From shophouse to global hub: Malaysia's automotive journey
Asia's very first automotive assembly activities date back almost one hundred years.
The pioneers in local assembly used to be Ford, when in 1926 was incorporated in Singapore as Ford Motor Company of Malaya Ltd. Operating from a small shophouse garage, it began with wheel-fitting and touching up early Model-T kits sourced from Ford England and Canada. A far cry from the state-of-the-art assembly plants that can push out thousands of units a month today.
The first fully-fledged automobile assembly plant was set up in Singapore by Ford, with production facilities of completely knocked-down (CKD) vehicles. During the Japanese occupation, the plant was used to produce military trucks.
In the post-war years, as newly independent nations began charting their economic futures, industrialisation – and with it, automotive manufacturing – became a natural focus.
The Asean blueprint for development post-independence has been largely industrialisation-focused and began to look at reducing their reliance on imported vehicles. Over time, the most critical starting point is to upskill the talent, implement government policies and incentives, and build local infrastructure to support it.
The automotive supply chain has grown tremendously, a spark that has ignited investments, skills development, and technology transfers – powering hundreds of thousands of livelihoods. As the supply chain became more embedded, global brands began to eye countries like Thailand, Indonesia, and Malaysia as suitable hubs for regional expansion.
Initially manufacturing for the domestic market, post-war economies were flourishing, and mobility was an essential part of this growth.
The following decades saw the automotive industry evolve organically, gradually increasing the local content component in alignment with national policies, attracting interest and investment from European and Japanese brands, who saw Asean as an attractive hub for regional expansion.
The era of complex
automotive supply chains
Digitalisation, trading blocs, and supply chain-related technologies gave the world a massive boost when it came to regional integration. Cars were now being built with content from multiple countries, with each component being optimally sourced at the best quality and price from vendors across the region. This allowed for increasingly resilient supply structures, with better flexibility and scalability.
Toyota, with its Toyota Production System, pioneered manufacturing and logistical processes that are emulated globally, optimising complex supply chains to clockwork precision.
Today, your car could be designed in Japan, made in Malaysia, with tyres from Thailand, brakes made in Indonesia and seats from Vietnam – a truly Asian testament to integration – and Malaysia played the role of quiet architect. Working fantastically together, with each component coming together at the right time and in the right specification on the final assembly line.
Domestic or export?
Why not both?
Export-oriented hubs that also serve the local economy are a great move forward. Jobs created, skills enhanced, technology infusion, and the local market gains access to more advanced cars – the economic benefits multiply.
Whilst the world's leading car brands do not originate from Asean, the region remains a strong manufacturing base and a key source of growth, ensuring their significant and enduring presence here.
The rise of xEV and China
In more recent times, the rapid growth of electrification has shifted the technological focus, attracting big leaps in investment, technology, and upskilling. One cannot talk about electrification without mentioning China.
China is integral to electrification. Supported by a thriving local economy, the country has been able to grow the local infrastructure exponentially in developing batteries, their component technologies, and raw material extraction and refinement, and is now the linchpin of critical technologies in the pursuit of a green future.
It is a space that is rapidly evolving, too, as governments increasingly view energy transition as a matter of national security and critical industries. New iterations of batteries and platforms continue to leapfrog previously cutting-edge technologies.
Can Asean keep up with this pace of evolution?
While no one region can match China's scale overnight, Asean's opportunity lies not in direct competition – but in complementing the ecosystem. In a world of shifting alliances, agility and trust matter more than sheer volume. Supply chain interdependencies and geopolitical conditions will make alliances and partnerships a critical, if not essential, pathway to joint prosperity in the region.
Asean member countries make up 670 million people, making it the fifth most populous region. Collectively, they produce around 4.5 million cars annually, making it the fifth largest sub-regional market. Global brands recognise the potential, catapulting Asean as a hub for manufacturing, exports, and component supply.
Asean's generally trade-friendly policies also make it favourable for manufacturers looking to access markets they otherwise cannot. This cushions the impact of geopolitical tensions, like the tariff wars. Malaysia, Indonesia, and Thailand are well-positioned to capitalise.
