Mida woos investors to Malaysia’s automotive industry

KUALA LUMPUR: Technologytrends such as diverse mobility, autonomous driving, the move towards electric vehicles, and connectivity will shape the automotive industry in 10 to 15 years’ time, said the Malaysian Investment Development Authority (Mida).

Digitisation and new, potentially disruptive business models would continue to revolutionise the world, the agency said in making the call for investors to seize the growing opportunities in the industry.

“The future of the industry is full of both opportunities and challenges. Potential investors can expect Malaysia to be right in the heat of it, capitalising on these opportunities,” Mida said in its Malaysia Investment Performance 2018 Report released recently.

It noted that an increasing reliance on software-based systems, such as those found in autonomous vehicles, would require car systems to be upgradable.

Software in cars is used in the delivery of a wide range of features and services, including mobility services, advanced safety, global positioning system and other location- based services, in- car entertainment, and remote diagnostics/analytics.

Hence, software quality and security had become one of the most important differentiating factors for industry players, Mida said.

“The local automotive sub-sector currently needs more suppliers to manufacture automotive parts and components in the scale required,” the agency said, adding that the industry faced numerous challenges, such as missing linkages and components within the existing automotive ecosystem.

For investors planning to produce critical automotive components/ systems, Mida provides incentives in the form of pioneer status and investment tax allowance for a period ranging from five to 10 years. — Bernama