Kuala lumpur: Malaysia is pushing for original equipment manufacturers (OEMs) to collaborate with local vendors as part of its new electric vehicle (EV) policy, Deputy Investment, Trade and Industry Minister Sim Tze Tzin announced. The initiative aims to boost the entire value chain and strengthen the ecosystem, countering perceptions that the government is solely focused on protecting domestic companies.
According to BERNAMA News Agency, Sim emphasized that the government's objective is to build a robust ecosystem by encouraging foreign car manufacturers to engage with local vendors. Malaysia currently has 150 to 180 Tier 1 vendors and 640 Tier 2 and 3 components and parts manufacturers, which the government hopes will collaborate with international manufacturers to enhance capabilities and prepare to export components and parts.
Sim highlighted that the ecosystem supports not only local companies like Perodua and Proton but also serves a wide range of automotive brands, including those from Europe, Japan, and China. He pointed out the vast opportunities in semiconductors, noting that the transition from internal combustion engines to EVs and autonomous vehicles significantly increases the demand for semiconductor chips.
On the regulatory front, the Ministry of Investment, Trade and Industry (MITI) announced that starting July 1, 2026, all fully imported completely built-up EVs must meet two main conditions: a minimum motor power output of 180 kilowatts and a minimum cost, insurance, and freight (CIF) value of RM200,000.
Sim also revealed Malaysia's ambitions for Level 3 autonomous driving capability by 2030, with the Malaysia Automotive, Robotics and IoT Institute (MARii) spearheading the groundwork for this initiative. He stressed the importance of starting conversations around autonomous driving, given its rapid expansion in the United States from four cities last year to 40 this year, with another 60 anticipated next year.
The minister urged local industry players to prepare for the emergence of autonomous driving, emphasizing the necessity for the industry to upgrade skills and become suppliers of crucial components such as sensors, chips, and software. He envisions vehicles evolving into intelligent, software-defined platforms that are part of an expansive digital ecosystem.
Sim concluded by challenging industry leaders to think long-term, advocating for a proactive approach to autonomous technology. He encouraged planning beyond the immediate future to position Malaysia as a leader in the region's mobility sector transformation.