Putting auto on the fast track

Nap 2020, Auto, Automotive, Economy, Corporate News, National Automotive Policy, Nap, Mahathir, Leiking, Fast Track, 2020, Vehicles

Under the NAP 2020, the government is targeting to grow the automotive industry's contributions to 10% of GDP by 2030. Read more: #NAP2020

Nap 2020, Auto

22.2.2020

Under the NAP 2020 , the government is targeting to grow the automotive industry's contributions to 10% of GDP by 2030. Read more: NAP2020

THE highly anticipated National Automotive Policy 2020 ( NAP 2020 ), which was finally launched by the International Trade and Industry Ministry on Friday, has set 10-year targets that the government believes will take the local automotive industry to the greater heights.

A crucial sector for the Malaysian economy, the automotive industry contributes just 4% to the country’s gross domestic product (GDP) currently. Under the NAP 2020, the government is targeting to grow that to 10% of GDP by 2030. Malaysia Automotive Robotics and IoT Institute chief executive officer Datuk Madani Sahari says local original equipment manufacturers (OEMs) are currently contributing less than 1% each to the economy. “The bigger picture is to grow exports of parts and components, as well as the new services that can be created because of mobility as a service. “Right now, we have about 641 vendors and we’re targeting to grow that to 900 in 10 years. All of this will create new business and job opportunities and create a spillover effect on the Malaysian economy; the NAP wants to show that shared prosperity can be achieved through the community.” Boosting the automotive sector’s contribution to GDP will certainly allow the country to improve its competitiveness both in the region and globally, especially against Thailand, which many global OEMs consider the automotive hub for Asean.Thailand’s automotive industry currently contributes approximately 12% to the country’s economy. Boosting vehicle salesAnother ambitious target under the NAP 2020 is that the government intends to double total industry volume (TIV) to 1.22 million units in 2030 from around 600,000 units currently. To achieve that, Madani says the local industry would need to be able to ramp up its total production levels. “TIV is a domestic sell. What’s important is total production volume, because this would include the number of cars exported. We have calculated TIV based on compounded GDP growth year-on-year. “We have also taken into consideration the safety measures that are being embedded into newer cars and the old cars that are no longer safe.” Under the NAP 2020, the government is targeting total production volume to hit 1.47 million units. A total of 571,632 vehicles were produced last year. Total vehicle sales finally exceeded 600,000 units in 2019 after failing to surpass that mark for three consecutive years, rising 1% year-on-year to hit 604,287 units. Back in 2011, it had been projected that TIV would hit one million units by this year. “That forecast will not be achieved this year because annual growth was initially projected at 3.5% annually; but the local automotive industry only managed to accomplish around 1.2%, ” says Madani. “There are numerous variables on why that target was not achieved.” On the sales outlook for 2020, the Malaysian Automotive Association (MAA) is projecting a TIV growth of less than 1% to 607,000 units. Commenting on the NAP 2020, MAA president Datuk Aishah Ahmad says the policies can help pave the way forward for the local automotive sector. MAA president Datuk Aishah Ahmad “Overall, I think the NAP 2020 is the future and is in line with the global trends. Asean countries are also focusing on the future trends. They’re looking at the next generation of vehicles. Where I’m pleased is the fact that the ministry will be taking a step-by-step approach as they start introducing next generation vehicles and new technology. Because if we’re not ready, implementing anything too soon will not be good for the industry.” While she admits it’s well and good to prepare and pave the way for the long term, Aishah is however hopeful that the government remains cognisant of issues facing the local automotive industry right now. “The present concerns that we have are the policies to excise duty hikes. It’s been held back for this year but what about beyond that? That creates uncertainty for the industry.” Last month, the government chose to postpone implementing a new formula on duties that will raise prices of completely-knocked-down (CKD) vehicles until next year, potentially saving car-buyers thousands of ringgit. The industry has a formula to calculate a vehicle’s open market value (OMV), which then has to be declared to customs. However, the government had gazetted a new formula on Dec 31,2019, one that included additional factors such as marketing cost, profit and royalty. Adding these items would increase the final (on-the-road) prices of cars. The new OMV formula only applies to CKD vehicles. Based on internal calculations, Aishah says the new tax structure would have hiked car prices by as much as RM33,000 for high-end cars. “What we’d like to reiterate to the government is to not ignore the present situation, ” she says, adding that the recent Covid-19 outbreak has impacted some automotive players. “Chinese car companies, especially, will be impacted because their supply chain will be affected. Hyundai and a number of other brands have already announced that production has been halted because their parts are coming for China.” For now, Aishah says it’s still too early for the MAA to revise its 2020 forecast, unless the situation worsens. In a report earlier this month, MIDF Research said the local automotive sector is unlikely to face supply disruption in the wake of the Covid-19 outbreak, despite having direct exposure to China. Malaysia Automotive Robotics and IoT Institute chief executive officer Datuk Madani Sahari. Hubei, the epicentre of the coronavirus outbreak, is one of China’s major automotive hubs. “Contagion to other provinces increases the possibility of extended plant shutdowns. “Component supply is a risk, given the complex automotive value chain and impact on downstream output.” The research house emphasises, however, that unlike natural disaster-driven crises such as the 2011 Japan earthquake and the Thai floods, supply disruptions could recover quickly as infrastructure and inventories remain intact. “Malaysia’s major source of completely-knocked-down kits and components, namely Thailand, has exposure to auto part imports from China, but mainly for replacements and supply to Chinese original equipment manufacturers’ local assembly, ” it says. We're sorry, this article is unavailable at the moment. If you wish to read this article, kindly contact our Customer Service team at 1-300-88-7827. Thank you for your patience - we're bringing you a new and improved experience soon! Read more: The Star

