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Malaysia’s Automotive Industry Must Move Up The Value Chain To Drive Future Mobility

Kuala lumpur: Malaysia's local automotive industry must continue moving up the value chain, not merely as assemblers or distributors, but as developers of technology, services and solutions for the regional market as the mobility landscape continues to evolve. Deputy Transport Minister Datuk Hasbi Habibollah emphasized the Ministry of Transport's (MOT) vision, which extends beyond vehicles, focusing on developing an integrated, efficient, safe, and environmentally sustainable transportation system.

According to BERNAMA News Agency, Hasbi highlighted the importance of safety in the future of mobility, noting that new mobility solutions must be cleaner, more connected, and contribute to reducing crashes, protecting vulnerable road users, and encouraging safer behavior on roads. He pointed out that features such as advanced driver assistance systems, vehicle connectivity, data-driven enforcement, and safer vehicle design should become mainstream in mobility discussions. These remarks were made at the opening ceremony of the Kuala Lumpur International Mobility Show 2026 (KLIMS 2026).

Hasbi stated that KLIMS 2026 has evolved into a platform that unites key industry players, innovators, policymakers, and consumers to showcase progress-driving ideas. He stressed that achieving the future of mobility requires collaboration among government agencies, industry players, technology providers, academia, and consumers. Hasbi praised KLIMS as more than an exhibition, noting that, together with industry players and stakeholders, they can promote bold investments, embrace new technologies, and accelerate Malaysia's transition to cleaner, safer, and smarter mobility solutions.

The Deputy Minister also discussed MOT's collaboration with industry players to encourage electric vehicle (EV) adoption through incentives, duty exemptions, and the development of a nationwide charging infrastructure network. He mentioned efforts to green the logistics sector by promoting greener fleets and smarter supply chains to reduce emissions from freight transportation. Hasbi expressed confidence that Malaysia is well-positioned to become a regional hub for next-generation mobility, supported by a strong automotive ecosystem, skilled talent, strategic ASEAN connectivity, and a clear policy direction.

Meanwhile, Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain reiterated the association's commitment to supporting the automotive industry and its members in navigating technological changes and evolving policy developments. He emphasized the importance of strengthening industry readiness, encouraging innovation, deepening localization efforts, developing local automotive capabilities, and enhancing Malaysia's automotive ecosystem's long-term competitiveness.

Mohd Shamsor described KLIMS 2026 as reflecting the automotive industry's transformation from traditional transportation to a broader ecosystem of intelligent mobility solutions. He highlighted KLIMS as a relevant platform for industry leaders, policymakers, innovators, and consumers to explore technologies and ideas defining the next generation of mobility.

KLIMS 2026, organized by the MAA, managed by Qube Integrated Malaysia Sdn Bhd, and endorsed by the Malaysia External Trade Development Corporation (MATRADE), with strategic support from the Malaysia Automotive, Robotics and IoT Institute (MARii) and the Malaysian Investment Development Authority (MIDA), is scheduled to be held from June 12 to 21, 2026.

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