Datuk Seri Johari Abdul Ghani has said that local content used in locally-assembled (CKD) vehicles must generate value throughout the Malaysian supply chain.
“Looking only at Tier 1 suppliers no longer provides an accurate picture. We must trace value creation throughout the supply chain – whether they are Tier 1, Tier 2 or Tier 3 – to ensure that incentives reward genuine Malaysian capability rather than imported content disguised as localisation,” the head of the ministry of investment, trade and industry (MITI) said in his speech at today’s launch of the MCE Auto Hub in Serendah, Selangor.
Johari added that vehicle manufacturers are encouraged to strive to increase the amount of local content in their products. “If you can bring 10%, tell us when you can bring 20%. How do you bring the local content to 20%? If you already have 20%, how do you bring it to 30%? If you already have 30%, how do you bring it to 40%?” he said.
“When you reach that level, I – as minister – will go around the world to promote your product. That’s what I want to do because this can be considered a Malaysian-made product even though the brand is owned by all of you. This is what I want to do to ensure that we consistently build our capabilities locally,” he added.
Raising local content in vehicles assembled here is nothing new and has always been the focus of the government. The issue of local content was also brought up by MITI in its statement on BYD’s CKD factory.
Johari’s statement is aimed at vehicles that have a vast majority of their components imported from overseas but put together in Malaysia, which does not benefit local suppliers as they may be relegated to supplying basic components like batteries or minor trim pieces. This also limits potential knowledge transfer as they are not involved in supplying more advanced components, which jeopardises the Malaysian supplier ecosystem.
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Nonsense la. All your crony type c suppliers just rebadge parts from china
haha…well said!
Local creation?! LOL…. i can guarantee this mr j house, maybe u search through out u cant find a single piece of local items! and then he talk bout local with the poor malaysian!
BS lah, can local supplier produce the same parts in competitive costs?
He means to tell everyone that when a firm puts in millions if not billions into R&D they then have to share that so easily with a foreign nation like Malaysia just so locals can try manufacture them? No company is going to share their proprietary know-how to enable any sort of local manufacturing, he needs to get his mouth of out of his own rear hole. CKD is the best you can hope for with foreign brands, your local P1/P2 need external foreign agencies to design cars and mfg parts so this talk is just gaslighting. This is why you cant have morons for ministery posts, you need properly educated people with real knowledge of how technology works. There are lot of graduates out there with degrees from unis worth no more than paper weights. This clown is one such bodoh.
From his statement it shows he knows nothing and hopeless for his Kementerian to do well.
You must let their factory to be build here in Malaysia first then local content to come next, not the other way around. Jangan LCLY sangat, no one owes Malaysia that they must manufacture in Malaysia. Tun M time already made the mistake, NOW he wants to repeat the mistake. Low IQ, no?
Global car brands wanted to tap on China cheap labour including Tesla and Chinese entrepreneurs compete until they become leader because so many car brands in China (both local and global brands)
Our menteri otak sikit sel reverse the whole concept. Tolong letak jawatan or rakyat must vote you out or the whole parti politik you are with.