Kuala Lampur:Proton Holdings Bhd is advocating for a long-term, technology-inclusive automotive policy in Budget 2027 to aid the industry's shift towards electrified vehicles (xEVs).
According to BERNAMA News Agency, Deputy Chief Executive Officer Datuk Ir Abdul Rashid Musa emphasized the need for a policy that incentivizes upstream activities in the auto sector, strengthens the vendor ecosystem, attracts technologies and suppliers to Malaysia, and promotes local sourcing.
The national carmaker also proposes a comprehensive national vehicle renewal and recycling framework to address the issue of ageing vehicles on Malaysian roads. Abdul Rashid highlighted that Malaysia's transition to xEVs will impact all areas of the sector, necessitating a managed approach that balances industry needs while gradually preparing the nation for such vehicles.
He further mentioned that government support is essential to boost growth in upstream activities and reinforce the vendor ecosystem to achieve the national goal of increased localization. By bringing more technologies and suppliers to Malaysia and encouraging local sourcing, the industry could reduce development and parts costs, making the transition to electrification more affordable for Malaysians.
Addressing vehicle renewal, Abdul Rashid noted the necessity of a structured, long-term framework for dealing with ageing and unsafe vehicles, referencing the strong response to the matching grant incentive for replacing old vehicles introduced under Budget 2026. The RM10 million allocation for this incentive was exhausted within three months, facilitating the removal of older vehicles from national roads. Expanding this programme could lower the government's fuel subsidy bill and provide safer, more efficient vehicles for Malaysians.
He assured that the aim is not to force vehicle replacement or impose financial burdens on households but to offer practical and affordable options for retiring unsafe, inefficient, or uneconomical vehicles.
Regarding talent and capabilities, Abdul Rashid expressed Proton's hope that Budget 2027 would accelerate the development of local technology, talent, and suppliers. He advocated for stronger national programs to transition Malaysia from assembling vehicles to designing, engineering, and developing automotive technologies. Support should focus on shared capabilities benefiting the industry, including research, software development, AI, battery technology, advanced electronics, testing facilities, and vehicle homologation.
He also called for enhanced collaboration between carmakers, local vendors, universities, and technical institutions to improve competency levels and create a skilled workforce.