Kuala lumpur: Deputy Minister of Investment, Trade and Industry, Sim Tze Tzin, has called on the local automotive components sector, especially manufacturers of critical parts, to explore opportunities in humanoid robotics. He emphasized the potential of the Malaysia Automotive, Robotics and IoT Institute (MARii) to explore this emerging industry, given its established connections with the automotive sector.
According to BERNAMA News Agency, the government is set to reward companies that increase local content and engage in local research and development (R and D). This is part of the upcoming revised New Customised Incentive Mechanism (NCM). Sim highlighted that the revised NCM is designed to bolster the automotive ecosystem by promoting advancements in electric vehicles (EVs) and integrating Malaysia into the EV supply chain. The revised NCM aims to simplify processes and encourage localization, offering tax incentives, including reduced excise duties, for companies investing in talent development and R and D.
Currently, automotive industry policies mandate a minimum local content level of 30 per cent. Last month, Minister of Investment, Trade and Industry Datuk Seri Johari Abdul Ghani announced plans to revamp the NCM, targeting implementation next year after consultations with ministries, agencies, and industry stakeholders. The goal is to encourage local production of non-critical components, thus strengthening the domestic supply chain and creating opportunities for local vendors.
Sim also mentioned that the Global Automotive and Technology Expo (GATE 2026), which has returned for its second edition, aims to generate RM500 million in sales with 10,000 visitors. GATE 2026 is seen as a strategic opportunity for Malaysia to enhance its components and critical parts sector while building connections between global technology leaders, regional investors, and local suppliers.
The three-day event, from August 26-28, organized by MARii and Derrisen Sdn Bhd, brings together automotive manufacturers, technology specialists, investors, innovators, and solution providers from Malaysia, ASEAN, and international markets. These stakeholders are exploring investments, exchanging expertise, and establishing strategic partnerships.
The opening ceremony today also featured the signing of memoranda of understanding between international and Malaysian companies, showcasing GATE's role in linking global expertise and technologies with Malaysian industrial capabilities. This initiative aims to create opportunities for technology transfer, localization, supply-chain development, investment, and access to new markets.