In the process of building these support networks for car brands, we continue to grow and flourish. Our talent pool, technology and training skills, research and development, and production capabilities continue to expand. From a humble shophouse to regional relevance, Malaysia's journey reflects the power of steady progress. And our future – built on talent, trust, and tenacity – is going strong.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Borneo Post
2 hours ago
- Borneo Post
Power-sharing of a different kind
For Malaysia, the cross-border power-sharing is a meaningful contribution to the APG scheme itself, which aims to build an electricity grid link with almost all the member countries of Asean. — Bernama photo SHOULD the Republic of the Philippines need extra electricity for its industries and private homes and cannot get it elsewhere, it can turn to Sarawak. Within minutes, through the renewable energy grid, the Asean Power Grid (APG), electricity could be transmitted to the Southern Philippines through Sabah. I take it that Sarawak has no problem with the federal government in this cross-border transaction. After all, we are selling power to the Indonesians too in a similar fashion. In December of last year, the Tenaga Nasional Berhad (TNB) began selling green energy to Singapore. So you say that Malaysia, both the West and the East, is a good source of electricity for the neighbours. Here is a good chance for Malaysia as the Asean Chair to play the role of a good promoter of product as well as act as salesman. Should there be any problem with any member of Asean with regard to the project, the Chair would be able to display tact and ingenuity to ensure that this, being an Asean project, has to proceed. Once the vendor and the buyer agree upon the terms of purchase that it is a deal, no second, third or fourth opinion needed. For Malaysia, this a meaningful contribution to the APG scheme itself, which aims to build an electricity grid link with almost all the member countries of Asean. Let's start with Malaysia. The electricity is actually from Sarawak, but never mind the saying 'lembu punya susu, sapi punya nama' (the milk is from the cow, but the buffalo gets the name). Somehow my gut feeling is that this energy grid, going through the territory of Sabah, may meet with some political problems. I'm thinking about the Philippines' claim to Sabah. I am confident that this was on the mind of the Prime Minister before he popped the suggestion, and he was confident that it would not stand in the way because this would be an Asean project. It is crucial that the Chair of Asean will be supported by the other member countries. Malaysia must make a mark during its term of office. 'Good personal relationship matters' I am told that our Prime Minister Datuk Seri Anwar Ibrahim has a good personal relationship with the President of the Republic of the Philippines. That relationship is crucial when it comes to tackling a problem relating to an economic scheme that benefits both parties. This electricity grid is one such scheme. This is a sensible suggestion from our Prime Minister. It is a practicable move that deserves full support by anyone thinking about what to do with excess electricity in Sarawak. At this stage, there appears to be clear evidence of the existence of political will on the part of Malaysian leaders in terms of state-federal relations. However, at this stage, we do not really know what the Philippines government thinks of the proposal. The potential buyer of our electricity has not made known publicly its response or even interest in purchasing power from us. I am sure there will be some response from President Ferdinand R Marcos Jr after he has received the report from his representative. Give him and his colleagues time to think about the proposal by our PM in terms of the economic viability of the purchase of power, and to make decisions at their own speed. Politics may have a role in this deal. My surmise. I hope this would not derail the initial talks on the sale and purchase. Treat the dealing like a normal sale and purchase of a product that the buyer needs and the vendor has the stock for disposal anytime – a business-like transaction. Meanwhile, we should support PM Anwar's proposal if we have enough electricity supply for our own use and enough to sell overseas. We are selling electricity to Indonesia anyway. Is there enough of the product for another buyer? As regards the sale of power to Kalimantan, my sources say that the time may come when the demand will be reduced or even stopped altogether once the Indonesians have built a hydro-power dam across the upper reaches of the River Mahakam. The power generation from that dam will serve the needs of the new capital Nusantara, and the districts along the coast including the city of Samarinda itself. There are several rivers in that part of Borneo that may be dammed for hydropower generation. In 1989, I was in the Sarawak team as a delegate attending the post-Asean Conference on Land Settlement Conference held in Samarinda. I joined a team who rode a Russian double-decker helicopter flying over the great Mahakam; we were being flown to a settlement of Kenyah and Kayan at Datah Bilang. It was an eye-opener. The river, if dammed, would generate an enormous amount of electricity for the entire region. The electricity supply from Sarawak could be affected if the Indonesians could produce enough electricity from their own dams, unless the APG steps in to enable the grid to provide the link to continue. An economic question. Between good neighbours, sharing of electrical power would be mutually beneficial on a commercial basis. It makes good economic sense. The other power (political) is not for sale, though! * The opinions expressed in this article are the columnist's own and do not reflect the view of the newspaper. Asean power grid malaysia Philippines
The Star
4 hours ago
- The Star
Duisburg launches return leg of ASEAN Express to boost Europe-Asia trade
DUISBURG, Germany, June 21 (Xinhua) -- A freight train loaded with maternal and infant products, cosmetics, and medical supplies departed Duisburg, Germany on Saturday, marking the launch of the return leg of the ASEAN (Association of Southeast Asian Nations) Express service. The departure marks the start of bidirectional operations for a new trade corridor linking Europe and Asia. The train is expected to arrive in ASEAN countries in 19 days, traveling via Chongqing, an inland municipality in southwest China. The ASEAN Express has achieved "seamless connection" between two vital international trade routes of the New International Land-Sea Trade Corridor and the China-Europe freight train service. Its transportation efficiency has significantly improved compared with traditional sea routes. "As the service continues to be optimized and expanded, more enterprises are expected to benefit from this efficient and reliable logistics solution, ushering in a new era of trade," said Liu Taiping, chairman of New Land-Sea Corridor Operation Co., Ltd. Li Yan, deputy director of Chongqing port and logistics office, said the ASEAN Express, as an extension of the China-Europe freight train service, is poised to become an efficient, green, and stable economic and trade corridor connecting the two continents. Following the departure ceremony, a promotional event for the ASEAN Express was held, during which representatives from Chinese and German enterprises exchanged views on corridor cooperation and supporting services. Several cooperation agreements were signed.
