MALAYSIA HAS POTENTIAL TO BECOME REGIONAL HUB FOR EV PRODUCTION - FADILLAH

KUALA LUMPUR, Dec 4 (Bernama) -- Malaysia has the potential to become a regional hub for electric vehicle (EV) production and innovation, said Deputy Prime Minister Datuk Seri Fadillah Yusof. 

He said the growth of the mobility industry presents immense opportunities for local manufacturers and small and medium enterprises (SMEs) to integrate into the global supply chain. 

Fadillah, who is also the Minister of Energy Transition and Water Transformation, added that Malaysia’s National Investment Aspirations aim to position the country as a global supply chain hub by attracting high-quality investments and enhancing the capabilities of local industries. 

“This strategic initiative focuses on integrating local manufacturers and SMEs into the global supply chains, thereby boosting economic growth and competitiveness,” he said in his speech at the Kuala Lumpur International Mobility Show (KLIMS) 2024 opening ceremony today. 

Also present was Transport Minister Anthony Loke. 

KLIMS 2024, themed “Beyond Mobility”, is organised by the Malaysian Automotive Association (MAA), and managed by Qube Integrated Malaysia Sdn Bhd.

Fadillah emphasised that KLIMS 2024 is an important event to accelerate the vision, bringing together stakeholders from around the world, and collaborating as well as creating solutions that benefit everyone.

In addition, he said KLIMS 2024 serves as an excellent platform to witness firsthand the advancements in automotive technology, bolstered by Malaysia’s regional collaboration through the ASEAN Power Grid initiative, which aligns with Malaysia’s leadership as ASEAN chair in 2025 to secure a sustainable energy future.

Hence, Fadillah called on stakeholders, particularly the mobility industry leaders, policymakers, innovators, and consumers, to work hand-in-hand in driving the mission. 

“Malaysia is committed to building a sustainable future for the generations to come. Transportation, being one of the largest contributors to greenhouse gas emissions, is a critical area in our national energy transition plan. 

“Consumer adoption of EVs and hybrid vehicles will drive the nation closer to its sustainability goals, with transformative initiatives like KLIMS playing a pivotal role in sparking widespread interest, collaboration, and action,” he said. 

Meanwhile, KLIMS 2024 chairman, Mohd Samsor Mohd Zain, said the event brings together global and local players to showcase their products and ideas. 

He said the event showcases a diverse range of cutting-edge automotive technology and solutions, including two- and three-wheelers, last-mile mobility solutions and future-focused innovations that are paving the way for smarter and more sustainable transportation.

“The exhibition also provides a platform for local manufacturers and suppliers to connect with global industry leaders, facilitating information sharing and business collaborations.

“Such interactions are essential for Malaysia’s ambition to become a regional hub for automotive manufacturing and innovation,” said Mohd Samsor, who is also MAA president, in his speech. 

He added that Malaysia’s leadership in Southeast Asia’s automotive industry is steadily gaining momentum, thanks to the significant strides in technology, infrastructure development and government policy support.

Mohd Samsor also noted that the automotive industry is one of the key engines of Malaysia’s economic growth as its contribution is immense with significant linkages in manufacturing to the service sector. 

He said the industry contributes 4.0 per cent of the national gross domestic product (GDP) annually, and currently it is estimated that over 700,000 are employed in the automotive industry.

“Over the years, the automotive industry has expanded tremendously in tandem with the country’s economic growth and the increasing standard of living.

“The total industry volume (TIV) for the automotive industry has grown leaps and bounds over the last three decades, from 200,000 units in 1994 to an all-time high of 799,731 units in 2023,” Mohd Samsor said. 

He noted that Malaysia is expecting this year to achieve another record of above 800,000 units.

“Much of the successes and achievements of our local automotive industry would not have been possible without the strong support, assistance and encouragement from the government,” Mohd Samsor concluded.

-- BERNAMA