KUALA LUMPUR: Malaysia has gone through various stages of development to become one of the most competitive markets in the automotive industry, said Prime Minister Tun Dr Mahathir Mohamad.
"Things are developing stage by stage; we can't suddenly become the best (car) producer without going through the phase of starting early with, maybe, rather 'primitive' technology.
"But the fact remains that we have (been in) the automotive industry for the last 35 years.
"And for a country which had no knowledge at all about building cars, today, we can design, build prototypes and do all things needed in order to produce cars. Not just ordinary cars, but modern, high-tech cars," he told reporters after launching the National Automotive Policy (NAP2020).
In his speech earlier, Dr Mahathir said many were sceptical about the country's aspiration when it first embarked on the industry.
"But today, Malaysia has become one of the most competitive markets for the automotive industry, and it has gone through many phases of development with many success stories to be told.
"The automotive industry goes beyond mere car manufacturing.
"Technically speaking, although the manufacturing of a car involves thousands of small parts and components, it also spurs the development of new technologies that will in turn complement other industrial sectors," he said.
Dr Mahathir added that the technologies embedded in cars provide immense opportunities for related industrial sectors to break new ground.
He said linkages to both upstream sectors such as steel, plastics and rubber and the downstream value chain demonstrate that the automotive industry is one of the most important and strategic contributors to the overall growth of the manufacturing sector.
"The Malaysian automotive industry and related sectors employ more than 600,000 people and contribute 4.0 per cent to Malaysia’s gross domestic product.
"There are more than 20 manufacturing and assembly plants in the country producing passenger and commercial vehicles, as well as motorcycles and scooters.
"Moving downstream, there are about 53,000 aftermarket establishments and more than 600 automotive parts and component manufacturers that range from body panels, trim parts, powertrain parts, rubber parts and electrical and electronic parts.
"These numbers are not only impressive, but also testament to how a developing country such as Malaysia could be a strong player in a concentrated industry such as this in the last three decades," he added.
Here is the pdf version of the policy.