NAP 2020 launched, targets transformation towards connected mobility

The National Automotive Policy 2020 (NAP 2020) has been launched today by Prime Minister Tun Dr. Mahathir Mohamad. According to the policy booklet, the new policy is an enhancement of the NAP 2014, with an introduction of new technological elements that will assist with the development of the local automotive industry.

Also present at the launch was Datuk Ignatius Darell Leiking, Minister of International Trade and Industry (MITI). In his opening remarks, he said, “The NAP 2020 is a holistic policy that covers the comprehensive deevlopment of industry capacities, including the supply chain, human capital, indigenous technology, after market, exports, infrastructure readiness, standards, regulations and others.”

The NAP 2020 comprises of three directional thrusts and three strategies, along with a new overarching National Automotive Vision, with the aim of “making Malaysia a regional leader in manufacturing, engineering, technology and sustainable development for the automotive sector.”

NAP 2020 aims to transform the automotive sector towards connected mobility, with a focus on Next Generation Vehicle (NxGV), Mobility as a Service (MaaS), and Industrial Revolution 4.0 (IR4.0) – in line with the current trends in global markets.

Additionally, the NAP 2020 will also seek to spur development of systems and components within Automated, Autonomous and Connected Vehicles (AACV), as well as hybrid, electric, and fuel cell vehicles.

In terms of investment, the customised incentives mechanisms from NAP 2014 will be continued, and will be based on the cost benefit analysis of specific business proposals by investors.

The NAP 2020 will also pursue the direction of market expansion. The government will seek to introduce new measures to increase export development, not just for vehicles and components, but also for aftermarket and services sector. As part of the new policy, the government targets a total revenue of RM38.3 billion for the exports of new and remanufactured automotive parts and components by the year 2030.

Strategy wise, the NAP 2020 runs along the same vein as that of the previous policy. NAP 2020 seeks to enhance the competitiveness of the domestic value chain, by pursuing high-quality and high-technology products that meet future standards of vehicle manufacturers and consumer needs.

The NAP also emphasises on the development of the local talent pool, in tandem with current and future demands of automotive and mobility technology.

Lastly, the NAP 2020 will also promote the adoption of more environmentally-friendly technologies in addressing emissions concerns and vehicle safety. Elements of consumer rights and protection related to spare parts and services, such as maintenance and recall process, will also be introduced.

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Along with the launch of the NAP 2020, the government has also released seven road maps and blueprints, in complement of the main policy to detail out the implementation plan. According to MITI, the blueprints will be continuously reviewed and updated in accordance to the disruptive and evolving global trends, technologies, and demands.

“I’d like all of you to take this policy with a long term perspective,” said Darell Leiking. “While we address the current issues within our industry today, the NAP 2020 is truly about the long term, bigger picture that guides our thinking, capabilities and spirit towards driving the industrialisation of this great nation.”



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