Malaysian Auto Industry Investment Tops $10 Billion
When local automaker Proton was founded, local parts accounted for just 10% of a vehicle, but now it uses between 80% and 90%.
The Malaysian automotive industry has attracted RM32.9 billion ($10.1 billion) in investment since the sector’s inception some 30 years ago.
International Trade and Industry Deputy Minister Hamim Samuri tells Parliament the investment not only involves the assembly of vehicles and motorcycles, but also includes the bodybuilding segment of commercial vehicles and production of parts and components.
The workforce covering the vehicles, motorcycles and spare-parts production has reached 65,576 people.
“This is projected to be higher if you include the downstream (investment), such as (for) after-sales services, banking, insurance and logistics,” the parliamentary record quotes him as saying.
Hamim says the local industry was driven by domestic automakers such as Proton and Perodua, which started by assembling vehicle parts and components but now have acquired the technology to develop their own engines and transmissions.
When Proton was founded, local parts accounted for just 10% of a vehicle, but now the automaker uses between 80% and 90%. Hamim says Perodua is also using more than 80% local content in some models.
In the next National Automotive Policy due next year, growth will continue to be emphasized, Hamim says.
“This will include the development of technology and engineering, human-capital development and development of the supply chain that will support high-value-added activities such as design, prototype and production testing of critical components and spare parts, R&D and so on,” he says.
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