Malaysia is on target to change into a significant electric vehicle (EV) hub in Southeast Asia due to the federal government’s strong support in creating an enabling environment for electric vehicles and the strong commitment of two world-renowned automakers, Geely and Tesla.
As reported by Bernama, Mohd Shamsor Mohd Zain, president of the Malaysian Automobile Association (MAA), stressed that the presence of the 2 automobile manufacturers demonstrated the importance of Malaysia’s role within the regional automotive industry. He added that the worldwide experience and advanced technology of those two corporations can bring recent ideas and business methods that may then be applied locally, including research and development of advanced technology products that will not yet be available within the country.
Mohd Shamsor also noted that with the concentrate on electrification, the automotive industry will see changes in vehicle components, especially within the production of batteries and other specialized components for electric vehicles. Additionally, he believes the industry will adopt recent skills and infrastructure to adapt to different levels of electrification, starting from mild hybrids to completely electric vehicles. It may also create opportunities to reskill or upskill automotive employees, while encouraging innovation, research and the production of high-value components.
As Malaysia is a significant electrical and electronic equipment manufacturing hub within the region, automakers and automotive investors can leverage the power to extend production of next-generation vehicles (NxGVs). Mohd Shamsor believes that with the proper infrastructure and policy support from the federal government, Malaysia is strategically positioned and has favorable economic conditions to change into a regional hub to support the worldwide development of electrical vehicles.
With over 40 automobile brands within the domestic market, the presence of latest corporations within the automotive industry will definitely have a positive impact available on the market and attract the interest of more customers. Moreover, competition is intensifying and the variability of automobile decisions is increasing, forcing all automotive corporations to stay progressive and supply higher services to consumers.
The arrival of more electric cars, including locally assembled (CKD) models, will create recent economic opportunities for suppliers. Currently, electric cars are still considered a distinct segment market within the domestic automotive industry, so it is necessary to make sure strong demand for the sector to thrive in Malaysia.
Significant changes in labor, tax and subsidy distribution structures are required to realize this turning point within the industry’s development and for Malaysia to leverage its competitive advantage by global standards. Several countries leading the electrical vehicle industry are implementing carbon taxes to encourage manufacturers and consumers to modify to greener vehicles.
Aiming to change into Malaysia’s next-generation automotive hub and comprehensively cover the automotive and mobility solutions value chain, Geely is collaborating with its Malaysian partner DRB-Hicom Bhd to determine an Automotive High-Tech Valley (AHTV) in Tanjung Malim, Perak. The project is anticipated to draw various investments value a complete of RM32 billion.
Most recently, on July 18, Prime Minister Anwar Ibrahim announced that Geely plans to take a position US$10 billion (RM45 billion) to remodel Tanjung Malim into the biggest automotive city within the region.
The development of AHTV is anticipated to create employment opportunities, including a wide range of highly expert positions. To support this initiative, the federal government is offering a pretty package of incentives, including tax breaks for land development, production of parts and components, and the development of research centers and training facilities.
According to the Annual Report on the Global Transition to Electric Vehicles: 2022” published by the International Council on Clean Transport, the Association of Southeast Asian Nations (ASEAN) single market recorded sales of 39,000 electric vehicles last 12 months, a rise of 165% in in comparison with Research by Counterpoint Global Passenger Electric Vehicle Sales Tracker shows that Thailand has the biggest share of electrical passenger vehicle sales in Southeast Asia with 58 percent of electrical passenger vehicle sales, followed by Indonesia (19.5 percent), Vietnam (15.8 percent) and Malaysia (2.6 percent). percent).
To achieve its goal of electrical vehicle adoption, Malaysia has set a goal for 15% of total industrial volume (TIV) to return from electric vehicles – each electric and hybrid – by 2030, rising to 38% TIV by 2040 r.
