Malaysia Targets Stronger EV Ecosystem Via OEM-Local Vendor Ties -- Sim
KUALA LUMPUR, May 11 (Bernama) -- Malaysia wants original equipment manufacturers (OEMs) to collaborate with local vendors to level up the entire value chain and ecosystem via the new electric vehicle (EV) policy, said Deputy Investment, Trade and Industry Minister Sim Tze Tzin.
He said that many think the government only wants to protect local companies like car manufacturers, but it actually has a bigger objective, focusing on developing the ecosystem.
“We want foreign car manufacturers to build our ecosystem. We have 150 to 180 Tier 1 vendors and 640 Tier 2 and 3 components and parts manufacturers.
“We want foreign manufacturers to collaborate with them to enhance their capabilities, move up the value chain and get them ready to become components and parts exporters,” he told reporters at PwC’s 2nd ASEAN Automotive and Mobility Conference here today.
He said the ecosystem is not limited to serving only Perusahaan Otomobil Kedua Sdn Bhd (Perodua) and Proton Holdings Bhd but also caters to a wide range of automotive brands, including European, Japanese, and Chinese companies.
“Also, we have the most opportunities in semiconductors which (many) people don't see. The old model for internal combustion engine (ICE) has very few semiconductor chips, but the EVs -- battery EVs and plug-in hybrid EVs -- and future autonomous cars have thousands of chips.
“This is where Malaysia has the greatest opportunity in ASEAN, where we have upstream to downstream (activities), we have integrated circuit (IC) design, we have fabs, we have assembly and test. We hope we have the entire value chain for cars, IC chips,” he said.
On May 6, the Ministry of Investment, Trade and Industry (MITI) said all fully imported completely built-up EVs are subject to two main conditions starting July 1, 2026, including a new minimum motor power output of 180 kilowatts (kW).
MITI said a minimum cost, insurance, and freight (CIF) value requirement of RM200,000 will also be imposed on imported CBU EVs.
Meanwhile, Sim said Malaysia targets Level 3 autonomous driving capability by 2030 with the Malaysia Automotive, Robotics and IoT Institute (MARii) set to begin groundwork on the initiative.
“I think we are still at the very beginning. Malaysia has not started a conversation on autonomous driving. I'm going to push for industries to start looking at this because autonomous driving involves a lot of changes,” he said.
He noted that in the United States, autonomous driving is expanding quickly from (being introduced in) four cities last year to 40 cities this year, with another 60 cities expected next year.
“This is growing at exponential speed, and like it or not, autonomous driving will be coming to Malaysia very soon, and we must all be ready.
“Our industry must be ready to be part of this very important sector. (Industry players) must be ready to upgrade their skills so that they become the suppliers of sensors, suppliers of chips, suppliers of software, and so on,” he said.
Earlier during his opening remarks at the 2nd ASEAN Automotive and Mobility Conference, he said connected systems, autonomous capabilities, shared mobility models, and electrification (CASE) are transforming the very foundation of mobility.
He said vehicles today are no longer just machines that move people from one place to another but are becoming intelligent, software-defined platforms that communicate in real time, rely on advanced sensors and artificial intelligence, and are increasingly integrated into a wider digital ecosystem.
Sim urged industry players to think long term and prepare early for autonomous driving.
“I believe the true future of mobility is autonomous driving. I want to challenge our industry leaders today: Do not just plan for next year. Plan for the next decade.
“If we only focus on 'today,' we will always be chasing others. But if we start building the foundation for autonomous technology now, Malaysia can lead the region,” he added.
-- BERNAMA
