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The Malaysian government will focus on maximising employment opportunities and local skills development in its next National Automotive Policy (NAP) revision, in line with its target a “developed” economy by 2020.

The NAP was originally launched in 2006 to provide a regional focus for the country’s automotive industry. It was then revised in 2009 to reflect the increasing trade liberalisation within the region.

Despite these initiatives, government policy remains highly protectionist and its ‘approved permit’ system designed to help support the indigenous Malay population is highly selective and open to abuse. 

The next revision to the NAP will attempt to move the industry up the value chain, with a focus on skills development and more sophisticated manufacturing.

The company is targeting the creation of 180,000 new jobs by the automotive industry by 2020, evenly split between the original equipment industry and the aftermarket. Most will be skilled jobs such as designers, engineers, technicians and other skilled workers.

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By GlobalData