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NAP 2019 to be implemented in three phases until 2030

NAP 2019 to be implemented in three phases until 2030


KUALA LUMPUR, Sept 16 — National Automotive Policy (NAP) 2019 to be launched soon, will be implemented in three phases till 2030 and it will also include efforts to make Malaysia a hybrid and energy-efficient vehicle (EEV) manufacturer, says Automotive, Robotic and IoT Institute (MARii) chief executive officer Datuk Madani Sahari.

He said the first phase, expected to run until 2023-2024, will ensure the continuity of NAP 2014 and other elements to prepare the country to become EEV producer.

“The first phase of NAP 2019 will emphasise on the improvement of policies to infuse with new technologies, including in terms of human capital and its competency,” he told Bernama.

On EEV, he said the first phase would focus on elements such as batteries production, management system, and the establishment of charging stations while the other two phases would focus on technological advancement, including 5G.

NAP 2019 will also see MARii shifts its EEV focus to the“next-generation vehicle” (NxGV).


EEV to be improved as the NxGV

Madani said among the differences between NxGV and EEV is it will provide “connectivity” that add value to the driving experience.

The NxGV which uses Artificial Intelligence (AI) will enable the creation of the new sector – “mobility as a service”.

The use of AI in the NxGV will push towards a safer, more efficient and high performance driving.

“Mobility as a service is a new sector, therefore, we cannot be left behind. Having said this, it requires a lot of programming, Big Data analytics, the Internet of Things and many others,” he added.

Mobility as a service can be referred to as a shift away from personally-owned modes of transportation and towards mobility solutions that are consumed as a service.

It is enabled by combining transportation services from public and private transportation providers through a unified gateway which creates and manages the trip and allowing users to pay for the service either via cash or online payment.

One of such services is e-hailing.

It was reported that the (full) definition of the NxGV in NAP 2019 would be made ready by early 2022 and the implementation would begin in 2025.

Madani said technologists had stated that automotive industry is the “mother of all industries” as it involves other sectors such as mechanical, electronic, engineering, chemistry and latest technologies.

“That’s why we understand why the Prime Minister Tun Dr Mahahtir Mohamad insists on having a new national car so that we can ensure that the automotive industry will be able to spin off all of these activities,” he added.


National car defined in NAP 2019

Dr Mahathir had last month said that the third national car should be capable of “hybridisation”.

“There is a need for the automobile industry to move away from petrol-based engines to hybrid and electric ones,” he said.

Thus, said Madani NAP 2019 would first define a national car, aims to make technology and engineering as a foundation to develop the country further.

“The definition will encompass six criteria, namely majority owners are Malaysian (majority equity holder), funding is from the private sector, and it uses 75 per cent of the local supply chain.

“It also has to use 98 per cent the local workers, firms involve (in the project) do their research and development in Malaysia and taking steps to follow NxGV as a service as well as the adaption of Industrial Revolution 4.0,” he said.

The criteria are applicable to current national car producers and a new national car that is under development.

Madani said the new national car would further boost businesses among local vendors.

“If we break apart each component in a car, there are more than 30,000 components and 80 per cent of it supplied by vendors. Thus with the new national car, we are not only adding value to our expertise in the field but also open new opportunities for the local firms.

“Besides that, the business plan for both national cars, Proton and Perodua, is to be marketed overseas, which is good for the country,” he said.


NAP 2014 achievement

Based on the achievement of the NAP 2014 that was launched on Jan 21, 2014, for five years until December 2018, Malaysia had recorded 62 per cent of the vehicles in the country had complied to EEV specifications while the export of components and spare parts rose sharply.

“If for 2014 we only recorded around RM4.6 billion, but up to last year our components export was valued at RM12.1 billion, an increase of more than 100 per cent.

“NAP 2014 had targeted the components export to reach RM10 billion and we had achieved that, and this year as at June, we recorded around RM7 billion, and we expect we can meet the target of RM13 billion,” he said.

NAP 2014 also saw Malaysia become a hub for overseas carmakers that have put the country in their business plans. Among them is Volvo that has made Malaysia as its hubs for manufacturing, purchasing, financial, spare parts and training.

The main key and strategy for NAP 2014 were as a prep for local automotive players in the government’s effort to liberalise the industry and it involves green technology, technology development, human capital development, market expansion and the improvement of the local automotive industry.