NAP 2018 will focus on strategic partnerships with global players

KUALA LUMPUR: A review of the National Automotive Policy (NAP) will be announced in mid-2018, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said, in a bid to update NAP 2014 and focus on areas which need further development.

He said NAP 2018 is still a work-inprogress and the review started in mid2017, with consultations to continue for another four to five months. NAP 2018 will focus on mobility, next-generation vehicles, big data, lifestyle and connectivity, compared with NAP 2014 that focused on energy efficiency, safety and carbon emission reduction.

“We (Malaysia) are a small player, therefore we have to find a niche for ourselves. We have to be part of the global system and it’s tough for us to survive in this environment, therefore we encourage strategic partnerships with major technology partners. That’s a model for Malaysia,” he told a media briefing on the updates of the automotive industry in 2017 and outlook for 2018 yesterday.

Mustapa said under NAP 2014, Malaysia did well in terms of energy efficient vehicle (EEV) penetration, achieving 52% in 2017, surpassing the 50% target set by the government. Currently 19 original equipment manufacturers are offering EEVs to the Malaysian market. EEV production volume was 308,807 units in 2017, also exceeding its target. There was no mention of the number of new EEV manufacturing licences approved.

Mustapa said he had a wishlist when he introduced NAP 2014. One was to see more export of car components, another was to see more CBUs (completely built-ups) being exported. The total industry volume (TIV) for Malaysia is comparatively low compared to other Asean countries, hence export is the way forward.

“On CBUs, I’m not happy. Disappointed. The number has been hovering around 30,000 (units) in the last two to three years. I don’t see exports of CBU from Malaysia increasing substantially in the next few years but it is my wish to see a big increase, probably after five years.

“On components, we’ve made some good progress. Going forward, NAP 2018 will focus more and more on parts and components,” said Mustapa.

For 2018, the government is projecting a 2% growth in TIV to 586,000-591,000 units, and a 4% growth in total production volume to 530,000535,000 units this year. EEV penetration is targeted to hit 60% this year. In 20182022, committed investments are expected to reach RM3.99 billion, while committed localisation is estimated at RM15 billion.

Exports of vehicles are targeted to reach 34,000 units this year, compared with 18,887 units as at November 2017.