By Market Research Malaysia | Posted November 27, 2018
Minister of International Trade and Industry (MITI) Malaysia has targeted 7.7% growth of export value in the country’s export value, from RM 12.1 billion in 2018 to RM 13.03 billion in 2019. Ong Kian Ming, the Malaysian Deputy MITI, stated that parts and components is an area in the automotive sector which a lot of Malaysian manufacturers and vendors have an advantage in. Components related to chassis, suspension, and rubber, along with plastic or resin-relates are some key components that are exported by Malaysia. In addition to that, the ministry is also coming up with initiatives, aiming to connect Malaysian suppliers with international buyers in the country.
Ong also stated that the ministry is planning to set a new policy on remanufacturing, the process of refurbishing or restoring existing parts or components, which is going to be announced by this year. Remanufactured parts and components were recorded to have seen an increase to RM 523.1 million, showing a steady year on year increase. Remanufacturing is one of the areas that were identified as a potential area of growth in the country’s automotive sector since there is a lot of demand in Malaysia and also in the region to remanufacture automotive components in cars, trucks, and lorries.
Malaysia’s automotive sector has become one of the country’s key industries for the past few years. The sector played a significant role in the country’s economy, contributing 4.2% to Malaysia’s total gross domestic product. According to Malaysia Automotive, Robotics and Iot Institute (MARii), Malaysia’s automotive exports witnessed significant gains and reached record figures. Parts and component exports hit a historic high of USD 2.9 billion in 2018.
Public buy-in and awareness on future mobility, energy efficiency as well as vehicle safety has also been increasing, according to MARii’ report. More people in the country become conscious of climate change and the need to reduce carbon emissions. Thus, the Energy Efficient Vehicles (EEV) penetration in the country has surpassed its 2018 target, reaching 62%. MARii set an ambitious goal to reach 70% penetration for EEVs in the country for 2019.
Malaysia’s new vehicle market is keep on expanding until April 2019, growing by 6.2% to 49,964 units from 47,047 units in the same month of last year, according to the Malaysian Automotive Association (MAA). The data showed an overall positive performance in the first quarter of 2019, resulting in a 6% rise throughout the first four months to 193,028 units from 182,157 unites in the same period of last year.
Sales of passenger vehicles in the country went up by 8.3% to 176,448 units in the first quarter from 162,999 units in the previous year. While vehicle production jumped by more than 24% to 52,086 units in April from 41,839 units in 2018. This growth is also seen partly in anticipation of increase in demand ahead of the Hari Raya annual holiday period.
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