Slides from Madani Sahari's talk on Malaysia's National Automotive Policy (NAP) 2014 & the automotive industry at the Asian Automotive World Class Manufacturing Summit 2015, Jakarta.

1. 1
MALAYSIA AUTOMOTIVE INDUSTRY
TOWARDS SUSTAINABILITY
M. MADANI SAHARI
CEO, MAI

2. NAP 2014
Malaysia as regional hub for Energy Efficient Vehicles (EEV) with high
technology uptake among industry players for domestic & international
export.
Investment
 Hub for Energy
Efficient Vehicles
Market Expansion &
Outreach
 Manufacturer & After Sales
 Managing vehicle car price
Supply Chain Development
 Global Efficiency and Effectiveness
Safety, Security & Environment
 Whole Type Vehicle Approval
 Anti Theft
 Telematics
Human Capital Development
 Adequate & competent manpower
Technology &
Engineering
 In line with Latest
Technology
DIRECTION
 Carbon Reduction
 Fuel Efficiency
 Preserving Natural Resources
STRATEGIES
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3. NAP 2014 as an ENABLER TO GROW.
 Complete the local eco-system through domestic
direct investment. “Missing linkages” are strategic
industries.
 The key strategic areas are such as:
 Power train, transmission and related control
system;
 Die set and Mould base;
 Aluminum and Other Non Ferrous Casting
 Design engineering and prototyping;
 Vehicle, sub-system and component testing;
 Automotive grade steel; and
 Engineering Plastic. 3
BACKGROUND

4. MANUFACTURERS
- Plastic Moulders
- Extruders
- Forgers
- Pressworks
- Foundries
- Diecasters
- Machining
- Rubber Moulders
MAJOR
ASSEMBLERS
MANUFACTURING SECTOR
SUB
ASSEMBLERS
SUPPORTIVE SECTOR
TOOL
DESIGN
MACHINES
DESIGN
INTERMEDIATE SECTOR
HEAVY
FORGERS
HEAVY
CASTINGS MACHINE BED
MACHINE PARTS
LARGE MOULD BASES
TOOLS, DIES
& MOULDS
MAKERS
MACHINES
MAKERS
PRIMARY SECTOR
ROLLING
MILLS
STEEL
REFINERS
NON FERROUS
SMELTER
STEEL BARS & PLATES
ALUMINIUM
BRASS ETC
PETROCHEMICALSMELTERS
RESOURCE SECTOR
NATURAL
RESOURCES
PLASTIC
MATERIALS
WROUGHT
IRON
BILLETS
DESIGNERS
ENGINEERING
DESIGNERS
PRODUCT
DESIGNERS
AUTO MANUFACTURING MISSING LINKAGES
MISSING LINKAGES

5. MISSING LINKAGES.
 The key strategic areas are such as:
 Power train, transmission and related control
system;
 Die set and Mould base;
 Aluminum and Other Non Ferrous Casting
 Design engineering and prototyping;
 Vehicle, sub-system and component testing;
 Automotive grade steel; and
 Engineering Plastic.
5
BACKGROUND

6. NAP 2014 as ENABLER to GROW.
 Strengthen competitiveness of local automotive
industry
 Supply chain development – Process (Method,
Machine, Material, Management and Money)
 Human Capital development – Man
 Technology Development – General, Basic and
Specific for Process and Product.
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BACKGROUND

7. 7
ROADMAPS IN NAP 2014
There are 6 roadmaps developed to complement the
execution of the NAP 2014.
These roadmaps are namely:
1. Malaysia Automotive Technology Roadmap (MATR)
2. Malaysia Automotive Supply Chain Development
Roadmap
3. Malaysia Automotive Human Capital Development
Roadmap
4. Malaysia Automotive Remanufacturing Roadmap
5. Malaysia Automotive Authorized Treatment Facilities
(ATF) Framework
6. Malaysia Automotive Bumiputera Development
Roadmap

8. What is CENTRAL to NAP 2014 and GROWTH?
 Energy Efficient Vehicle.
 Power train technology – Refer to EEV slide.
 Related technology – Material (Lighter and yet
stronger)
Aluminum, Magnesium
Ultra High Strength Steel (Laser welding, Hot
stamping …)
Higher electronic integration
Design (less resistant, aero dynamics)
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BACKGROUND

9. What is CENTRAL to NAP 2014 and GROWTH?
 Green Automotive Lifecycle. Refer to Auto Lifecycle
slide.
 Manufacturing sector - Green process (lower
green gas, energy optimization..)
 After market – Refer to Aftermarket slide
Recycling, Remanufacturing, Regulated 4S
centers.
 Safety
 Malaysia is a WP29 member.
 Gradual implementation of the UN Regulation
 WVTA by 2015.
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BACKGROUND

