Malaysia Offers Opportunity For Auto Manufacturers Producing Hybrid Vehicles

KUALA LUMPUR, June 26 (Bernama) -Malaysia offers the opportunity for leading automotive companies particularly those producing hybrid vehicles to locate their operations in the country.The companies would be able to cater for the domestic and regional markets, International Trade and Industry Minister, Tan Sri Muhyddin Yassin said Thursday.He said high fuel cost has created demand for such vehicles in the region.The minister's speech was read by the ministry's deputy minister Datuk Jacob Dungau Sagan at the Frost & Sullivan Asean Automotive Awards 2008, here Thursday."Malaysia in fact is well placed to become the hub for hybrid vehicles in the region. I hope automotive assemblers will take advantage of this opportunity," he said.Given that the automotive industry is evolving at such a dynamic pace, he said Malaysia is also paying attention to capacity building and is continuously developing the capabilities of small and medium scale enterprises (SMEs) producing automotive parts and components to ensure these companies remain competitive.Among the programmes undertaken have been the familiarising of SMEs with Lean Production System relating to quality control and improvement, reducing waste, inventory management, control improvements and reduction of rejection rate and in producing upgrading processes.Others have been upgrading the skills of those involved in the automotive industry and enhancing SME capabilities in mould and die designing as well as manufacturing.Under the Ninth Malaysia Plan, the ministry through SMIDEC has provided assistance to SMEs in the automotive sector under various Matching Grant Schemes.As at May 30 this year, SMIDEC approved a total of 612 applications amounting to RM18.35 million, he said.Going forward, he said spiraling energy prices will remain one of the main challenges of the automotive industry.Higher fuel costs also means that consumers will look to fuel efficient vehicles and perhaps vehicles using alternative energy.To meet these demands, continued investment in research and development will be necessary, he added.