The Automotive Industry


The Contribution

Malaysia marked its commitment to be an automotive producing nation through the establishment of Proton in 1983, and blooming into a full-fledged car manufacturer, introducing its first in-house design in the year 2000 – the Waja. Meanwhile, Perodua established itself as Malaysia’s second national brand in 1993, and has recently launched its first model to have its upper body designed in-house, the Bezza.

In 2014, the government announced the third edition of the National Automotive Policy, called the NAP 2014. The NAP 2014 focuses on a holistic development of the domestic automotive industry, to ensure a sustainable industry growth and market expansion.

Today, the Malaysian automotive industry has grown many fold, housing 27 vehicle manufacturers – producing passenger cars, commercial vehicles and two wheelers. It is an industry that contributes 4 percent, or RM40 billion to Malaysia’s Gross Domestic Product (GDP), a significant chunk of the economy that houses 641 parts and components manufacturers, more than 53,011 after sales businesses and provides jobs to a 736,632 strong workforce. Around 80% of the parts and components manufacturers within the domestic ecosystem are home grown, Malaysian-owned companies.

The industry has created high technology value in these businesses and talented individuals, who now have the opportunity to participate in vehicle & component design, manufacturing, quality management, vehicle service & repairs as well as new sectors such as recycling and remanufacturing.

While the vast industry creates direct opportunities mentioned above, the automotive sector spurs the development of supporting sectors, such as education, banking, finance, transportation and logistics.

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