Malaysia Needs More Original Technology, Innovation, Not Just More Products -- Tengku Zafrul

KUALA LUMPUR, July 18 (Bernama) -- Malaysia needs more technology and innovation originating from within its borders, rather than just more products on the road, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said the government’s focus on promoting deep localisation and high-technology transfer is to create better employment, elevate technical capabilities, and enable Malaysian small and medium enterprises to become global suppliers.

“What we want is the ripple effect to spur local innovation, nurture engineers and technicians, support training institutions, and accelerate broader economic growth.

“This is how true partnerships should work: where the benefits are not only mutual but transformational for the host country’s domestic economy,” he said during the Official Launch of the Jaecoo J8 Premium Off-road First Class today.

Tengku Zafrul said that the launch is not just a celebration of a new premium off-road vehicle, but also a milestone that symbolises the deepening partnership between Malaysia and the Chinese automotive brand Chery, as well as the continued dynamism of the country’s automotive sector.

He noted that as consumers become more discerning and demand greater quality and innovation, milestones such as today’s launch send a powerful message that Malaysia is fast becoming a strategic hub for global automotive brands seeking to innovate, grow, and compete.

“We seek Chery’s efforts to deepen its local footprint through increased local content, vendor development, or skills transfer.

“This is a critical step in transforming Malaysia into a high-value manufacturing and research and development (R&D) hub for next-generation mobility,” he said.

To ensure long-term sustainability and scalability, Tengku Zafrul said Malaysia strongly encourages automotive players, particularly original equipment manufacturers, to position the country as a strategic regional hub, with a strong emphasis on export-oriented production.

In this regard, he said, Chery has demonstrated commendable progress in expanding its export footprint.

“Consolidating production for both domestic consumption and export markets not only enhances economies of scale but also strengthens the competitiveness of local component suppliers.

“This approach further supports the formation of new industrial clusters focusing on advanced automotive technologies, reinforcing Malaysia’s role in the regional value chain,” he said.

With a local ecosystem already supporting over 700,000 workers and contributing more than 4.0 per cent of national gross domestic product (GDP), he said the automotive industry remains a key pillar of Malaysia’s economy.

“As outlined in the National Automotive Policy 2020, our aim is for the industry to contribute RM104.2 billion to Malaysia’s GDP by 2030.

“To get there, we must move up the value chain, invest in R&D, and build our capabilities in software, electronics, and sustainable materials, not just in assembly or trading,” he said. 

-- BERNAMA