From Traditional Components To Smart Systems: MCE Eyes Sustained Growth In Malaysia's Auto Sector

By Siti Noor Afera Abu

KUALA LUMPUR, Jan 17 (Bernama) -- MCE Holdings Bhd has transformed itself from a traditional automotive components manufacturer into a more technology-driven company, reflecting the broader shift towards smarter and more connected vehicles.

Group managing director Dr Goh Kar Chun said MCE has more than 30 years of experience supporting the local and regional automotive industry, national automakers, as well as regional and international customers.

He said the group works closely with national automakers such as Proton Holdings Bhd and Perusahaan Otomobil Kedua Sdn Bhd (Perodua), in addition to international partners, to design, develop and manufacture automotive electronic systems that are increasingly integral to modern vehicles.

These, said Goh, include systems that enhance vehicle functionality, connectivity, and user experience, such as infotainment systems, smart cockpit solutions, and Advanced Driver-Assistance Systems (ADAS).

"With advances in automotive technology and the shift toward next-generation mobility, MCE supports automakers in their localisation efforts in Malaysia by progressively elevating our position along the value chain, moving beyond basic assembly into higher-value manufacturing.

“These are underpinned by in-house research and development (R&D), engineering and system integration capabilities,” he told Bernama.

MCE taps global partners to expand capabilities

Goh emphasised that MCE's partnership is a key part of how the group builds capability and expands its role within the automotive electronics value chain. 

The company works with international technology and Tier-1 partners through established joint ventures and strategic collaborations, including with a leading company in millimetre-wave radar sensor technology, which is critical for ADAS and next-generation vehicle applications.

“In parallel, we have also established joint ventures in non-automotive manufacturing with an international partner from Hong Kong, where our electronics and mechatronics capabilities are transferable.

“These collaborations allow us to accelerate capability building, provide faster access to new markets and support technology transfer, while selected non-automotive initiatives help strengthen MCE’s resilience through portfolio diversification beyond the automotive sector,” he said.

Goh said localisation goes beyond local assembly alone. It requires building local engineering, design and system integration capabilities so that more value can be created in Malaysia, in line with the objectives of the National Automotive Policy 2020 and the New Industrial Master Plan 2030.

He said that by strengthening engineering capabilities locally, MCE supports carmakers’ localisation efforts across both internal combustion engine (ICE) and electric vehicle (EV) programmes, while contributing to a more resilient automotive supply chain and supporting Malaysia’s aspiration to be a regional automotive hub,” he said.

Balanced Portfolio Across ICE and EV Platforms

MCE is currently supplying a range of automotive electronic and mechatronic systems for the newly launched Perodua QV-E, which marks MCE’s first entry into the EV segment.

The scope includes electronics-intensive systems, Goh said, adding that this milestone reflects the progress of the group’s longer-term strategy to move into more advanced automotive electronics and mechatronic solutions.

Whether supporting ICE or EV programmes, MCE’s focus has been on building strong in-house engineering, R&D and integrated manufacturing capabilities that allow them to support next-generation vehicle architectures.

Asked whether MCE is eyeing other projects in the EV segment, Goh said that the group is open to opportunities across all vehicle platforms, focusing on areas where they can deliver reliable, cost-effective and quality solutions.

He said the group’s focus is on projects where they can add value through design and engineering, prioritising programmes that support sustainable, long-term growth while maintaining a balanced portfolio across different vehicle platforms.

Policy support, stable volume bolster auto sector outlook

 Goh noted that the outlook for Malaysia’s automotive industry remains encouraging, supported by stable total industry volume and the policy direction outlined in Budget 2026.

He said measures such as the removal of import duty exemptions on completely built-up (CBU) EVs, alongside incentives to stimulate new-car purchases, are expected to support demand, particularly for national marques that form the backbone of the domestic market.

"We are well positioned to support this transition through our ongoing investments in engineering, R&D and manufacturing capabilities, while working closely with national and international automakers.

“Ultimately, as the industry strengthens and localises further, MCE grows alongside it,” he added.

-- BERNAMA