FINAL REPORT AUTOMOTIVE INDUSTRY SECTOR CONTENTS Executive Summary ....................................................................................................................................... i Chapter 1: Overview of Malaysia Industry ...................................................................................................1 1.1 Overview .......................................................................................................................................1 1.2 Background of the Malaysian Automotive Industry ......................................................................2 1.3 Industrialisation Initiatives ...........................................................................................................3 1.3.1 Industrial Development Ecosystem .......................................................................................3 1.3.2 Initiatives from Early Years of Malaysia ..............................................................................6 1.3.3 Fundamental weaknesses in the Malaysian Industrialisation Ecosystem .............................7 1.3.4 Role of governmental institutions .........................................................................................9 1.3.5 Critical Gaps in the Malaysian Industrial Ecosystem Moving Forward ............................10 1.3.6 National Automotive Policy (NAP) 2014 ............................................................................17 1.4 Economic and Social Contributions by the Local Automotive Industry .....................................19 1.5 A Glance into the Future – Demand for Automobiles .................................................................24 1.6 Future anticipation .....................................................................................................................29 1.6.1 Fundamental technologies ..................................................................................................29 1.6.2 Automotive industry disruptive trends ................................................................................31 Chapter 2: Automotive Foresight - 2050 ....................................................................................................33 2.1 Overview of the Automotive Trend (2020 to 2050) ....................................................................33 2.1.1 In the near future: Year 2020 ..............................................................................................33 2.1.2 The Next Decade: Year 2030 ..............................................................................................35 2.1.3 Two decades onward: Year 2040 ........................................................................................36 2.1.4 Mobility in the Year 2050 ....................................................................................................37 2.1.5 The Journey to the Future ...................................................................................................39 2.1.6 The Disruptive Technologies ..............................................................................................40 2.2 Potential Impacts on Automotive ................................................................................................41 2.2.1 Transportation Infrastructure .............................................................................................41 2.2.2 Potential Geopolitics and Economic Impact .......................................................................42 2.2.3 Culture and Social Implications .........................................................................................44 2.2.4 Automotive Training and Educational Requirement ...........................................................46 2.2.5 Disruptive Technologies and the Focus Areas ....................................................................49 2.3 Market Entrance Timeline – Foresight .......................................................................................52 2.3.1 Global Demand foresight for Energy Efficient Vehicles (EEVs) ........................................53 2.4 Establishing Timeline ..................................................................................................................55 2.4.1 Global Projection of vehicle stock towards 2050 ...............................................................55 2.4.2 Global Projection of vehicle “Total Industry Volume (TIV)” towards 2050 .....................62 a 2.4.3 Timeline ...............................................................................................................................66 Chapter 3: Stakeholders Engagement .........................................................................................................66 3.1 Government, Academia and Industry Engagement Workshops ...................................................66 3.2 Short Term 2016 – 2026..............................................................................................................67 3.3 Medium Term 2027 - 2038 ..........................................................................................................69 3.4 Long Term 2039-2050 .................................................................................................................70 3.5 The Scenario ...............................................................................................................................70 Chapter 4: Governance ...............................................................................................................................74 4.1 Environment ................................................................................................................................74 4.2 Businesses and Trades ................................................................................................................77 4.3 Labour .........................................................................................................................................83 4.5 Standardisation and Certifications .............................................................................................85 4.6 Promotion of FCVs .....................................................................................................................85 4.7 Institute relevant support infrastructure .....................................................................................86 Chapter 5: Cross-referencing Between Sectors ..........................................................................................88 5.1 Transportation Sector .................................................................................................................88 5.2 Energy Sector ..............................................................................................................................88 5.3 Electronic and Electrical Sector .................................................................................................89 5.4 Housing Sector ............................................................................................................................90 5.5 Infrastructure Sector ...................................................................................................................91 5.6 Environment Sector .....................................................................................................................92 5.7 Plastic and Composite Sector .....................................................................................................92 5.8 Tourism Sector ............................................................................................................................93 5.9 Agriculture Sector .......................................................................................................................93 Chapter 6: Talent Development ..................................................................................................................95 6.1 Introduction .................................................................................................................................95 6.2 NAP 2014 Human Capital Initiative ...........................................................................................96 6.3 The Initiatives of Enhancing Human Capital Development .......................................................97 6.4 Malaysian Skill Certificate..........................................................................................................97 6.5 National Occupational Skills Standards (NOSS) ........................................................................99 6.6 R & D & C Workers ..................................................................................................................100 Chapter 7: Research, Development & Commercialization .......................................................................103 7.1 Introduction ...............................................................................................................................103 7.2 R&D and S&T Priority Areas for Local Automotive industry ..................................................104 7.3 Relationships between Science & Technology,Research,Development & Commercialization 107 7.4 Automotive R&D Priority Areas ...............................................................................................109 7.5 R & D & C Funding Mechanism ..............................................................................................110