The Star
11 hours ago
- The Star
WEF Asean 2025 highlights regional resolution on women's empowerment
KUALA LUMPUR: The Women Economic Forum (WEF) Asean 2025 concluded on Saturday (June 21) after three impactful days of dialogue, culminating in the announcement of 27 comprehensive resolutions designed to accelerate women's leadership and inclusive economic growth across the Asean region and beyond. Asean WEF 2025 president Dr Hartini Osman said the resolutions represent a bold, actionable roadmap for Asean nations to empower women through targeted leadership, education, innovation and policy integration. "The outcomes of this forum are crucial in realising the aspirations of women across Asean and globally to advance empowerment, to give voice to those often unheard, and to carry a collective mandate forward. "These resolutions will be brought to the attention of the Prime Minister and the relevant ministers to support the development of gender-related policies that are inclusive, effective and responsive to women's real needs," she told reporters after the closing ceremony of WEF Asean 2025 at Dewan Perdana at the Investment, Trade and Industry Ministry (Miti) Saturday. The forum themed "Women Leaders Beyond Borders: Shaping the Future of the Asean Sheconomy", which started on June 19, was officially closed by Deputy Women, Family and Community Development Minister Datuk Seri Dr Noraini Ahmad, alongside Women Economic Forum founder and president Dr Harbeen Arora Rai. The closing ceremony also witnessed the official handing over of the WEF Asean 2025 resolutions to Dr Harbeen as well as the symbolic passing of the baton by Hartini to the Philippines, which will host the next edition of the WEF forum in October 2026. According to Hartini, the resolution is structured across four key dimensions, beginning with "Inner Power", which focuses on empowering women from within through leadership, education and innovation, while the second dimension, "Inclusion" promotes equitable and sustainable economic growth. The third dimension, "Integration", emphasises cultural, digital, and policy integration for Sheconomy Growth whereas the fourth dimension, "Innovation', calls for improved global connectivity and visibility of Sheconomy in post-normal times. The forum gathered 614 participants from 33 countries, supported by four advisory board members, nine Asean advisors, and three ministries; Miti, Women, Family and Community Development Ministry and the Health Ministry. The high-impact programme featured 24 parallel sessions, 10 plenary discussions, six workshops, nine roundtable sessions, and four firechat dialogues, supported by four keynote speakers, 29 moderators, and 20 members of the organising secretariat. Meanwhile, speaking at the closing ceremony, Noraini said the forum serves as a powerful testament to what can be achieved when shared purpose is matched by decisive action, and when women unite across borders to build a common and brighter future. "This forum sparks inspiration and provides a blueprint for long-term cooperation. And the ideas born here, if nurtured and carried forward, have the power to shape policies, influence markets, and redefine inclusive leadership in Asean and beyond," she said. She also said the forum also acknowledged that bold ideas often come with challenges including complexity, limited resources, resistance to change, steep learning curves as well as the need for time to test and refine them. "Let us reaffirm our commitment to good governance, the cornerstone of impactful intergenerational agendas. As we move from discussion to implementation, the principles of transparency, accountability, efficiency, and effectiveness are more vital than ever. "We believe the outcomes of this forum will be translated into real, measurable actions through sound policies, innovative enterprises, community-led efforts and meaningful collaborations," she added. - Bernama
