KUALA LUMPUR: Malaysia is accelerating its move to become Southeast Asia’s centre for smart and sustainable mobility, strengthening its focus on electric vehicles (EVs), artificial intelligence (AI) and advanced manufacturing, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
At the Global Automotive and Technology Expo (GATE) 2025 held at the Kuala Lumpur Convention Centre (KLCC) on Thursday (Nov 13), he highlighted how AI is transforming the automotive landscape, noting that “AI is redefining the way vehicles are designed, manufactured, and driven.” He added that AI is enabling more intelligent, safer and efficient mobility solutions while reshaping business models throughout the supply chain.
Zafrul also emphasised that Malaysia’s semiconductor capabilities, rare earth assets and strong manufacturing ecosystem position the nation to become the region’s smart mobility epicentre.
He explained that the New Industrial Master Plan 2030 (NIMP 2030) is steering Malaysia toward higher-value, sustainable and technology-led sectors, supported by the National Automotive Policy 2020 (NAP 2020), which drives the development of next-generation and energy-efficient vehicles.
The minister said the government is strengthening the country’s digital backbone through the RM2bil Sovereign AI Cloud to reinforce data sovereignty and expand large-scale AI usage across industries like mobility and semiconductor design. He stressed that the nation’s goal is to shift “from a producer of goods to a creator of technology, innovation, and intellectual property.”
Zafrul noted Malaysia’s leading position in Southeast Asia’s vehicle market during the first half of 2025, reflecting strong industry momentum.
He also mentioned that EV tax incentives are being synchronised with efforts to increase local assembly and component localisation, a strategy aimed at deepening industrial participation and boosting Malaysia’s competitiveness in the regional supply chain.
He revealed upcoming plans for an “essential list” and localisation incentives to strengthen local vendors and open doors for export growth.
Zafrul commended domestic carmakers for their achievements, underscoring Malaysia’s rising capabilities and aspirations in EV production. He said these advancements highlight the effectiveness of automotive policies under the Madani government and elevate Malaysia’s position alongside Thailand — once known as the “Detroit of Asia.”
He added that the industry’s expanding ecosystem and empowerment are contributing to job creation, economic advancement and technological progress.
Zafrul said the strong momentum seen at GATE 2025 reflects the resilience and drive of Malaysia’s industrial landscape, emphasising the need to continue strengthening collaboration, accelerating innovation and positioning Malaysia as a leader in sustainable, intelligent and inclusive industrial development.
