KUALA LUMPUR: Malaysia is shifting gears to become South-East Asia’s hub for smart and sustainable mobility, says Tengku Datuk Seri Zafrul Abdul Aziz.
The Investment, Trade and Industry Minister said the approach would see a renewed focus on electric vehicles (EVs), artificial intelligence (AI) and advanced manufacturing.
“AI is redefining the way vehicles are designed, manufactured and driven,” he said at the Global Automotive and Technology Expo (GATE) 2025 at the Kuala Lumpur Convention Centre yesterday.
“It is enabling the creation of smarter, safer and more efficient mobility solutions while transforming business models across the supply chain.”
Tengku Zafrul said 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, the government is charting Malaysia’s transition toward high-value, sustainable and technology-driven industries,” he said, adding that the National Automotive Policy 2020 complements the effort by promoting next-generation vehicles and energy-efficient transport solutions.
He also said the government is bolstering digital infrastructure through the RM2bil 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,” Tengku Zafrul said.
He noted that Malaysia now leads South-East Asia’s vehicle market as of the first half this year, a testament to the industry’s strong growth momentum.
“The government is also aligning tax incentives for EVs 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 added.
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 EV 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.
The minister said 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 our country as a leader in sustainable, intelligent and inclusive industrial growth,” he said.
