Zafrul: AI and EVs Drive Malaysia’s Next Industrial Leap

Malaysia is quietly but confidently positioning itself as Southeast Asia’s next hub for smart, sustainable mobility. The shift goes beyond EVs, combining artificial intelligence (AI), advanced manufacturing and Malaysia’s strengths in semiconductors and resources to build a homegrown mobility ecosystem.

At the Global Automotive and Technology Expo 2025 (GATE 2025), Tengku Datuk Seri Zafrul Abdul Aziz underscored how AI is driving the industry’s next leap. He said AI is reshaping how vehicles are designed, built and operated, enabling safer, more efficient mobility while transforming the entire supply chain.

Malaysia’s ambition now is to move beyond assembly and climb higher up the value chain. The New Industrial Master Plan 2030 charts this push toward high-value, tech-driven industries, while the National Automotive Policy continues to guide next-generation mobility and energy-efficient transport.

A key part of this transition is strengthening digital infrastructure. Tengku Zafrul pointed to the RM2bil Sovereign AI Cloud as a catalyst for large-scale AI adoption in mobility and semiconductor design. Malaysia’s long-term goal, he said, is to evolve from a producer of goods to a creator of technology and intellectual property.

The results are beginning to show. Malaysia leads Southeast Asia’s vehicle market for the first half of 2025, reflecting strong industry momentum. At the same time, EV incentives are being recalibrated to boost local assembly and increase component localisation, enhancing Malaysia’s position in regional supply chains.

Tengku Zafrul also revealed that an “essential list” and new localisation incentives are on the way to further support local vendors and create export opportunities. He praised local automakers for advancing their EV capabilities, signalling a maturing ecosystem ready to stand alongside established regional players like Thailand.

He said the progress seen at GATE 2025 reflects an industry determined to grow, innovate and collaborate. Sustaining this momentum, he added, will be crucial for Malaysia to establish itself as a leader in intelligent, sustainable and inclusive industrial growth — both regionally and globally.

Source: The Star