Investment, Trade and Industry Deputy Minister Liew Chin Tong.
KUALA LUMPUR: Malaysia aims to transition from its long-standing role as a manufacturer of automotive components to become a key player in designing chips for the automotive industry.
This grand ambition is achievable, according to Investment, Trade and Industry Deputy Minister Liew Chin Tong, by leveraging the country’s expertise in both car manufacturing and semiconductor technology.
It can also reduce Malaysia’s dependence on petroleum and promote sustainability.
Liew said Malaysia not only has 40 years of experience in car manufacturing, but it also has a strong semiconductor cluster.
“We are hoping that there will be a horizontal crossing between the automotive and semiconductor industries, so that one day we will also be known for designing chips for the automotive sector,” he told reporters after the opening ceremony of E-Mobility Asia 2024.
“Electrification has a big role to play. If we can deal with that, we can address subsidy issues, petroleum consumption and balance of payments as the import bill is huge,” he added.
According to the National Energy Transition Roadmap, Malaysia targets electrified vehicles (xEVs) to account for 20% of total industry volume (TIV) by 2030, 50% by 2040 and 80% by 2050. While these goals are ambitious, Liew said they are achievable with a “concerted effort.”
Citing a report by the International Energy Agency, Liew noted that in 2018, xEVs made up only 2% of global TIV.
By 2022, this figure had risen to 14% and by 2023, it stood at 18%.
Having produced local automotive brands since 1983, Liew said Malaysia has a solid foundation and now is the time to “think big” to drive the exponential growth required for electrification.
Malaysia Automotive, Robotics and IoT Institute (MARii) chief executive officer Azrul Reza Aziz noted that the rise of electric vehicles (EVs) has spurred the development of a new sector and supply chain driven by innovation, particularly in battery technology and charging infrastructure.
He said MARii will be organising the Global Automotive Technology Exchange (Gate) expo, which is set to launch in 2025.
“Gate is an ambitious platform designed to establish Malaysia as a regional and global hub for automotive technology, specifically in the areas of EVs, connected mobility and next-generation vehicle (NxGV) innovations,” he noted.
EMA will operate under the pillars of Gate, providing a focused platform for EV production and green e-mobility awareness. Gate will take a broader approach, emphasising after-sales services, ensuring long-term support and innovation in the lifecycle of EVs and NxGVs.
Meanwhile, Prof Azizan Ahmad, a member of Universiti Kebangsaan Malaysia’s battery technology research group, urged the government to establish clear policies, considering both macro and micro perspectives.
“On the macro level, the government should look at policies, incentives for green batteries, and research and development,” Azizan said during a panel discussion.
He suggested Malaysia set its own standards to ensure that imported batteries meet quality and environmental criteria.
