The National Automotive Policy 2020 (‘NAP2020’) was launched by the Prime Minister of Malaysia on 21 February 2020.
The objectives of NAP2020 are as follows –
- develop the Next Generation Vehicle (‘NxGV’) technology ecosystem to make Malaysia a regional hub for the production of NxGV;
- expand the participation of the domestic automotive industry in the Mobility as a Service (‘MaaS’) sector which focuses on the development of technology as well as the overall transportation ecosystem;
- ensure that the domestic automotive industry is better equipped with the new paradigm in the automotive sector closely related to the development of Industrial Revolution 4.0 (‘IR4.0’);
- ensure that the overall ecosystem including consumers, domestic industry, and the Government receive maximum benefit from the spin-off from the implementation of NxGV; and
- reduce carbon emission from vehicles by improving fuel economy level in Malaysia by 2025 in line with the ASEAN Fuel Economy Roadmap of 5.3 Lge/100 km.
The five objectives under NAP2020 are in addition to the seven objectives under the National Automotive Policy 2014 (‘NAP2014’) which the Government will continue to pursue, namely –
- develop a competitive and capable domestic automotive industry;
- develop Malaysia as the regional hub for Energy Efficient Vehicles (‘EEV’);
- increase value-added activities in a sustainable way while continuously developing domestic capabilities;
- increase exports of vehicles, automotive components, spare parts and related products in the manufacturing and aftermarket sectors;
- increase the participation of competitive Bumiputera companies in the domestic automotive industry, including in the aftermarket sectors;
- enhance the ecosystem of the manufacturing and aftermarket sector; and
- safeguard consumer interests by offering safer and better quality products at competitive prices.
NAP2020 also supports the development of existing or new Malaysian Vehicle Project as well as the participation of any vehicle producing company in realising the National Automotive Vision to make Malaysia a hub for –
- export of vehicles;
- export of components and spare parts;
- automotive research and development;
- development of automotive and mobility related technologies; and
- vehicle and component testing.
NAP2020 enhances NAP2014 through three directional thrusts and three strategies that introduce three new technology elements, namely NxGV, MaaS and IR4.0.
The three directional thrusts are –
- technology and engineering – to expand the Energy Efficient Vehicle (‘EEV’) technology and engineering of the automotive sector to NxGV, MaaS and IR4.0 in unison;
- investment – to introduce initiatives that can attract strategic investments and high technology adaptations in line with NAP2020’s technology thrust to ensure sustainability of the automotive sector’s competitiveness in tandem with the development of global technology; and
- market expansion – to focus the market expansion of the local automotive industry including companies in the aftersales and service sector.
The three strategies are –
- value chain development – to enhance supply chain competitiveness and become more competitive in the pursuit of high quality products that meet the standards of vehicle manufacturers and consumer needs;
- human capital development – to develop human capital in tandem with the development of current and future automotive technology; and
- safety, environment and consumerism – to promote the adoption of new, more environmentally friendly elements of technologies that will address the issue of pollution; to emphasise on the safety of vehicles and consumers; and to include consumerism elements to protect consumer rights.
NAP2020 establishes four Roadmaps and three Blueprints for the period 2020 to 2030 (which are to be rolled-out) to implement the measures and strategies under NAP2020, namely–
- National Roadmap for Automotive and Mobility Value Chain (NRAMVC) which seeks to develop and enhance the competitiveness of component suppliers of automotive and mobility value chain to supply regional or global markets;
- National Roadmap for Automotive & Mobility Technology (NRAMT) which charts the way forward on related technology development in EEV, NxGV, smart mobility, IoT infrastructure and IR4.0 that support the development and manufacturing of automotive products and mobility ecosystems;
- National Roadmap for Automotive & Mobility Talent (NRAMTa) which outlines improved plans for the development of a competitive workforce that suits the demand at all levels of manufacturing, marketing, automotive services including the integration of the mobility ecosystem;
- National Roadmap for Automotive Aftermarket (NRAA) which outlines the criteria through improvements of remanufacturing, standards and best practices that can be adopted by domestic automotive stakeholders to make Malaysia an automotive remanufacturing hub in ASEAN; it also provides guidelines for optimising the quality of recycling and re-use of components and for treatment facility and remanufacturing;
- National Blueprint for Automotive Mobility as a Service (NBAMaaS) which outlines the core planning of transport services and mobility solutions to accommodate development needs of Malaysia’s automotive industry;
- National Blueprint for Automotive Robotics (NBAR) which outlines strategies in robotic technology towards providing solutions to the issues and challenges especially in the manufacturing sector including the introduction of IR4.0 and use of robotics automation to enhance capabilities in product design, equipment handling, operations, process, supply chain management and green energy management; and
- National Blueprint for Automotive Internet of Things (NBAIoT) which outlines the direction of connectivity revolution in automotive industry and marketing strategies of connected vehicles including Vehicle-to-Everything (V2X), autonomous vehicles, safety aspects and regulations; it also outlines ways to address manufacturing challenges, vehicle life cycle and process development of a conducive IoT ecosystem.
The seven documents are enhancements of the existing six NAP2014 Roadmaps.
To encourage foreign investment in the Malaysian automotive sector, the Government proposes to offer competitive investment opportunities through a comprehensive mechanism for customised incentives.
In recent years, Malaysia has lost ground to Thailand and Indonesia as the preferred automotive hub in ASEAN. It remains to be seen whether NAP2020 will help Malaysia regain lost ground in this sector.
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