The 10-year policy was formulated to continue the development of the local automotive industry and its overall ecosystem in order to ensure the realisation of the National Automotive Vision (NAV).
NAV aims to make Malaysia a hub for exports of vehicles, components and spare parts, automotive research and development (R&D), development of automotive and mobility-related technologies as well as vehicle and component testing.
The fourth version -- the NAP 2020 -- envisions enhancing Malaysia’s automotive industry in the era of digital industrial transformation from 2020 to 2030, in line with global trends, and is crucial in ensuring the local automotive industry continues to grow and remain competitive.
The introduction of new high technology in NAP 2020 will enable Malaysia to become a leader in the automotive industry within the ASEAN region, hence strengthening international cooperation in the development of a global automotive industry.
"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 realising the National Automotive Vision," according to the Ministry of International Trade and Industry (MITI) booklet on the NAP 2020 released here today.
The NAP 2020 is an enhancement of NAP 2014. The core of the NAP 2020 is the element of technology, such as Next-Generation Vehicles (NxGV), Mobility-as-a-Service (MaaS), and Industrial Revolution 4.0 (IR4.0), which are in line with disruptive trends that have emerged in global markets.
Developing the country's technology ecosystem to enable it to become a regional hub for the production NxGVs is among the key objectives of NAP 2020.
NAP 2020 would also continue its focus on enhancing the development of energy-efficient vehicles (EEVs) which include internal combustion engine (ICE), hybrid and electric powertrains.
NAP 2020 also aims to expand the participation of the domestic automotive industry in the sector of MaaS, which not only focuses on the development of technology, but also the overall transportation ecosystem.
This would ensure the domestic automotive industry is better equipped with new paradigms in the automotive sector closely related to the development of IR4.0.
The enhanced NAP aims to ensure the overall ecosystem including consumers, the domestic industry and the Government receive maximum benefit from the spinoff from the overall implementation of NxGV.
NAP 2020 also outlines an objective to reduce carbon emissions from vehicles by improving fuel economy in Malaysia by 2025 in line with the ASEAN Fuel Economy Roadmap that sets an average fuel economy of 5.3 litres of gasoline equivalent (LGe) per 100 km.
"Specific measures to promote technology development in NxGV, MaaS and IR4.0 in the domestic automotive sector would enable Malaysia to market its automotive products at the global level.
"The new technological advancements 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," said MITI, adding 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 implementation of the NAP 2020 is expected to contribute RM104.2 billion to the country’s gross domestic product (GDP) and create 323,000 jobs by 2030, according to the ministry.
NAP 2020 targets the total value of exports to reach RM50.6 billion by 2030, comprising Complete Built-Up (CBU) exports worth RM12.3 billion, new automotive parts and components exports (RM28.3 billion) and remanufactured automotive parts and components (RM10 billion).
Market expansion measures include export programmes and trade investment missions related to new and specialised business opportunities arising from the introduction of the elements of technology and services in NAP 2020.
MITI will also continue to maximise the use of free trade agreements and expand soft loan schemes to promote new export areas (such as NxGV, MaaS and IR4.0 related services) as well as encourage the utilisation of eCommerce platforms to market products in the domestic and international markets.
NAP 2020 incorporates a plan to set up an Autonomous/Automatic Vehicle Test Bed and establish a Technology Academy (automotive and overall mobility) in the country by 2030.
The NAP, first introduced in 2006 to help regulate the local automotive industry, was reviewed in 2009 and 2014 to better reflect the changes in the automotive industry.
NAP 2020 was successfully launched today by Prime Minister Tun Dr Mahathir Mohamad at MITI. Efforts to develop the domestic automotive industry have been led by MITI, which is the custodian of the NAP.
Monitoring and reporting of NAP 2020 implementation will continue via the Malaysian Automotive Council, with MITI Minister Datuk Darell Leiking as the chairman with the power to appoint the members.