An overview of the NAP 2020: Directions and Strategies

The National Automotive Policy (NAP) 2020 serves as an enhancement of NAP 2014, aiming to continue the development of the automotive industry towards future mobility technologies, and making Malaysia a regional leader in manufacturing, engineering, and technology.

To ensure impactful deployment of the NAP 2020 initiatives, three Directions and Strategies were formulated. They serve as a guideline for the government and the industry stakeholders in expanding the capabilities of the local automotive sector as new technologies continue to emerge.

Let’s take a closer look at the Strategies and Directions:

Direction 1: Technology and Engineering

The shift towards a connected, autonomous mobility lifestyle is a global phenomenon; hence the focus in technology and engineering to facilitate and expand the scope of the automotive sector to include Next Generation Vehicles (NxGVs), Mobility-as-a-Service (MaaS), including Industry 4.0 compliance. This initiative will also further build on the focus on Energy Efficient Vehicles (EEVs) – allowing research and development in future powertrains such as Electric Vehicles (EVs) and Fuel Cell Vehicles (FCVs).

The development of critical components of NxGVs will be implemented in phases to allow a smooth transition from traditional vehicles to Connected and Autonomous vehicles:

1. Phase 1: 2020-2024

a. Continuous development of existing technologies derived from NAP 2014.

b. Begin development of various technologies and processes such as Additive Manufacturing, Battery Management System (BMS), and Recycling Processes.

2. Phase 2: 2025-2027

a. Begin development of advanced technologies such as Advanced Communication Protocol, Digital Twin, and Artificial Intelligence 2.

3. Phase 3: 2028-2030

a. Begin development of critical infrastructures required to test NxGVs such as Charging Infrastructures, Vehicle-to-Everything (V2X) Communication Module, and Modular-based Battery Swapping Technology.

Direction 2: Investment

In line with Direction 1, Direction 2 focuses on investments in high technology adoption in areas such as EEVs, Autonomous Vehicle (AV) test centres, and in-house design centres to encourage the creation of high-value jobs while attracting global interests from global players.

Direction 3: Market Expansion

New and specialized business opportunities arising from the introduction of new elements such as NXGVs, MaaS, and IR4.0 will provide opportunities for local business owners to gain access to global markets. The availability of new business platforms such as e-commerce provides new ways for our automotive business owners, parts and components suppliers, and aftersales to penetrate new markets.

Strategy 1: Value Chain Development

This Strategy aims to enhance the value chain competitiveness of Malaysian companies through the deployment of smart manufacturing technologies such as system integrators, Big Data Analytics (BDA), and Artificial Intelligence (AI) which can lead to higher cost efficiency over time, increasing profit margin and product quality.

Strategy 2: Human Capital Development

The advent of future mobility technologies leads to the restructuring of human capital development programmes to include future-specific modules such as robotics, vehicle telematics and connectivity, and automation. The introduction of these new modules will facilitate the development of an Industry 4.0-compliant talent pool to ensure our automotive industry remains sustainable and competitive.

Strategy 3: Safety, Environment, Consumerism

New technologies such as NxGVs raise issues in areas such as network security, data protection and privacy, through the introduction of new standards and regulatory frameworks to protect consumers and the environment.

New environmentally friendly manufacturing processes will also be continuously promoted through the utilization of Industry 4.0 technologies, in line with Malaysia’s commitment to the United Nations Framework Convention on Climate Change (UNFCCC).

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