NAP 2020: A Roadmap To More Questions?

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NAP 2020: A Roadmap To More Questions?

The National Automotive Policy (NAP) 2020 has officially been launched. The NAP 2020 essentially expands on the guidelines of the outdated NAP 2014 and aims to futureproof Malaysia’s automotive sector over the next decade and become a regional leader in the areas of manufacturing, engineering, and research.

The NAP 2020 still appears light on specifics and concrete policies, though it aims to increase “research of new technologies, creation of business and job opportunities particularly for the SMEs, and the development of new manufacturing processes and value chains within the local automotive” sector.

Besides that, the NAP 2020 pledges improvements in existing policies measures and implementation, while gearing towards increased R&D activities, providing support for the national car projects, and expanding exports and investments.

If that sounds vague to you, it’s because it is. So it’s best view it not as a Policy, but as a strategic roadmap for the automotive sector for the next 10 years – because policy changes are at best going to take place in stages in the coming years.

However, in brief, here are the key takeaways:

  • The NAP 2020 has “three main directions”: Technology and Engineering, Investment, and Market Expansion.
  • The NAP 2020 has “three main strategies”: Value Chain Development, Human Capital Development, and Safety, Environment and Consumerism.
  • It consists of seven roadmaps/ blueprints that detail out the implementation plan.
  • The roadmaps will continuously be reviewed and updated to keep up with new tech and global trends.
  • Customised incentives mechanism (which opaquely dictates the pricing of new CKD vehicles) will be continued based on cost-benefit analysis and investor proposals.
  • The government will introduce elements of consumer rights and protections related to spare parts, maintenance, and recalls.
  • The NAP 2020 will be followed through with numerous outreach campaigns, conferences, and stakeholder engagements.

The government has, however, identified key targets which it hopes the NAP 2020 will achieve by 2030.

  • Total GDP Contribution: RM104.2 billion (Currently around 40 billion)
  • Total Industry Volume (Passenger and Commercial Vehicles): 1.22 million units (604.2k in 2019)
  • Total production volume (Passenger and Commercial Vehicles): 1.47 million units (571.6k in 2019)
  • Exports of Motor Vehicles (CBU): RM 12.3 billion
  • Exports of New Automotive Parts & Components: RM28.3 billion
  • Exports of Remanufactured Parts & Components: RM10 billion
  • Total new employment opportunities: 323,000

In addition, the NAP 2020 also provides provisions for the establishment of a full-fledge Vehicle Type Approval (VTA) centre, Electric Vehicle Interoperability Centre (EVIC), an Autonomous vehicle test centre, Virtual Design Centre, and the establishment of a new Technology Academy.



Arvind

Arvind

Writer

Arvind describes a car in the same way he would describe a woman; this is not very healthy. Unlike the eternal sunshine of a spotless mind, soulful naturally-aspirated soundtracks and trigger quick (self-applied) gearshifts are all that fill the darkest recesses of his mind. Arvind is still trying to understand women...


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