Thursday January 18, 2018
03:44 PM GMT+8

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(From left) Datuk Zainal Amanshah, Datuk Dr Loga Bala Mohan, Datuk Mustapa Mohamad and Datuk Idris Jala at the networking event by InvestKL, February 11, 2015. ― Picture by Choo Choy May(From left) Datuk Zainal Amanshah, Datuk Dr Loga Bala Mohan, Datuk Mustapa Mohamad and Datuk Idris Jala at the networking event by InvestKL, February 11, 2015. ― Picture by Choo Choy MayKUALA LUMPUR, Jan 18 — The local automotive sector rose in terms of production, market penetration and exports of parts and components in 2017, said the International Trade and Industry Ministry.

The sector also achieved its efficient energy vehicle (EEV) market penetration target for the fourth year in a row, surpassing its 50 per cent target, said Minister Datuk Seri Mustapa Mohamad during a briefing on sector’s 2017 performance and outlook for this year

“The acceptance and awareness of energy efficiency is not a function for a single ministry, but signals the support and participation of all government institutions, automotive OEMs and vendors, as well as the public at large,” said Mustapa.

The industry has also exceeded its 2017 target for EEV production of 260,000 units, with 308,807 units built. In 2016, EEV production also broke its initial target of 230,000 with 247,912 units produced.

Exports of automotive parts and components is also expected to see an increase in 2017 as the industry already recorded a total export value of RM9.3 billion as at October last year.

The Malaysia Automotive Institute (MAI) expects the figure to surpass the RM12 billion for full year, beating the RM11.2 billion in 2016. MAI is targeting for this to be RM12.5 billion this year.

Touching on the sector’s workforce, Mustapa announced that 23,444 foreign workers were replaced with local workers last year. A total of 27,175 jobs were created, beating the 25,850 jobs in 2016.

The minister also said  the National Automotive Policy (NAP) announced in 2014 will be reviewed this year for greater focus on exports, particularly for complete built up (CBU) units.

“I have a number of wishlist when introduced NAP 2014, one to see a lot more export car components and CBUs  exported from this country.

“I am not happy with the CBU exports. The number (of exports) is hovering around 20,000. From what I see, it won’t increase too much in the next few years. Hopefully we can see bigger CBU exports after the next five years,” he said.

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