Malaysia Poised To Become ASEAN's Regional Hub For EV Manufacturing -- Liew Chin Tong

KUALA LUMPUR, Nov 12 (Bernama) -- Malaysia has significant potential to become a regional hub for electric vehicle (EV) manufacturing in ASEAN, thanks to its 40-year history in automotive production since 1983 and its strong semiconductor cluster, said Deputy Minister of Investment, Trade and Industry Liew Chin Tong.

He said the country aims to foster greater integration between the automotive and semiconductor industries, with the goal of becoming a leading hub for designing chips specifically for the automotive sector.

“Malaysia is a very interesting place; we are the sixth largest exporter of semiconductor products in the world. While we may not have a homegrown brand, we play a very big role especially in the backend,” he said in a keynote address before officiating the E-Mobility Asia exhibition here, today.  

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He shared that during his visit to Detroit, United States, last year, US Secretary of Commerce Gina M. Raimondo remarked in a meeting that when Malaysia went into lockdown during the COVID-19 pandemic, automotive factories in Detroit were forced to shut down.

“This is because the chips they relied on came from Malaysia and some semiconductor companies in Malaysia contributed substantially in global automotive chips.

“Therefore, when talk about automotive industry, especially the electrification of mobility, it is important that we do not work in silos or focus solely on individual verticals. 

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“I would like to see this industry cross in the horizontal manner, (fostering the) creation of new products, integrated circuit designs, and automotive chips that are proudly Malaysian. This will enable us to not only export automotive parts but also automotive chips,” he added. 

Meanwhile, Liew said the other aspiration is to reduce the overall national consumption of petroleum through the electrification of mobility.

“If you ask around, most people would think that this country is a net exporter of petroleum, which is not true. We are the net importer of petroleum and the 21st largest net importer of petroleum.

“I encourage you to think boldly and offer new ideas to help us explore different approaches, so that electrification becomes not just a business opportunity for manufacturers, but a national agenda aimed at reducing overall petrol consumption,” he said.

The Malaysian government has set a target for electric vehicles to make up 20 per cent of the total industry volume (TIV) by 2030, 50 per cent by 2040, and 80 per cent by 2050.

“While it looks ambitious especially given that we are starting from a low base, the International Energy Agency's annual Global EV Outlook highlights some key trends — EVs made up just two per cent of the TIV globally in 2018. 

“By 2022, this had risen to 14 per cent of TIV globally, and by 2023, it reached 18 per cent. Therefore, achieving 20 per cent of TIV by 2030 is not a far-fetched target, but it will require a lot of concerted effort. It will require us to be bold and think outside the box,” he said.

-- BERNAMA