Malaysia promotes the export of auto parts and components

Malaysia is keen to boost its domestic auto industry, continuing to contribute GDP growth by focusing on manufacturing and exporting auto parts and components.

The above comments were made by Malaysia's Ministry of International Trade and Industry (MITI) on the sidelines of the country's third domestic automotive brand launch event.

MITI believes that the automobile industry should not only focus on growth in new car production and sales, but also on the export of parts and components made by Malaysia. According to Minister Datuk Darell Leiking, this task needs to ensure development in parallel with vehicle production.

"Manufacturing parts and components is of equal importance to the success of the automotive industry, because it creates many business and career opportunities for Malaysians in high-value automotive chains." , said Datuk Darell Leiking.

Compared to vehicle assembly, the diversity of production processes, the diversity of specialization and the degree of complexity when producing parts and components becomes an important goal to promote adoption. technology, including the participation of small and medium enterprises.

Mr. Datuk Darell Leiking called on businesses to participate in many government programs to accelerate their ability in activities such as product design and production processes.

Malaysia's spare parts and components industry has reported total exports of over US $ 1.6 billion in the first half of 2019, reaching 52% of the yearly target of US $ 3.1 billion previously set. Exports grew in the last 5 years to 1.12 billion USD in 2014 to 2.88 billion USD in 2018 and are the strongest growth sector for Malaysia industry in 2018.

Meanwhile, the automotive industry continued to make a significant contribution to Malaysia's economy last year at 4.2% of its gross domestic product (GDP), achieving its goal of surpassing 2017. Malaysia has two umbrella brands. Domestic cars are Proton and Perodua. Currently, apart from Perodua, Proton no longer sees it as a national carmaker because China's Geely has bought most of its shares since 2017.

(according to Paul Tan)

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