Mapping Malaysia's Resource Centres

03 Automotive and Transportation The automotive industry in Malaysia consists of over 20 vehicle producers and over 600 component manufacturers. Malaysia’s automotive industry was the third largest in Southeast Asia, and ranked 25th worldwide, with an annual production output of over half a million vehicles. The automotive industry contributes an estimated 4% (RM40 billion) to Malaysia’s GDP, and employs a workforce of over 700,000 nationwide. Malaysia marked its commitment towards being an automotive-producing nation through the establishment of Proton in 1983. It soon bloomed into a full-fledged car manufacturer, introducing its very first in-house design in the year 2000, the Proton Waja. Meanwhile, Perodua established itself as Malaysia’s second national brand in 1993. Today, the Malaysian automotive industry has grown with over 600 parts and components manufacturers and more than 50,000 after- sales businesses. Taking into consideration the latest trend in the automotive industry within ASEAN, the sustainability in economic growth, infrastructure developments and automotive Original Equipment Manufacturers’ (OEMs’) continuous introduction of models; have collectively provided a huge boost to the automotive industry. The ASEAN automotive industry benefits significantly from their respective governments’ continued promotion of infrastructure development through investments. The automotive industry in Malaysia is expected to continue its growth; in fact, it is expected that its biggest moments are still to come as this industry provides and brings opportunities in both the manufacturing and service sectors. The development of Malaysia’s automotive industry has made the country a production centre for major automotive component manufacturers. Today, there are about 800 automotive component manufacturers, producing a wide range of components, such as body panels, brake parts, engine parts, transmission and steering parts, rubber parts and electrical & electronic parts. Engineering supporting industries have developed in tandem with the development of the manufacturing sector. The key strengths of the automotive industry in Malaysia are buoyed by the rapid development of the following industries: 1. Mould and die; 2. Metal casting; 3. Machining; 4. Metal stamping; 5. Surface treatment/finishing; and, 6. Heat treatment. In addition to this, OEMs are key players in the structure contributing towards producing end- products to the market place.