long-distance travel, drivers now expect their vehicles to serve as a second pair of eyes, intervening where necessary to prevent accidents before they happen. Adapting To Evolving Preferences As Malaysia's automotive maturity deepens, consumer preferences are becoming more sophisticated. Affordability remains crucial, but there's a stronger focus on long-term value - fuel efficiency, digital connectivity, and after-sales service. Today's buyer is informed, comparison-driven, and future-oriented. Global brands that succeed in Malaysia understand that a one-size-fits-all approach no longer works. Stellantis Malaysia has been steadily adapting its portfolio to this reality. By offering models that integrate technology, safety, and localised design cues, the group continues to build relevance in markets across Asean. The all-new C10 by Leapmotor signals a thoughtful response to demand for accessible EVs that do not compromise on quality or features. Equipped with ADAS Level 2 capabilities offering 16 types of advanced safety functions, the Leapmotor C10 has achieved five-star safety ratings across Europe's NCAP, Australia's ANCAP and China's C-NCAP. At the same time, Peugeot continues to evolve its identity in Malaysia, delivering cars such as the landmark Peugeot 408 fastback that blend signature style with next-generation safety, garnering design awards such as the prestigious 2023 Red Dot Design Award, and smart tech to meet the expectations of today's discerning drivers. The Road Ahead As Malaysia moves toward its goals for electrification and intelligent mobility, the role of automakers goes beyond product delivery - it is about shaping ecosystems. This includes investing in local partnerships, enhancing after-sales service networks, and helping set the tone for safer, smarter transport systems. For Stellantis Malaysia, this is not just an opportunity - it is a responsibility. Through its multi-brand strategy and partnerships like Leapmotor, the company aims to make advanced automotive technologies not just available, but accessible. It's a vision of mobility where safety and intelligence are not privileges - they are the baseline. As Malaysia navigates this new era, global players who listen, localise and lead through innovation will help drive the country toward a more connected, secure and sustainable automotive future. *The writer is Stellantis managing director of Asean.
Barnama
13-05-2025
- Automotive
- Barnama
MARii Launches Voluntary NxGV Labelling Scheme and Celebrates Youth Innovation Driving Asean Green Mobility Leadership
SERDANG, May 13 (Bernama) -- In conjunction with Malaysia Autoshow 2025, Malaysia Automotive, Robotics and IoT Institute (MARii) officially launched the Voluntary Next Generation Vehicle (NxGV) Labelling Scheme, a milestone initiative under the National Automotive Policy 2020 (NAP2020) aimed at accelerating Malaysia's transition to green and intelligent mobility, while reinforcing its leadership within the ASEAN region. In the same spirit of innovation, MARii also held the NxGV Challenge 2025 Prize Giving Ceremony, celebrating youth-led breakthroughs in electric vehicle (EV) design and development, co-organised by MARii and SAE Malaysia, supported by PERODUA. The dual milestone reflects Malaysia's proactive stance under its ASEAN Chairmanship in driving the region's transition towards low carbon, connected mobility solutions, while nurturing the next generation of automotive talent.
