SMEs, vendors urged to stay updated with latest advancements to remain competitive in EV market

03 May 2023

Small-and-medium enterprises (SMEs) and vendors are urged to stay updated with the latest advancements and best practices in electric vehicle (EV) component design and manufacturing to remain competitive.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said with electrification, vehicle components will be simpler in assembly, but more sophisticated in design and development.

“In order to ensure competitiveness in this evolving landscape, it is crucial for SMEs and vendors to have the necessary support.

“This support can come in various forms, including access to technological expertise, research and development resources,” he said at the soft launch of the Malaysia Autoshow 2023 here today.

Tengku Zafrul said the National Automotive Policy 2020 (NAP) places a strong emphasis on developing new mobility solutions that are more efficient, sustainable and customer-centric.

This includes the promotion of energy-efficient vehicles (EEV) plus connected and autonomous vehicles or Next Generation Vehicles (NxGV), EVs and other forms of alternative propulsion, he said.

He said the government foresees rapid growth of NxGV in Malaysia, as the country is one of the leading electrical and electronics (E&E) manufacturing hubs in Southeast Asia.

“We could leverage our position by servicing the whole value chain, comprising semiconductors, sensors, automotive electronics, transceivers, batteries and auto assembly,” Tengku Zafrul said.

The minister said the EV sector in the ASEAN market is forecast to grow at almost 33 per cent per annum to US$2.7 billion (RM12.01 billion) by 2027, from nearly US$500 million (RM2.2 billion) in 2021.

This means that electrification becomes an even more important agenda and from an automotive perspective, Malaysia must drive towards even higher goals for EV penetration within the country.

Source: Bernama