Dr M: Two more national cars, national motorcycle in NAP 2020 roadmapKUALA LUMPUR: Two more national cars and one national motorcycle will be developed under the National Auto motive Policy 2020 ( NAP 2020 ) roadmap, says Prime Minister Tun Dr Mahathir Mohamad. chedetofficial Do you still consider Proton a national car ? In economic terms, its called brand-bastardisation fakeproton chedetofficial darellLeiking Do you still consider Proton a national car ? In economic terms, its called brand-bastardisation fakeproton He never learned. Look where s Proton now. Toyota level? Ferrari?

Miti: National Automotive Policy 2020 to contribute RM104.2b to GDP | Malay MailKUALA LUMPUR, Feb 21 — The implementation of the National Auto motive Policy 2020 ( NAP 2020 ) is expected to contribute RM104.2 billion to the country’s gross domestic product (GDP) by 2030, according to the Ministry of International Trade and Industry (Miti). Launched by the Prime Minister Tun...

New vehicle tech to drive National Automotive Policy 2020, says PM | Malay MailKUALA LUMPUR, Feb 21 ― The National Auto motive Policy ( NAP ) 2020 which was launched today will incorporate three new advanced technology elements namely Next Generation Vehicle, Mobility as a Service and Industrial Revolution 4.0.  Prime Minister Tun Dr Mahathir Mohamad said...

Dr M: Third national car project under NAP 2020 needs private investorsKUALA LUMPUR: The third national car project under the National Auto motive Policy 2020 ( NAP 2020 ) is still waiting for investors, says Tun Dr Mahathir Mohamad. Work on public transportation than pushing for third national car. We fail we sell. Cuci tangan lepas tu bukak kilang baru. Only in Malaysia. At this current state, it's difficult to see PH will remain as government in next GE.

January 2020 inflation to rise amid higher transport fuel costs, says RAM RatingsIt expects Bank Negara Malaysia to cut the overnight policy rate again in the next six months to 2.50% for the year to fight risks posed by Covid-19. FMTNews RAM FuelPrice RAMRatings

NAP 2020 marks bold move to lead Asean auto sector | Malay MailKUALA LUMPUR, Feb 21 — The launch of the National Automotive Policy 2020 ( NAP 2020 ) marks Malaysia’s move towards becoming a regional leader in the automotive sector, particularly in the areas of manufacturing, engineering, technology and sustainable development. The 10-year policy was...



Covid-19: M'sia records highest number of recoveries in a day; 91 patients discharged on March 30 (Updated)

Fizo pertahan perjuangan rakan artis yang dikecam

Kelawar kembali dijual?

Nursahira didenda RM10,000, penjara 3 bulan

Man dresses up as a ghost in Terengganu to frighten young neighbours into staying at home during Covid-19 lockdown | Malay Mail

Ex-deputy Health DG slams minister over disinfection ‘publicity stunt’

Covid-19: M'sia records highest recovery in a day; 91 patients discharged on March 30

Write Comment

Thank you for your comment.
Please try again later.

Latest News

News

22 February 2020, Saturday News

Previous news

Singapore’s REIT hub ambition pays off with most foreign IPOs

Next news

Pasukan Audit Keselamatan pantau kerja kontraktor
Sharifah Sakinah, Zarina Anjoulie 'berdebat' di Instagram Live Woman arrested for shouting at police at Persiaran Surian roadblock Better to sanitise more than sanitise less, says Zuraida Ujian kali ketiga Jackie negatif Malaysia bincang dengan AS guna peralatan kesan Covid-19 Jadual giliran imam, bilal untuk anak Hubungan Nouri, Ajax terputus Covid-19: KKM siasat jemaah tabligh ke New Delhi 20 rakyat Malaysia sertai himpunan tabligh India, kata laporan | The Malaysian Insight Survey: Coronavirus driving real estate agents’ earnings down | Malay Mail UKM ikut jejak langkah JDT Dipindahkan ke hotel, bukan positif Covid-19
Covid-19: M'sia records highest number of recoveries in a day; 91 patients discharged on March 30 (Updated) Fizo pertahan perjuangan rakan artis yang dikecam Kelawar kembali dijual? Nursahira didenda RM10,000, penjara 3 bulan Man dresses up as a ghost in Terengganu to frighten young neighbours into staying at home during Covid-19 lockdown | Malay Mail Ex-deputy Health DG slams minister over disinfection ‘publicity stunt’ Covid-19: M'sia records highest recovery in a day; 91 patients discharged on March 30 Syed Saddiq says home robbed, lost RM250,000 in cash | Malay Mail Better air quality since first phase of MCO, says Tuan Ibrahim | Malay Mail 'Itu hanya cadangan awal Seniman' - Zed Zaidi | Harian Metro Tomok minta maaf... Man Raja Lawak nak agih RM50,000 kepada yang memerlukan