On 21 February 2020, the long awaited National Automotive Policy 2020 ("NAP 2020") was launched. The NAP 2020 is expected to contribute MYR 104.2 billion to the Malaysian economy over the next decade.

The NAP 2020, which replaces the National Automotive Policy 2014 ("NAP 2014"), was formulated to elevate Malaysia’s automotive industry to the next phase of industrial competitiveness, in line with the changing mobility landscape in the global market. Under NAP 2020, three key technological elements are introduced, namely: next generation vehicle1 ("NxGV"), mobility as a service2 ("MaaS") and Industrial Revolution 4.0 ("IR4.0").

The NAP 2020 is an enhancement of NAP 2014, with the ultimate objective of making Malaysia a regional leader in manufacturing, engineering and technology as well as to ensure sustainable development of the local automotive industry. NAP 2020 maintains and enhances the NAP 2014 framework through three (3) directional thrusts (i.e., technology and engineering, investment and market expansion) and three (3) strategies (i.e., value chain development, human capital development as well as safety, environment and consumerism).

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