Prior to the 1960s, automobiles were imported into Malaysia as completely built-up units (CBU). Local assembly of completely knocked-down (CKD) kits started in the 1960s. While some components and accessories were sourced domestically, the automotive assembly industry was largely dependent on imports.

The launching of Malaysia's first national car project, Perusahaan Otomobil Nasional or PROTON in 1983, catalysed the development of the ancillary and supporting industries by creating opportunities for growth in the manufacturing of component parts and accessories. PROTON's strategy of producing quality cars at competitive prices is to progressively increase their local content.

Malaysia built upon the success of PROTON by the launching of a second national car project, Perusahaan Otomobil Kedua or PERODUA, in 1993, which was followed by the national motorcycle project, Motosikal Dan Enjin Nasiinal Sdn bhd or MODENAS in 1996. The following year, Malaysia Truck and Bus Sdn Bhd was set up to produce heavy vehicles.

SERVING DOMESTIC AND FOREIGN MARKETS

Most automotive cpmponent parts and accessories companies in Malaysia started as original equipment manufacturers (OEM) and suppliers, before venturing into the replacement market and going on to market their products overseas.

In 2000, Malaysia exported RM1,042.1 million (US$274.2 million) worth of automotive parts and accessories, up 113 per cent from 1995. The products exported have also grown in diversity, and now include steering wheels, vehicle wheels, bumpers, gearboxes, brakes, radiators, suspension shock-absorbers and clutches. Along with this, the local content of national cars has increased up to 80 per cent while the percentage of local content in domestically assembled foreign cars has also increased with some achieving 65 per cent.

QUALITY CERTIFICATION

Various programmes are being implemented to further diversify and upgrade the quality of products being exported. Strong emphasis is given to research and development as well as design-engineering activities. To enhance the international acceptance of Malaysian-made component parts and accessories, companies have been encouraged to seek the QS 9000 certification.

The measures and efforts continually undertaken by Malaysian companies to improve the quality, reduce costs and ensure timely delivery of their products have further enhanced their competitiveness and the ability to further integrate into the automotive industry supply chain. Malaysian companies are also meeting the needs in the replacement market for reliable and competitive component parts and accessories.