Malaysia's Minister of Investment, Trade and Industry, Tengku Zafrul Abdul Aziz, said recently that Malaysia has achieved remarkable results in the electric vehicle and semiconductor industries since it entered industrialization in the 1970s, becoming an important manufacturing center in Asia.。

For more than 50 years, Malaysia has built a good business environment for local companies and promoted them to pass the upgrading of various capabilities.。Nowadays, local companies have gradually developed into multinational companies, listed companies and suppliers of global value chains.。

Today, Malaysia is ready to become a regional center for the electric vehicle industry, and the existing electronics industry has laid a solid foundation for the country to become an important part of the global electric vehicle supply chain。

The Malaysian government has set up a cabinet-level National Electric Vehicle Strategy Committee, chaired by Zafrul.。Zafrul said that from 2018 to March 2023, the investment in Malaysia's electric vehicle industry has reached 26.2 billion ringgit (about 5.4 billion U.S. dollars), and the number of registered electric vehicles in 2022 has increased to more than 3,400. More than 7,500 vehicles by September 2023。

According to Zafrul, Malaysia's existing electronics industry ecosystem can supply more than 1,400 components for the development of electric vehicles, and the electric vehicle industry "will not only help achieve sustainable development goals, but also help establish an appropriate industry ecology."。

Earlier this month, the Malaysian government announced a plan to introduce tiered tax incentives for investment in key sectors, including electric vehicles, with tax exemptions ranging from 60% to 100% in the 2024 draft budget submitted to Parliament.。

In addition, the Malaysian government also announced that it will impose a new road tax on electric vehicles, which is lower than that of internal combustion engine vehicles, and will relax the rules for the installation of charging stations in order to speed up the promotion.。

For the automotive industry, Malaysia is also undergoing a government-led merger - Sime Darby and UMW Holdings - in an effort to catch up with the rest of the world's transition to electric vehicles.。

According to Zafrul, Malaysia's existing industrial ecosystem is also one of the key factors attracting investment from major global chipmakers such as Infineon Technologies of Germany and Intel of the United States.。Both companies are understood to have announced major investments in the country.。

News that the country's chip industry is moving up the value chain, from testing and assembly to wafer fabrication and chip design, will undoubtedly "strengthen Malaysia's position as a major player in the sector."。It seems that Malaysia's goal of becoming a hub for electric vehicles in Southeast Asia can be expected in the future。