Finally, the investment, trade and industry ministry may yet dump the legacy issues that have held back the nation’s automotive industry for the past 20 years while Thailand zoomed ahead.
Last week, the minister, Tengku Zafrul Aziz, revealed plans to review and update the National Automotive Policy 2020 to ensure it remains relevant in the future.
He acknowledged that there had been many new developments in the automotive world, especially regarding energy-efficient vehicles , and electric vehicles, since NAP 2020 was announced.
“I do think that in any planning, especially over the long-term, we need to be dynamic and open to implementing the necessary changes,” he said at the launching of Proton’s Rahmah service campaign.
Tengku Zafrul said Miti is in talks with industry players to review the policy, and it would also hold discussions with related agencies including the Malaysia Automotive Robotics Internet of Things (MARii) to look at matters raised by the industry regarding the incorporation of new technologies.
He said that the updates are necessary given the rapid changes that have been coming about in the industry and that this will ensure policy keeps pace with developments.
In that context, an industry veteran confirmed that a task force between government ministries including the finance ministry and Miti has been set up about a year ago to refresh the NAP and address the disruptions since 2020.
The current policy was released in February 2020 as an enhancement of NAP 2014.
It looks like Tengku Zafrul and the government might succeed because, firstly there’s an acknowledgement of reality that Malaysia’s NAP is not gaining traction and this is the first step toward achievement of a goal.
Secondly, as an elite member of the royal households and with a proven track record in the C-suite of the Maybank group, the public would mostly trust and support his altruistic mission to improve the nation’s economy. Just as we Malaysian motorists were proud of former prime minister Dr Mahathir Mohamad’s national car for the first 10 years.
Of course, obstacles lie ahead.
It might be too late for some giant investments that went to Thailand instead of Malaysia in the past three years. Others, like privately-owned Chinese car maker, BYD, were more aggressive and nimble. It has recently completed a giant facility in Rayong, Thailand.
One disruption that the EV has created is the mental state where EV owners are concerned more about driving range, charging points and battery state of health.
Another disruption is the global shifts of market share and technological innovation.
For example, in 2020, world market share of exports was:
Germany, exporting approximately US$165.9 billion worth of cars
- Japan, exporting approximately US$91.6 billion worth of cars
- United States, exporting approximately US$50.4 billion worth of cars
- Mexico, exporting approximately Us$34.4 billion worth of cars
Today, in terms of the volume of cars, Japan is the number one car exporter, Germany third and South Korea fourth.
China, at a close second, is likely to clinch the title of the world’s top car exporter in sales volume by year end.
A Malaysian auto industry veteran responding to the news about the refresh of the NAP offered the following advice that hybrids especially plug-in hybrid electric vehicles (PHEV) are essential for a practical transition for full EV. He offered the following advice:
It needs time to achieve a realistic transition from internal combustion engine to full Battery Electric Vehicle (BEV). Motorists need time to gain confidence in EV and issues of range anxiety and EV charging.
Until the 10-month lead time for relevant agencies to approve an application to install a public EV charging is sharply cut, the time to roll-out a comprehensive charging network is going to be an issue.
The transition must incorporate milestones to decarbonise cars in tandem with the European Commission’s CO₂ emission performance standards for cars and vans for 2025 and 2030.
The task force should address the quality of fuel because this determines exhaust emission. It serves no purpose if you want clean exhaust emission but you don’t have clean fuel.
Hybrids, especially plug-in hybrids will lower carbon emissions especially in a low-speed urban environment when the vehicle will automatically switch on to full EV mode and deliver zero carbon driving.
The transition must also provide consumer protection: the level of vehicle standards must comply with the latest safety standards meaning there should be Autonomous Driving features at least at Level 1 and moving to Level 2.
Protecting consumer safety for high-voltage hybrids and BEVs should be addressed for the transition. The car’s specifications regarding safety standards and provision of Advanced Driving Assistance Systems must be included in the transition.
Human resources must be developed. You may have the most advanced technology cars in the world but people are not yet trained to isolate high-voltages in plug-in hybrid vehicles (PHEV) and battery electric vehicles (BEV). Or how to prevent and fight a super-hot lithium battery fire.
The technical and vocational education (TVET) programme must initiate a curriculum for New Energy Vehicles. Fortunately, the human resources ministry has taken the first step in cooperation with Bermaz Auto Bhd which launched its EV training institute using Kia’s EV6 as the platform and a combination of Kia’s training programme and the UK-based Institute of the Motor Industry EV syllabus.
A long-time Asean-based auto industry analyst and consultant for European automotive participants who didn’t want to be identified, was more circumspect when asked for his opinion.
“Your minister is a banker and economist but doesn’t have an automotive background. He is a member of Umno, which doesn’t have the best membership and which has also lost some of its appeal due to corruption.
“Possibly he will be better than most ministers who have tried their hand in the automotive sector. But he is a newbie. Let’s see what will happen in the next three to five months.” - FMT
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The views expressed are those of the writer and do not necessarily reflect those of MMKtT.
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