Increased government initiatives to support holistic growth of domestic auto sector in 2019
Increased EEV penetration, exports, job creation, Industry 4.0 implementation are key highlights of 2018 automotive sector growth. A stronger domestic ecosystem has been developed towards export readiness and global competitiveness.
The automotive sector yet again affirmed its significance to the Malaysian economy by demonstrating overall growth from a multitude of angles, with growth cutting across OEMs, parts and component suppliers, after sales businesses, remanufacturers, their respective workforce talents as well as motorists and the public at large.
Dato’ Madani Sahari, CEO of the Malaysia Automotive, Robotics and IoT Institute, MARii (previously known as Malaysia Automotive Institute) briefed members of the media on the performance of the automotive sector in 2018, as well as the sector’s outlook in 2019, at the MITI agency’s headquarters in Cyberjaya today.
The event was officiated by YB Dr. Ong Kian Ming, Deputy Minister of International Trade and Industry (MITI).
In his speech, YB Ong concluded, “The automotive industry remains a catalyst towards developing a Malaysian workforce that is adept in technology and high value processes, synonymous with the capabilities of the advanced nations of the world.”
He further explained how the entire ecosystem must further transform to meet changing demands for future automotive products and services.
“The key figures presented today are a clear signal that the automotive industry intends to lead Malaysia’s drive towards emerging as a serious contender in the regional and global markets”.
Key Highlights in 2018
1. Automotive exports showed overall improvement by reaching record figures, while the domestic market showed signs of recovery:
- Parts and component exports hit historic highs of RM 12.1 billion in 2018.
- Vehicle exports rebounded from its decline in 2017, breaching the RM 2 billion mark for the first time (RM 2.08 billion).
- Remanufactured parts and components also recorded an increase to RM 523.1 million, a steady increase year on year since MARii started reporting the sector’s performance in 2016.
- Total Industry Volume (TIV) and Total Production Volume (TPV) increased to 603,664 and 572,471 respectively.
2. Significant increase in manufacturing and after sales jobs, with more career development options in high-skilled upstream careers:
- 64,839 new jobs created in manufacturing and aftersales – 5,829 from MARii’s own human capital development programmes, such as Industry Professional Certificate (IPC) and the Automotive Industry Certified Engineer (AICE).
- Industry 4.0 talent development became a key focus for MITI and MARii in 2018, with 2,433 participants benefitting from programmes covering product design & validation, data analysis, virtual reality, and automotive cloud computing applications.
3. Business productivity improved through MARii’s capacity building programmes:
- 590 parts and component suppliers have attained Supply Chain Level 3 and above, with 55 companies attaining the highest rating of Level 5, capable of in-house product and process design – achieved through the Lean Production System (LPS) and the Automotive Supplier Excellence Programme (ASEP) conducted by MARii.
- More than 1000 workshops and dealers enhanced their business acumen and best practices through MARii Workshop Transformation Programme (WTP) and Dealers Entrepreneurship Enhancement Programme (DEEP).
4. Increased public buy-in and awareness on future mobility, energy efficiency and vehicle safety:
- Energy Efficient Vehicles (EEV) penetration surpassed its 2018 target, hitting 62%, signifying public interest in fuel saving and carbon emission reduction.
- MARii’s flagship public engagement programmes reached 422,113 people in 2018, through the organization of the Malaysia Autoshow, Car Care Week and SafeCar programmes.
- Numerous autoshows held throughout the Malaysian calendar added tremendous value and choices for consumers.
Enhancing Capacity Building for Proton and Perodua
MARii also announced strategic programmes that were carried out with Proton and Perodua in 2018 to address human capital, supply chain and technology development, accelerating the alignment to Industry 4.0.
“The rebranding of MARii was specifically designed to connect the automotive sector to advanced manufacturing and connected mobility services, particularly for our national brands Proton and Perodua, that are highly dependant on local content from Malaysian parts and component suppliers.”, explained Dato’ Madani Sahari.
He further elaborated on a multitude of programmes, catering specifically to the various levels, functions and needs for Proton and Perodua:
1. For Executives and Engineers
- Automotive Industry Certified Engineer – Digital Engineering and Prototyping (AICE DEP).
- AICE Dynamic Transformation Programme
2. For Supervisors, Line Leaders and Operators
- Industry Led Professional Certificate – Standard and Advanced Automotive Apprenticeship (IPC Standard & AAP)\
- Fundamental Manufacturing DOJO Development @ MARii Resource Centre
3. Business & Financial Enhancement
- Suppliers Risk Management Programme
- Automotive Supplier Excellence Programme (ASEP)
- CEO/Owner Growth Mindset Programme (COGMP)
- Business Matching to Develop Export Capable Suppliers
- MARii Financial Turnaround Programme
4. Productivity Enhancement
- MARii Karakuri Programme
- Supplier Technology & Know-How Exchange Programme
- Lean Production System (LPS)
5. Towards Industry 4.0
- Additive Manufacturing & Generative Design Explorer (GDE)
- Augmented Reality (AR)
- Digital Engineering & Prototyping (DEP)
- MARii Design Centre
6. Towards Artificial Intelligence
- Telematics Development
Next Generation Vehicle Technology in focus for 2019
MARii is committed to strategic positioning of technology access points to cater to industry needs in the areas of talent development, manufacturing and research in next generation technology that includes connected mobility, advanced manufacturing, robotics, and big data analytics, in line with Industry 4.0 compliance.
“These elements are the key components in the soon-to-be-launched National Automotive Policy to further push the industry towards global competitiveness in a future digital economy that requires quick adaptation to latest technology”, explained En. Hairil Yahri Yaacob, Senior Director, Sectoral Policy Division, MITI.
Important stakeholders across the industry, academia and government can expect the deployment of the following technology access points in 2019:
1. Talent Development
- Industry 4.0 Academy – for Specialised TVET Programmes, Advanced Diploma, Associate Degree and Masters by Research
- MARii Satellites @ Centres of Competency – in Kota Kinabalu, Langkawi, UiTM Shah Alam, UPM Serdang, UKM Bangi, UCTS Sibu
- Lithium-Ion Batteries
- Electric Bus
- Manufacturing System Integration
- EV Interoperability Centre (EVIC)
- Autonomous Vehicle Test Bed (AVTB)
- Biodiesel Application Research Centre (BARC)