Categories: Business

Do not make the automobile talent of Malaysia a waste

A few weeks ago, I looked through the news on Wapcar.my that a cabinet minister revealed the names of several national policies related to climate change and the auto industry. He cited these policies to support his stance that Malaysia’s economic development is on track.

I was appalled. The policies he mentioned were long surpassed by events. For example, the National Automotive Policy was overwhelmed by the persistent protectionism of the National Automobile Project, even as the Project stifled the growth of the electric vehicle (EV) industry. Will the production of new cars be influenced? Or is it the right time for the development of used car Malaysia?

The national car has passed its infancy and is going strong on its 37th anniversary. Both national car lines were born in the era of the internal combustion engine. 

China is now the world’s largest producer of electric and combustion cars and a source of technology for small electric vehicles. This broke Japanese and European dominance over the non-American auto industry. 

This means that electric vehicles are thriving in Thailand and Indonesia with investment from China and Korea, while Malaysia is absent due to outdated policies. 

However, Malaysia got some respite when China’s Great Wall Motor Company announced earlier this month that it would invest in Malaysia to produce a wide range of cars, including the Ora Good Cat EV. 

At the official launch in Kuala Lumpur, the company’s ASEAN President Zhang Jiaming said the Malaysian market will be developed in line with the region’s new energy strategy. He said GWM’s range of retro fashion cars, city SUVs, off-road SUVs and pickup trucks will be launched to meet market demand. 

Cui Anqi, General Manager of GWM Malaysia, added, “We will continue to grow the Malaysian market by increasing investment in the country by performing localized assembly through cooperation with Go. Auto Group. 

But Malaysian policymakers, be warned. GWM pulled out of India last month after two years of going nowhere with a $1 billion proposal to produce electric vehicles there. 

On top of that, GWM has a car factory in Thailand and its Ora Good Cat EV is selling like hotcakes due to Thailand’s open market fuel prices (approximately RM4/liter of RON95 petrol). 

What Malaysia needs to do is update and adjust our policies regarding the auto industry and include both incumbents and new entrants. 

As one industry participant puts it: “Some of our road traffic regulations and compliance standards are outdated and we need to modernize them, especially when it comes to electric vehicles. mini from China.

Some of Southeast-Asia countries, like Vietnam, Thailand, and Indonesia, are becoming the trend-leaders thanks to their authorities, who are aware of emerging standards as well as cutting-edge fashion. I noticed that mini electric vehicles from China are exported to countries like Denmark, Italy and USA with small engine sizes from 15kW to 29kW and top speeds less than 100km/h. 

On another note regarding vehicle standards and outdated government agency standards, I was once involved in an initiative of the  Automotive Institute of Malaysia (what is now known as Malaysia). Automotive Robotics and Internet of Things Institute or MARii)  to retrofit an older Proton with a  battery and powertrain from an electric vehicle like the Nissan Leaf or even a Tesla. 

Our team discovered strange things like Malaysia’s ban on the import of used power supplies. We also found that this regulation was proposed by car manufacturers, who probably wanted to increase the barrier to entry. 

Other regulations are also too restrictive for car enthusiasts to retrofit vintage cars and rehabilitate them as electric vehicles. In practical terms, this is roughly equivalent to applying for a vehicle type approval which costs between RM300,000 and RM400,000 each. 

In contrast, converting antique and collectible cars into electric vehicles is a growing industry in the UK, Europe and the US. Even Prince Harry attended his wedding in a Jaguar E-type Zero, a vehicle made by Jaguar Land Rover that uses a classic E-style frame and body with power from the Jaguar i-Pace electric car.

Before we get into complex topics like industrial policy, why not allow workshops to retrofit classics and big bang cars into battery-powered electric vehicles and transmissions from the Nissan Leaf, Tesla, or other electric vehicles from Europe and China? 

These local manufacturers will, of course, be subject to modernization regulations and standards such as those in force in the UK. 

In the UK, an EV converter will cost from RM45,000, while conversion companies will turn an old Rolls Royce, Bentley, and other full-size cars into an EV. 

In the Philippines, thousands of skilled workers are employed to build the country’s unique Jeepneys. In Malaysia, we have the opportunity to engage our skilled workforce in electric vehicle transformation with the benefit of learners learning IT, software and mechatronics skills. 

The long-term goal is to bring the Malaysian auto industry into a new era of electrification and create more high-value-added jobs for Malaysians instead of losing these talented workers to China, Thailand, and Indonesia.

We are glad to exchange ideas with you here.

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