The Minister of International Trade and Industry, Datuk Seri Mustapha Mohamed will unveil the much awaited revised National Automotive Policy (NAP) today. Many quarters have kept on speculating on what the government will present in its revised NAP.
The government had underlined the automotive sector as it has been recognised as one of the major thrust to propel the nation towards achieving Vision 2020. It is also seen as a catalyst to boost other local industries such as primary and intermediate resources and support.
The Head of Research at Inter- Pacific Securities Sdn Bhd , Pong Teng Siew expects little changes from the much awaited NAP.
“Malaysia’s industrial sector has been quite lethargic of late and I think the government would not want to implement major changes that could have unknown results. Some degree of protectionism for local players would be maintained.
“I think that the government would not want to introduce major changes at this juncture,” said Pong.
One of the main challenges of the NAP is the local automotive sector lacks the scale and volume and this have caused unit costs to remain high. Another issue that the NAP must address is that the local automotive sector is not export driven.
One of historical focus of the NAP has been on developing a core competency in manufacturing which has neglected the supporting, intermediate, primary and resource sectors. These structural inefficiencies have hindered the ability of the automotive industry to maximise its ability to compete with its regional peers.
The new NAP is expected to address the automotive ecosystem as a whole in an effort to boost the automotive sector rather than focusing on developing and protecting national automotive manufacturers. If the government does this, the revised NAP will focusing on the development of the weaker or missing linkages needed to form a near self sufficient ecosystem.
“The revised NAP is also expected to emphasise on the concept of End of Life Vehicles (ELV) in an effort to resuscitate the manufacturing and recycling industry and revive the ‘after market’ going.
“The cycle is deemed completed when the recycled or remanufactured parts are channelled back into manufacturing,” said MIDF Research in a report.
The major end assemblers in Malaysia are currently only producing for domestic consumption which is relatively a small market if viewed from a global scale. If further linkages are established through the revised NAP, cost of production may be reduced and this could enhance the attractiveness of Malaysian vehicles on the global platform.
The NAP is also expected to address the establishment of Malaysia as a hub for regional Energy Efficient Vehicles (EEV’s). This has been identified as the way forward for the Malaysian automotive industry as Original Equipment Manufacturers (OEM’s) move towards the production of EEV’s.
The revised NAP needs to steer the Malaysian auto industry towards higher level of exports and promote an ecosystem that supports export growth. In addition, the NAP has to introduce concrete measures to make Malaysia a hub for the production of Energy Efficient Vehicle’s (EEV).
Ranjit Singh
Mon Jan 20 2014
Who is Prabowo Subianto, incoming president of Indonesia?
A wealthy ex-general with ties to Indonesia's popular outgoing president and its dictatorial past, looks set to be its next leader.
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.