This article first appeared in The Edge Financial Daily on October 15, 2019

Dr Li Chunrong
Proton Holdings Bhd chief
Executive Officer (CEO)
Consumers are becoming increasingly tech-centred. While energy efficiency and occupant safety will always take primacy, the application of connectivity is also significant. Within the topic of innovative enhancements, another pertinent area to note is autonomous technology which will be a key inflection point for the industry. We believe the success of the local industry hinges on new technology investments. While Proton is committed to investment in new technology, we believe the industry needs to cohesively take a similar approach so that we can grow our competitiveness as a whole. We hope that the NAP will help address some of these critical issues and help grow the pie for the industry.

We believe the NAP 2019 will map out a very detailed policy to nurture the local automotive industry. Its implementation, however, needs to be pragmatic in order to make Malaysia attractive for investors, if we are to reach any sort of regional competitiveness. Key areas of concern are the lead time for implementation, investment capacity for continuous technology development, overall research and development programmes related to new technology, and improvement in customer satisfaction. In addition, guidelines for special incentives, especially in technological investments, are equally crucial. It would also be great to see new energy strategies and how the policy intends to implement these strategies, if any.

In order to produce quality next-generation vehicles, hybrid, and energy-efficient vehicles (EEV), two core factors should be considered: time and funding for technological research. A sufficient time frame is crucial for Proton to make adjustments to our operations and business plans. Beyond that, the provision for financial support must also be strongly considered as investments in new technologies, and research and development programmes will significantly aid in elevating not just Proton’s capabilities and market but of the industry as well. New models and upgraded products from Proton have as much as possible aligned with the possible enhancement of the NAP. Continuity of such technologies is necessary for Proton to develop cohesive programmes with its business partners and key stakeholders.

One pertinent area highlighted in the policy’s current iteration is to increase value-added activities in a sustainable way. Proton continues to engage with the relevant organisations including government bodies to maximise active participation in the ecosystem, such as:

An area that needs more focus is the development of Malaysia as an EEV hub. While the awareness of EEV and sales of EEV-certified cars have significantly increased over the last five years, the local industry’s capability of developing and manufacturing related critical components or sub-systems remain arguably low.

In order to become an EEV hub in the region, the local industry must be equipped with capabilities to design and develop our own engine or powertrain system(s). Since 2004, Proton has been developing its own engines that have evolved over a series of improvements. In order to offer engines that comply with stricter regulatory standards (such as those set for EEV), new technologies and development measures are necessary.

Dr Claus Weidner
Mercedes-Benz Malaysia
President & CEO
As a long-term and committed investor in the country, Mercedes-Benz Malaysia sees much potential in the country’s automotive sector. We remain optimistic that the NAP will look at the entire ecosystem and implement policies to promote progress of the automotive industry sustainably.

Datuk Francis Lee Kok Chuan
Bermaz Auto Bhd CEO
Being a major car exporter in Malaysia, what we would like to see is that the government gives us the support for Mazda to invest more in Malaysia. We hope that the government takes this into account when it comes to excise tax. This is our wish. We are one of the biggest, if not the biggest, exporters of cars in Malaysia over the last three years. We hope the government recognises this when it comes to incentives for local car manufacturers, especially players like us which use Malaysia as a production hub in the region.

On how much excise duty do we think is reasonable? We leave it to the government to decide. Last year, we exported 12,000 units of CX-5 alone. Basically, what we are trying to say is, “Please give us a pat on the back.”

Hopefully, the government can encourage more car manufacturers to set up shops in Malaysia and export to the Asean region. As for us, we are already exporting to Thailand, Indonesia, the Philippines, Cambodia and Myanmar.

The excise duty ranges from 75% to 105%. The more localised your car is, the more rebate you will get. Of course, there must be a certain threshold that the excise tax cannot go below. It cannot be zero.

But again, I think it is not fair for me to say the quantum that I want. It is more about how we are going to encourage the Japanese to set up joint ventures with local vendors to create more jobs and employment opportunities. In my opinion, the more I do that (localised cars), the more excise duty rebate I should be getting.

Harald Hoelzl
BMW Group Malaysia
Managing Director
At BMW Group, we have always believed that the future of mobility is electric. That conviction echoes at BMW Group Malaysia and we are proud to be at the forefront of electrified mobility in Malaysia since 2015.

In just five years, we are proud to have delivered advanced electrified technology locally and begun the foundations to propel our automotive industry towards electro mobility. Premium electrified vehicles already make up more than 57% of the vehicles we deliver in Malaysia and we are only behind Norway, the leading country which is spearheading electro mobility in this achievement.

As per discussed by Malaysia Automotive Robotics and IoT Institute (MARii) CEO Datuk Madani Sahari recently, the NAP 2019 will include efforts to make Malaysia a hybrid and EEV manufacturer. This is a very welcoming direction for the future of the automotive industry in Malaysia. The world is moving towards electrified vehicles and it is only right that Malaysia does so as well.

The innovation in electrified vehicles is very new and changes the game in an industry that has been around for more than a hundred years now, so it is important that there is awareness created of the new innovation offered and its capabilities and benefits to the customer and across the business ecosystem as well.

Often, new innovation requires tremendous support from governments for it to grow, not only in the minds of customers but also for strong business cases for companies to kick-start initiatives. The NAP 2019 and Budget 2020 are in the driver’s seat to create this change.

While electrified vehicles are already in Malaysia, more needs to be done for the infrastructure and the ecosystem to support electric vehicles. We believe that some focus on the charging infrastructure as well as on the production of components for the technology is needed to raise our profile as one of the leading nations for future technologies in the automotive industry.

More can be done with the help of the Malaysian government and this is what we hope the NAP 2019 and Budget 2020 will address.