Malaysia is hoping to become a production hub for electric vehicles in Southeast Asia, seeing huge potential thanks to its 40 years of car-making experience since 1983 and its strong semiconductor industry. Or at least, so says deputy minister of international trade and industry (MITI) Liew Chin Tong, according to The Edge.

The business publication quoted the official as saying that the country aims to foster greater integration between its automotive and semiconductor sectors, with the goal of becoming a leading hub for automotive-grade chips. “Malaysia is a very interesting place; we are the sixth largest exporter of semiconductor products in the world. While we may not have a homegrown brand, we play a very big role especially in the backend,” he said at the launch of the E-Mobility Asia exhibition yesterday.

Liew said that during his visit to Detroit last year, he was told by US Secretary of Commerce Gina M Raimondo that automotive factories in the area were forced to shut down due to Malaysia going into its Movement Control Order (MCO) lockdown during the COVID-19 pandemic.

“This is because the chips they relied on came from Malaysia and some semiconductor companies in Malaysia contributed substantially in global automotive chips. Therefore, when talk about automotive industry, especially the electrification of mobility, it is important that we do not work in silos or focus solely on individual verticals.

“I would like to see this industry cross in the horizontal manner, [fostering the] creation of new products, integrated circuit designs, and automotive chips that are proudly Malaysian. This will enable us to not only export automotive parts but also automotive chips,” he said.

Liew added that Malaysia also intends to reduce the country’s petroleum consumption by switching over to electrified mobility. “If you ask around, most people would think that this country is a net exporter of petroleum, which is not true. We are…the 21st largest net importer of petroleum.

“I encourage you to think boldly and offer new ideas to help us explore different approaches, so that electrification becomes not just a business opportunity for manufacturers, but a national agenda aimed at reducing overall petrol consumption,” he said.

Liew also mentioned that Malaysia is poised to achieve the government’s target for EVs to make up 20% of the total industry volume (TIV) by 2030, 50% by 2040 and 80% by 2050. “While it looks ambitious especially given that we are starting from a low base, the International Energy Agency’s annual Global EV Outlook highlights some key trends — EVs made up just 2% of the TIV globally in 2018.

“By 2022, this had risen to 14% of TIV globally, and by 2023, it reached 18%. Therefore, achieving 20% of TIV by 2030 is not a far-fetched target, but it will require a lot of concerted effort. It will require us to be bold and think outside the box,” he said.

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