Wednesday, March 21, 2018


21 MAC 2018

Assalamualaikum dan Salam 1Malaysia

1. I am privileged to be here at the National Emission Test Centre (NETC), the result of a strategic partnership between the Government and industry through technology transfer from Daihatsu Motor Corporation (DMC) of Japan to PERODUA and to be operated by MAI. Also, in conjunction with the NETC launch today, MITI and MAI would also be launching the Energy Efficient Vehicle (EEV) Label, aimed to provide some guidance consumers in purchasing EEVs.

2. As all of you are aware, the Prime Minister, YAB Dato' Sri Mohd Najib Bin Tun Haji Abdul Razak in 2009 has pledged Malaysia’s commitment to reducing carbon intensity in its greenhouse gases (GHG) emission up to 45% by the year 2030. In ensuring this target is attainable, an effective implementation strategy is needed, in collaboration with relevant parties and stakeholders that not only fulfil commercial and employment needs, but also environmental preservation. 

Ladies and Gentlemen,

3. The transportation sector is the second largest contributor of carbon emission globally after electricity and heat generation. To meet the carbon reduction targets of 45% by 2030, the transport sector is one of the key focus areas Malaysia must address to achieve its pledge.

4. The NETC provides a strategic advantage to the local industry as the costs associated with testing will now be significantly lower and the location allows for faster testing times. Besides that, more Malaysians can access and experience the testing facilities as they are now located within our borders under a Government agency.

5. The NETC will also act as an element to attract foreign investors to expand their businesses in Malaysia by providing the necessary facilitation to ease the operation through vehicle certification process. It also would allow opportunities for vehicle manufacturers in the ASEAN region to access an emissions test centre closer to their home base.

Ladies and Gentlemen

6. With the establishment of this facility, it can create spin-offs that would enable the Government to enjoy indirect and direct benefit from the trade activities from increased economics of scale of the local industry, and ensuring consumers have more competitive choices in selecting the right EEV.

7. When the Government introduced the National Automotive Policy 2014, we were cognisant of the rapid movement of technology development in the global auto industry. Hence, the key objectives of National Automotive Policy 2014 (NAP 2014) was to establish a more competitive and resilient domestic automotive industry and to transform Malaysia into the regional hub for EEV.

8. As such, the establishment of NETC is timely and consistent with Government’s intention as specified in NAP 2014. NETC is able to facilitate automotive manufacturers in Malaysia to conduct emissions testing locally as well as to further promote EEV usage in Malaysia. This is a stepping stone to make Malaysia a regional hub for EEVs in the near future.

9. The penetration of EEVs in our market has been very reassuring. In 2016, 42.8% of the Total Industry Volume was EEVs and this has achieved 52% in 2017. EEV penetration in our market has been very encouraging and is on the right track to reach target of 80% EEV penetration in 2022.

10. Moving forward, MITI is currently engaging relevant stakeholders to revisit the National Automotive Policy in order to align with the current and future technology scenario. The NAP 2018 will further enhance Malaysia‘s automotive industry in the era of digital industrial transformation.

Ladies and Gentlemen,

11. I also would like to urge companies to embrace new technologies such as Industry 4.0 for the manufacturing sector to enhance our competitiveness. It is important for companies to be flexible to customise their products to meet customer needs. This approach involves developing every part of the value chain in the targeted sector, from manufacturing of raw materials to the manufacturing of its products, right up to developing sustainable solutions and reliable supply for the customers.

12. Industry players are urged to invest in automation and R&D to avoid the consequences of shrinking margins and labor issues. The future of Industry 4.0 is indeed exciting and promising as it enables us to remains sustainable and competitive in the long run.

Ladies and Gentlemen

13. This strategic partnership between the Government and the industry is yet another enabler towards local technology development through the clear direction and roadmaps provided by the Government through the NAP.

14. This initiative will further enhance linkages between the Government, industry and academia through a test centre that is open to the public in and out of Malaysia.

15. As this centre as a result of a strategic partnership with a supportive foreign company, the local industry can expect more technology transfer to occur, especially in aspects of low carbon mobility as this will enable the industry to move towards the Government's efforts in lowering carbon emission.

Ladies and Gentlemen

16. In ensuring the role of NETC as a one-stop centre for emission tests, the next phase of NETC will expand their testing in the upcoming years to cover commercial vehicles as well as motorcycles. 

17. On that note, I would like to wish NETC every success in the years to come. I also would like to extend my heartfelt congratulations, to all parties on the milestones you have achieved today.

Thank you.

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