By SHAZNI ONG / Pic by TMR

The Malaysian Investment Development Authority (Mida) said it has approved a total of 396 projects in the automotive industry with investments worth RM20.5 billion since 2012 until last year.

Mida deputy CEO Arham Abdul Rahman (picture) said despite the growth, there should be no room for complacency for local industry players. He also said the government considers localisation as one of the important elements to further develop the local industry.

“Despite this achievement, there is no room for complacency. Advances in technology, changing consumer demands, increasing competition, rising disposable incomes and the proliferation of brands and products offer today’s industries more choice than ever before,” he said in his speech in conjunction with the Localisation Programme for Automotive Industry 2019 in Kuala Lumpur yesterday.

As of 2018, the local automotive industry currently has 27 vehicle manufacturers. It contributes about RM40 billion or 4% to Malaysia’s GDP, with a workforce of more than 600,000.

Arham added that the agency is looking forward to seeing more investments, especially in the transfer of technologies and expertise in creating new capacities and helping the creation of high-value jobs.

Meanwhile, the event — in collaboration with the Malaysian Automotive Association (MAA) — saw over 100 participants comprising MAA members, manufacturers and local vendors, and discussed among others, initiatives to increase localisation activities that will benefit all stakeholders as well as to encourage more investments in the industry.

“The government has always considered localisation as one of the important elements to further develop the local automotive industry,” Arham added.

MAA president Datuk Aishah Ahmad in her opening address said the automotive industry is one of the leading industrial sectors in the country.