Malaysia has set an ambitious target to become Southeast Asia’s electric vehicle (EV) production hub, building on its four decades of automotive experience and a robust semiconductor sector. Speaking at the E-Mobility Asia exhibition, Deputy Minister of International Trade and Industry, Liew Chin Tong, highlighted Malaysia’s plans to integrate its automotive and semiconductor industries, with the goal of becoming a top supplier of automotive-grade chips and EV components across the region.

As Southeast Asia transitions toward greener mobility, Malaysia aims to position itself as the region’s primary EV production hub. With a well-established automotive sector dating back to 1983 and a global reputation in semiconductor manufacturing, Malaysia is leveraging its strengths to lead the way in EV production and chip manufacturing for automotive applications. Deputy Minister of International Trade and Industry, Liew Chin Tong, sees this integration as key to Malaysia’s sustainable economic growth and EV industry development.

Liew Chin Tong noted that Malaysia is the sixth-largest semiconductor exporter globally, a position it aims to strengthen by focusing on automotive-grade chip production. Malaysia’s semiconductor sector already plays a crucial role in the global supply chain, especially in backend processes, which was underscored when U.S. automotive plants faced chip shortages during Malaysia’s COVID-19 lockdown. This reliance underscores Malaysia’s pivotal role in the automotive semiconductor industry.

Malaysia aims to rapidly expand its electric vehicle market share, targeting 20% of total industry volume (TIV) by 2030, 50% by 2040, and 80% by 2050. While challenging, Liew highlighted that global trends are shifting towards EVs, with the International Energy Agency noting only 2% global EV TIV in 2018. Malaysia is investing in EV infrastructure and policies to support this ambitious transition, including incentives for EV adoption and local manufacturing.

Contrary to popular belief, Malaysia is a net oil importer, ranking as the 21st largest globally. By shifting towards electric mobility, Malaysia aims to reduce its petroleum consumption and import dependence. This shift not only supports environmental sustainability but also strengthens Malaysia’s energy security, aligning with the country’s broader vision for a sustainable future.

Liew emphasized the importance of horizontal collaboration across the automotive and semiconductor sectors, aiming to create innovative automotive products and integrated circuit designs. Malaysia’s strategy involves cross-industry partnerships to advance circuit design and develop Malaysian-made automotive chips, enhancing its capability to export both EV parts and chips. This collaborative approach seeks to build a national portfolio of EV components, boosting Malaysia’s global competitiveness.

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The Malaysian government is committed to supporting its EV goals through policies that encourage the development and adoption of EV technologies. The launch of programs like E-Mobility Asia highlights Malaysia’s resolve to become a leader in electric mobility, setting a model for Southeast Asia. Government targets and regulatory support aim to establish Malaysia as a key player in the ASEAN EV landscape.

For Malaysia, becoming ASEAN’s EV production hub not only promotes sustainable mobility but also drives economic growth by capitalizing on the country’s semiconductor strengths. This strategic integration of automotive and semiconductor sectors positions Malaysia as a leader in Southeast Asia’s electric vehicle industry, paving the way for a cleaner, more sustainable future.

Malaysia aims to become the ASEAN leader in EV production by 2028, leveraging its strong semiconductor sector and targeting significant EV adoption by 2050. With cross-industry collaborations and government-backed policies, Malaysia is positioning itself as a central player in Southeast Asia’s sustainable mobility movement.

Sources: Liputan6, Head Topics (2024)

Keywords: Malaysia EV Production, ASEAN Electric Vehicles, Ambitious EV Goals