KUALA LUMPUR: Malaysia is shifting gears to become Southeast Asia’s hub for smart and sustainable mobility, with a renewed focus on electric vehicles (EVs), artificial intelligence (AI), and advanced manufacturing, says Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
“AI is redefining the way vehicles are designed, manufactured, and driven,” said Tengku Zafrul at the Global Automotive and Technology Expo (GATE) 2025 at Kuala Lumpur Convention Centre (KLCC) on Thursday (Nov 13).
“It is enabling the creation of smarter, safer, and more efficient mobility solutions while transforming business models across the supply chain,” he added.
He added that Malaysia’s strength in semiconductors, rare earth resources, and manufacturing makes it well-positioned to become the epicentre of smart mobility in the region.
“Under the New Industrial Master Plan 2030 (NIMP 2030), the government is charting Malaysia’s transition toward high-value, sustainable, and technology-driven industries,” he said, adding that the National Automotive Policy 2020 (NAP 2020) complements this effort by promoting next-generation vehicles and energy-efficient transport solutions.
He said the government was also bolstering digital infrastructure through the RM2bil Sovereign AI Cloud, to strengthen data sovereignty and support large-scale AI adoption in industries such as mobility and semiconductor design.
“Our mission is to evolve Malaysia from a producer of goods to a creator of technology, innovation, and intellectual property,” he said.
He noted that Malaysia now leads Southeast Asia’s vehicle market as of the first half of 2025, a testament to the industry’s strong growth momentum.
“The government is also aligning tax incentives for electric vehicles with efforts to boost local assembly and parts localisation.
“This strategic shift aims to strengthen industrial participation and enhance Malaysia’s competitiveness within the regional supply chain,” he said.
Tengku Zafrul also announced plans to introduce an “essential list” and localisation incentives to support domestic vendors and create export opportunities.
He praised local automakers for their progress, showcasing Malaysia’s growing capability and ambition in electric vehicle manufacturing.
“This achievement demonstrates the strength and credibility of Malaysia’s automotive policies under the Madani government, positioning us competitively alongside Thailand, once known as the ‘Detroit of Asia’,” he said.
He added that these developments show how ecosystem growth and industry empowerment can directly translate into employment, economic growth and technological capability.
“The momentum we see at GATE 2025 demonstrates the strength and determination of Malaysia’s industrial ecosystem.
“We must continue to build on this momentum to expand collaboration, accelerate innovation, and position Malaysia as a leader in sustainable, intelligent, and inclusive industrial growth,” he said.
