KUALA LUMPUR: The National Automotive Policy 2020 (NAP 2020) needs to provide more clarity on incentives for investors and support for energy efficient vehicles such as hybrids, said automotive industry players.
In the new policy, the customised incentives mechanism will be continued based on cost benefit analysis of specific business proposals by investors.
Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad told The Star that to attract investors, the Goverment needs to come up with good incentives like other Asean countries.
"Currently, the customised incentives is dependent on proposed potentials like export and production plans. Our concern is that the customised incentives mechanism is not clear. Investors need clarity on incentives before commiting to investments. The Government should have menu-based incentives," she said.
Deputy International Trade and Industry Minister Dr Ong Kian Ming had said incentives for investors would be discussed soon.
"The incentives will be discussed in one of the seven roadmaps that we are rolling out (under NAP 2020) - everything will be put into context within the ABDC (Automotive Business Development Council) where all the incentives are processed together with all the stakeholders. We are not at the point where we can announce those incentives yet," said Dr Ong at a media conference at the launch of NAP 2020.
UMW Toyota Motor (UMWT) president Ravindran K. also said he hoped that the government will continue to give incentives for a sufficient length of time.
"This will help to justify investment and provide reasonable returns on investment," he said in a statement.
With the Energy Efficient Vehicle (EEV) specifications being updated, Ravindran hopes that ample time will be provided before implementation for proper review.
He said, “We believe that our Bukit Raja Plant is equipped with automation, skilled manpower and the capacity to move align with the government's vision developing our industry into IR4.0”.
Ravindran also commended the NAP 2020 objective of reducing carbon emission from vehicles by improving fuel economy level in Malaysia by 2025 in line with the ASEAN Fuel Economy Roadmap of 5.3 Lge per 100km.
“UMWT is planning to introduce more locally assembled hybrid vehicles in the future here in Malaysia”, said Ravindran K.
"We urge government to support in increasing the incentives provided to spur the hybrid market in Malaysia," he said.
Meanwhile, second national carmaker Perodua has responded positively to NAP 2020, citing the government's consistent policies to advance the Malaysian automotive eco-system.
"This is apparent in the continued support for component localisation, which is the backbone of the country’s automotive industry," said president and CEO of Perodua, Datuk Zainal Abidin Ahmad.
Among the key points in the NAP 2020 is the enhancing of the manufacturing and aftermarket sectors within the automotive and mobility sector which includes Next Generation Vehicle (NxGV), Mobility as a Service (Maas) and Industrial Revolution 4.0 (IR4.0).
"Over the past decade, Perodua purchased a total of RM43.5 billion worth of components from local suppliers – with RM5.4 billion last year alone – and this year we expect to spend nearly RM6 billion on locally-sourced automotive components.
"This volume sustains and fortifies the Malaysian automotive eco-system, contributing to the economy, jobs and nation-building," said Zainal.
As for local Mazda vehicle distributor Bermaz Auto Bhd, the company's marketing head Lee Ai Hoon said its current models are already in line with NAP 2020 in terms of the new requirements for connectivity and active safety.
"Two of our locally-assembled Mazda cars have high local content which allows them to be exported to other ASEAN countries," said Lee.
National automaker Proton is also lauding the NAP 2020's focus on Next Generation Vehicles (NxGV).
In a statement, Proton CEO Dr Li Chunrong said the company is able to leverage on its shareholder strengths – giving it access to local ecosystems via DRB-Hicom and access to new technologies via Geely Auto Group, to seize opportunities presented by NAP 2020.
“The unveiling of NAP 2020 shows Malaysia is moving towards the adoption of new technology vehicles featuring electric and hybrid powertrains as well as autonomous and connectivity technologies. Proton will also continue to work with local vendors and promote investments in new technologies, especially through strategic collaborations to infuse technical capabilities and expand commercial viability," he said.
Mercedes-Benz Malaysia president and CEO Dr Claus Weidner also welcomed NAP 2020's focus on NxGV.
"The development and production of EEVs and NxGV with increased levels of automation is an explicit encouragement by the government on future mobility in Malaysia and we see the NAP benefitting all players in the automotive industry," said Weidner.
