Friday, April 22, 2016

Official Launching of the 9th International Roundtable Conference on Automotive Recycling 2016 (IRT 2016)


Official Launching of the 9th International Roundtable
Conference on Automotive Recycling 2016 (IRT 2016)

Hatten Hotel, Melaka
22 April 2016 (Friday)

YAB Datuk Seri Ir. Hj. Idris Hj. Haron
Chief Minister of Melaka

YBhg. Dato’ Madani Sahari
CEO of Malaysia Automotive Institute (MAI)

Mr. Gwee Bok Wee
President of Malaysia Automotive Recycling Association (MAARA)

Distinguished Guests

Members of the media

Ladies and Gentlemen

A very good morning and Salam 1Malaysia to all of you.

Allow me to express my sincere appreciation to the organisers for inviting me to officiate the International Roundtable Conference on Automotive Recycling 2016, or IRT 2016.

I was informed that this is the ninth edition of the IRT and that this year, it is jointly organised by the Malaysia Automotive Institute (MAI), an agency under the Ministry of International Trade and Industry (MITI) and the Malaysia Automotive Recyclers Association (MAARA), as well as supported by the Global Automotive Recyclers Alliance, (GARA).

Ladies and Gentlemen,

The total number of vehicles running on the road worldwide is expected to reach 2.5 billion by 2050. Given the evidence on the impact of automobiles on the Earth's climate and environment, it is clear that the industry needs to do more to mitigate its imprint on the planet. Hence, the “recycling” of automotive parts and components will be an important activity to combat the polluting nature of the automotive end-of-life wastes and to transform the automotive ecosystem towards becoming more environmental friendly.

One of the measures under the National Automotive Policy (NAP) 2014 is to transform, regulate and enhance the used parts recyclers industry in terms of safety, quality and green conservation in Malaysia. The NAP 2014 also gives greater emphasis on promoting and encouraging the development of recycled parts production locally. Steps have since been taken to stimulate the effort by promoting standards across related used and new parts, inculcating the “Reduce-Reuse-Recycle (3R)” practices within the local automotive ecosystem, promoting the End-of-life vehicle policy and transforming recycling into a remanufacturing industry.

Ladies and Gentlemen,

In order to support further the strategic initiatives of NAP 2014, “4R2S” standards were formulated to guide the automotive industry towards enhancing the infrastructure to achieve the optimum standard for product and process quality, consumer safety and protection, environment safeguarding, and business sustainability. The creation of the “4R2S” will provide greater flexibility and adaptability for the automotive industry stakeholders to implement, manage and enhance economic sustainability, as well as providing a potentially higher compliance with lower administrative costs.

The 4R standard prescribes ELV management, the parts and components recycling and remanufacturing industries, and the safety and environmental aspects of the automotive post-use ecosystem. The implementation of the standard will benefit the automotive industry and the country as a whole. It is crucial for the automotive industry to ensure that the implementation of reuse, repair, recycle and remanufacture is relevant in the current and future context of the global automotive industry.

The NAP 2014 Remanufacturing roadmap outlines detailed criteria for remanufacturing standards and best practices to be adopted by the domestic automotive players to promote Malaysia as the centre for automotive remanufacturing in ASEAN. The roadmap also provides guidelines to optimise "recyclability" and recoverability levels of used components.

Ladies and Gentlemen,

Malaysia has the potential to build a strong remanufacturing industry with the existing manufacturing base, coupled with the availability of an established and sound automotive recycling industry. Remanufacturing requires support from other activities such as parts collectors, professional recyclers, and cleaners -- among others -- to ensure a consistent and sustainable supply of recycled components. The demand will spearhead the development of more organised recycling activities within the local and global aftermarket ecosystem.

The NAP 2014 has introduced measures such as promoting export activities and utilising locally produced materials. In 2015, total exports of automotive components were valued at RM9.8 billion while the exports of vehicles exceeded revenues of RM1.44 billion.

Recently, the Government established the National Export Council (NEC) to further enhance Malaysia's export capability on automotive spare parts, components to the global tier-1 suppliers and remanufactured parts.

Ladies and Gentlemen,

In order to maintain its growth momentum, the domestic automotive industry should look beyond our national borders and capitalise on the opportunities available under the recently established ASEAN Economic Community, or AEC. With the establishment of AEC, Malaysian companies are well placed to further expand their reach in a regional market of 620 million people.

In addition, the Malaysian automotive industry also stands to gain from the potential offered by market-liberalisation initiatives under the Free Trade Agreements that Malaysia has signed with nations beyond ASEAN. The Trans-Pacific Partnership Agreement, for instance, is set to come into force in two years. The TPPA's membership comprises 12 nations, including Malaysia, with a collective population of about 800 million and which account for 40 percent of world trade. For Malaysian exporters, the TPPA facilitates access to several new markets with which we currently do not have a Free Trade Agreement. These markets include the United States, Mexico, Peru and Chile.

Ladies and Gentlemen,

While the Government can ensure the supporting measures are in place, the continued growth of the automotive sector ultimately lies in the hands of the companies that comprise the industry. MITI is here to help. Our doors are always open. In this context, we always welcome strong partners in the automotive recycling community who are committed to growing their presence in Malaysia and the region.

I hope all the participants will benefit from this IRT 2016. To the international participants, I welcome you to Malaysia especially to the historical city of Malacca and I trust you will take the opportunity to enjoy our famed Malaysian hospitality.

It is now my pleasure to officially launch the 9th International Roundtable Conference on Automotive Recycling 2016.

Thank you.