Nurul Azlyna | National Automotive Policy (NAP) 2020.

By Nurul Azlyna Mohamad Rasidi (CIFP, Bach.of Acc (Hons), CMI)

Nurul Azlyna Mohamad Rasidi (CIFP, Bach. of Acc (Hons), CII), my guest writer, shares the highlights for NAP 2020.

Her Summary on NAP 2020.

A long-awaited National Automotive Policy (NAP) 2020 was recently launched by Prime Minister, Tun Dr Mahathir. An enhancement and continuation of NAP 2014, the policy is expected to bring Malaysia’s automotive industry to the next phase of industrial competitiveness with the ultimate objective of making the country a regional leader in manufacturing, engineering and technology as well as to ensure sustainable development of the local automotive industry.

The rollout of the NAP 2020 is in tandem with the emergence of new technological frontiers affecting mobility landscapes worldwide. Under the policy, three key technological elements are introduced;

  • Next Generation Vehicle (NxGV),
  • Mobility as a Service (MaaS),
  • Industrial Revolution 4.0 (IR4.0).

According to Ministry of International Trade and Industry (MITI), NAP 2020 is projected to deliver an estimated contribution of RM104.2 billion to the Malaysian economy over a decade period. Apart from that:

  • Grows the total industry volume (TIV) to 1.22 million units by 2030;
  • Total production volume (TPV) to 1.47 million units;
  • Motor vehicle export value to RM12.3 billion;
  • Parts and components exports to RM28.3 billion
  • Remanufactured parts and components exports to RM10 billion.

The projection figures make NAP2020 as a “quite ambitious” plan given Malaysia’s TIV currently stands at about 600,000 units a year with barely single-digit growth.

The Malaysian Automotive Association (MAA) has projected the total industry volume (TIV) for 2020 to increase marginally by 0.5% to 607,000 units from 604,287 units in 2019.

Given some other challenges like the uncertainty in global economy, the on-going COVID-19 outbreaks, Malaysia’s slowing economy and persistent weakness in the ringgit may affect the automotive industry and the plan too.


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