MALAYSIA is on track to become an electric vehicle (EV) powerhouse in Southeast Asia with the government aggressively promoting a conducive EV ecosystem, supported by commitment from two world-renowned automotive companies, Zhejiang Geely Holding Group Co Ltd and Tesla Inc.
Malaysian Automotive Association president Mohd Shamsor Mohd Zain said the entry of the China-based Geely and United States-headquartered Tesla into the Malaysian market served as a clear indication of the country's relevance in the regional automotive landscape.
He said the two carmakers, with their vast global experience and access to leading technologies, could introduce new ideas and ways of doing business to the local automotive sector, such as high-tech research and development (R&D) in products not available in the country.
"For example, electrification means a change in vehicle components, with more focus given to battery manufacturing and other specialised components for EVs.
"We would also see the industry adopting new skillsets and infrastructure suited to varying degrees of electrification - from mild hybrids to fully electric vehicles - besides reskilling or upskilling the automotive workforce, while opening up new opportunities for innovation, R&D and high-value manufacturing of components."
He added that with the right government support, infrastructure and policies in place, Malaysia was well positioned to be a regional hub supporting the global growth of EVs, given its strategic positioning and favourable economic conditions.
Malaysia is a major electrical and electronics manufacturing hub in Southeast Asia.
Therefore, he said, carmakers and automotive investors could seamlessly leverage this capacity to secure their supply chains for growing their production of next-generation vehicles (NxGVs).
'DETROIT' IN THE MAKING'
Geely and its Malaysian partner, DRB-HICOM Bhd, have announced plans to develop an Automotive High-Tech Valley (AHTV) in Tanjung Malim, Perak, into Malaysia's next-generation vehicle hub, covering the extensive automotive and mobility solutions value chain.
It is expected to bring a collective investment of RM32 billion from various parties.
Prime Minister Datuk Seri Anwar Ibrahim announced on July 18 that Geely would invest US$10 billion to turn Tanjung Malim into the region's largest auto city.
Shazali said Geely's commitment would create a tremendous spillover effect for not only Tanjung Malim but the country in general, contributing to an increase in productivity and efficiency.
"The technology transfer from China will be enormous, spinning off to other related industries as well, thus contributing to Malaysia's competitiveness on the global stage," he said.
"With the massive investment, Tanjung Malim can be like Detroit in the United States, which is nicknamed 'Motor City'," he added.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz previously said AHTV was the only automotive cluster in Malaysia to be officially recognised as an NxGV and energy-efficient vehicles (EEV) hub.
Hence, the government was offering an attractive incentive package, including tax exemptions for land development, the manufacture of parts and components, and the establishment of research centres and educational institutions, he added.
MALAYSIA-MADE EV?
Shamsor said Malaysia had a healthy domestic automotive market that promised growth prospects in terms of sales, while its industrial track record in the same sector strategically positioned the country as a potential regional hub for the production and assembly of new vehicle types.
"Today, countries worldwide are pursuing electrification of transportation to the best of their abilities. For a country like Malaysia, which has long believed in pursuing a localised automotive identity, we, too, are on the point of a major change in electrifying both personal and commercial transportation," he said.
Shazali said as Tesla expanded its presence in Southeast Asia, it would eventually look at opening a regional manufacturing hub, whereby Malaysia could have a huge advantage.
In his view, the technology and skilled-job opportunities created through overseas expansion into Malaysia - not just limited to Tesla but other EV makers as well - would strengthen the country's capacity and capability in the automotive sector so that it could potentially build and design its own EV car in the future.
"Look at Proton's history. It started as a rebadged car assembler but has since grown into a manufacturer that makes its own models. In the long run, we can manufacture our own EV," he added.
According to a report titled "Annual Update on the Global Transition to Electric Vehicles: 2022" by the International Council on Clean Transportation, Asean as a single market recorded sales of 39,000 EVs last year, up 165 per cent year-on-year.
Research by Counterpoint's Global Passenger Electric Vehicle Model Sales Tracker revealed that Thailand accounted for 58 per cent of the passenger EV sales in Southeast Asia last year, followed by Indonesia (19.5 per cent), Vietnam (15.8 per cent) and Malaysia (2.6 per cent).
Malaysia is now targeting to have 15 per cent of total industry volume (TIV) contributed by electrified vehicles - EV and hybrid - by 2030, and 38 per cent of TIV by 2040. -- Bernama
New Straits Times (August 2023). Malaysia as Asean EV powerhouse? https://www.nst.com.my/news-cars-bikes-trucks/2023/08/937203/malaysia-asean-ev-powerhouse