10. NAP 2014: Target 2020
2020 As at Dec 2014
Total Industry Volume
(TIV)
1,000,000 units 666,465 units
Exports of Vehicles 150,000 units 21,040 units
Exports of
Components
RM 25 billion RM 14.2 billion
Employment 150,000 jobs 21,072 jobs
Supply Chain
Development
Level 5: 180 companies
Level 4: 330 companies
Level 3: 430 companies
Level 5: 5 companies
Level 4: 33 companies
Level 3: 277 companies
Note:
Level 5: Product Design Capable, Level 4: Process Design Capable,
Level 3: Statistically Stable Process
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11. RM 11.5b
worth of investment
8 OEMs
Investment from
332k
of planned capacity
RM 4.1b
worth of investment
8 OEMs
Investment from
70k
of actual capacity
Manufacturing Related Investment
Approved Investment
Realized Investment
Investments started in 2013
Expected completion by 2018
After Sales & Services Related Investment
Approved Investment Realized Investment
RM 2.6b
worth of investment
RM 0.8b
worth of investment
Investment from 6 Companies
In the areas of
• Automotive Design;
• Advance Material Development;
• Restoration;
• Motorsport;
• Distribution, After Sales & Services;
• Training;
• Education;
• R&D; and
• Remanufacturing
Investments started in 2013 and
expected completion by 2017
Achievement as at Dec 2014: Investments in 2013 and 2014
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12. • Total of 21 projects, RM120 Million in R&D.
• And 4 projects already commercialized.
Achievement as at Dec 2014: Technology Development
Better
Competitiveness
Reduce Cost Improve Quality
Enhance Productivity Improve Efficiency
• Advanced Electrode and Electrolytes
for Li Ion Battery
• Battery Management System
• Li Ion Battery Module Packing
• Automotive Composites
• Bus Tracking System
• Modular E-Bus Driveline System
• Market Intelligence & Technology
Assessment
• Li-Ion Manufacturing Scale Up
• Plastic VMould Design
• Flexible Roll Forming
• 3R System
• Lightweight Plastic Glazing
• ATM Diecasting
• Tool Wear Prediction
• Plastic VMould Process
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13. Achievement as at Dec 2014: Employment
5,538Industry Led Professional
Certificate (IPC)
1,764Automotive Industry
Certified Engineer
(AICE)
668
Automotive
Apprenticeship (AA)
105
Customized Company
Wide HCD (C-HCD)
TALENT DEVELOPMENT
8,075
MAI’s HCD
Programme
12,997
Direct Recruitment
from Industry
JOBS CREATION
21,072
TOTAL OF
With salary of 25% above
industry average
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14. 53ASEP
Companies
277LPS Companies
2,250Trained
Workforce
• Improved Productivity: 21.5%
• Cost Saving: RM 601.3 Million
• Lean Production System (LPS) programme was
developed under the platform of Malaysia-Japan
Economic Partnership Agreement (MAJEPA)
• ASEP was
developed
under the
platform of
Malaysia-
Australia
FTA(MAFTA)
Achievement as at Dec 2014: Supply Chain Development
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15. Bumiputera
Automotive Business
Opportunity Workshop
(BumiAUTO)
Bumiputera
Motorcycle Dealership
(BMD)
Bumiputera
Workshop
Development &
Transformation
(BWTP)
100companies
5companies
150companies
Improved Revenue of RM 83.6 Mil
Achievement as at Dec 2014: Bumiputera Development
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16. Achievement as at Dec 2014: Car Price Reduction (CPR)
3%
2016
2015
7%
2013
5%
2014
5%
2017
5%
In 2013, CPR
achieved 4.97%
reduction.
• In 2014, CPR achieved 7.01% reduction
• This reduction has benefited more than
81.5% of passenger vehicle sales in
2014.
As at May
2015, 4.6%
reduction
16.58%
ACHIEVEMENT TO DATE:
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17. 2015 2018 20252020
EURO 4 RON97
(Petrol)
EURO 4 RON95
(Petrol)*
EURO 5
(Diesel)*
EURO 5 RON95&97
(Petrol)*
2014
EURO 5 Diesel
• In 2014, 13 stations started the sales of
Euro 5 Diesel in southern Malaysia.
• From 3rd quarter 2015, roll out of EURO 5
diesel to nationwide.
Euro 4/5 Introduction Timeline
Diesel Euro 5 Rollout
Achievement as at Dec 2014: Euro 4/5 Implementation
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* Supply ability from domestic refinery

18. THANK YOU
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