Revised NAP to be announced on Jan 15

by **Cals** Wed 13 Nov 2013, 13:59

Business & Markets 2013

Written by Charlotte Chong of theedgemalaysia.com

Wednesday, 13 November 2013 10:33

KUALA LUMPUR: The much-anticipated revised National Automotive Policy (NAP) is in the final stage of drafting, and will be unveiled on Jan 15.
According to the International Trade and Industry Minister Datuk Seri Mustapa Mohamed, the NAP will be unveiled once the green light is obtained from the Cabinet by year-end.
The NAP was supposed to be unveiled by the end of this year. However, the minister said it is not a good time to launch a major policy at the end of the year.
“It is a very important sector … more than half a million people are employed. Therefore, we have to ensure that it is done in a manner that will promote the development of the auto sector,” he told reporters after delivering a keynote address at the 4th Kuala Lumpur International Automotive Conference (KLIAC) 2013 yesterday.
Giving a hint on the revised NAP, Mustapa said its main focuses are to increase the competitiveness of the local automotive sector and for Malaysia to be an energy efficient vehicle (EEV) hub by 2020.
The NAP was first introduced on March 22, 2006 and it has been through two reviews — in 2009 and 2012.
The reviews were to facilitate the required transformation and optimal integration of the country’s automotive industry into the regional and global industry networks, in an increasingly liberalised and competitive world environment.
Mustapa said the sector is facing many challenges, and had recorded a trade deficit of RM16 billion in 2012 which was was mainly due to the import of vehicles in the form of completely-built-up (CBU) units.
“I would like to urge industry players to be more aggressive in pursuing exports of components,” Mustapha noted.
The minister said total imports amounted to RM21.8 billion, consisting of RM13.5 billion in vehicles and another RM7.6 billion in auto parts and components.
“Imports are mainly from Thailand, comprising 75% of total CBU imports from Asean. This has increased the competition in the local automotive industry, resulting in the share of national cars to be reduced from 80% in 2002 to 55% in 2012.”
Total exports of Malaysia’s automotive products only amounted to RM5.2 billion in 2012, comprising RM900 million in vehicles and RM4.3 billion in auto parts and components.
The automotive industry contributed 3.2% of GDP in 2012, and is expected to increase to 10% in the year 2020.
On the international stage, global sales reached 78.95 million units in 2012, a growth of 5.3% compared with 2011. This is despite uncertainties in the global economy, such as the eurozone debt crisis and the recovering American economy.
China continues to lead the world market with total vehicle sales of 19.3 million units in 2012. This was 4.46 million units higher than the total sales recorded in the US.

This article first appeared in The Edge Financial Daily, on November 13, 2013.