Kuala lumpur: Malaysia needs more technology and innovation originating from within its borders, rather than just more products on the road, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. He emphasized the importance of promoting deep localisation and high-technology transfer to create better employment opportunities, enhance technical capabilities, and enable Malaysian small and medium enterprises to become global suppliers.
According to BERNAMA News Agency, Tengku Zafrul emphasized that the goal is to spur local innovation, nurture engineers and technicians, support training institutions, and accelerate broader economic growth. He stated that true partnerships should result in mutual and transformational benefits for the host country’s domestic economy. His remarks were made during the Official Launch of the Jaecoo J8 Premium Off-road First Class, which marks a milestone in the partnership between Malaysia and the Chinese automotive brand Chery, as well as a testament to the dynamism of Malaysia’s automotive sector.
Tengku Zafrul highlighted that as consumers demand higher quality and innovation, events like today’s launch signify Malaysia’s emergence as a strategic hub for global automotive brands aiming to innovate and compete. He encouraged Chery to deepen its local footprint through increased local content, vendor development, and skills transfer, which are critical steps in transforming Malaysia into a high-value manufacturing and research and development hub for next-generation mobility.
To ensure long-term sustainability and scalability, Malaysia is urging automotive players, particularly original equipment manufacturers, to position the country as a strategic regional hub with a strong emphasis on export-oriented production. Tengku Zafrul commended Chery’s progress in expanding its export footprint, which strengthens the competitiveness of local component suppliers and supports the formation of new industrial clusters focusing on advanced automotive technologies.
With a local ecosystem supporting over 700,000 workers and contributing more than 4.0 per cent of national gross domestic product (GDP), the automotive industry remains a key pillar of Malaysia’s economy. As outlined in the National Automotive Policy 2020, the aim is for the industry to contribute RM104.2 billion to Malaysia’s GDP by 2030. To achieve this, Malaysia must move up the value chain, invest in research and development, and build capabilities in software, electronics, and sustainable materials, beyond just assembly or trading.