Transportation Technology – Automotive

Malaysia’s automotive industry remains a vital pillar of the nation’s manufacturing sector, contributing significantly to economic growth, employment, and technology development. As of 2024, the sector recorded robust performance with total industry volume (TIV) reaching record highs, surpassing 800,000 units sold — a testament to strong consumer confidence and recovery momentum post-pandemic. Malaysia continues to serve as a regional hub for energy-efficient vehicles (EEVs), with extensive local assembly operations supported by global and regional automotive brands. The country’s strategic position within ASEAN, combined with a comprehensive automotive ecosystem of manufacturers, parts suppliers, and service providers, has solidified its standing as a competitive base for automotive production and exports.

The Malaysian Investment Development Authority (MIDA) continues to play a pivotal role in driving the transformation of Malaysia’s automotive sector towards high-value, sustainable, and technology-driven activities. By facilitating strategic investments aligned with the National Automotive Policy 2020, MIDA has successfully attracted major global and regional players in electrification (EV, PHEV) and its ecosystem including smart mobility technologies. Between 2020 and 2024, the automotive sector secured over RM30 billion in approved investments, reflecting investor confidence in Malaysia’s ecosystem and long-term potential. MIDA offers comprehensive support through customized investment incentives, facilitation of joint ventures, and close collaboration with stakeholders to streamline project implementation. In addition, MIDA actively promotes the development of automotive clusters and supplier ecosystems to ensure Malaysia remains competitive in producing next-generation vehicles and critical components. Through these strategic initiatives, MIDA is reinforcing Malaysia’s vision of becoming a regional leader in sustainable and future mobility solutions by 2030.

Driven by the National Automotive Policy 2020 (NAP 2020) and subsequent policy enhancements, Malaysia is prioritizing Next-Generation Vehicles (NxGVs), mobility-as-a-service (MaaS), and Industry 4.0 applications within automotive manufacturing. In line with global trends, the government continues to support the growth of electrification through tax incentives, investment promotion, and infrastructure development. Notably, 2024 saw a surge in EV-related investments, with new entrants and existing players announcing major manufacturing and assembly projects, further advancing Malaysia’s ambition to become a regional EV hub by 2030. Key automotive corridors such as Selangor, Kedah, and Melaka are seeing expanded industrial activities focusing on EV component production, battery technology, and smart mobility solutions.

Human capital development remains at the core of Malaysia’s automotive strategy, ensuring the workforce evolves alongside the industry’s transformation. Institutions such as the Malaysia Automotive, Robotics and IoT Institute (MARii), in collaboration with technical universities and training centers, are rolling out specialised programs targeting EV technology, autonomous vehicle systems, and digital manufacturing. These initiatives are crucial in developing a pool of high-skilled talent capable of supporting advanced automotive technologies and sustaining Malaysia’s competitiveness in the global value chain.