1 day Ago By Azanis Shahila Aman
KUALA LUMPUR: Automotive electronic parts and accessories supplier MCE Holdings Bhd is banking on the growing influx of electric vehicles (EVs) from China into Malaysia, which it believes will drive more Chinese carmakers to localise their operations.Managing director Goh Kar Chun said the company has been actively engaging with leading Chinese automotive brands, including Chery and BYD, and is optimistic about securing new projects with them soon."MCE is seeing increasing engagement from Chinese players like Chery and BYD.
We are already lobbying our parts aggressively, and the time will come when they need to localise (their production)," he told Business Times in an exclusive interview recently."That is where our opportunity is. Don't be surprised if we announce project wins with them soon," he added.
Goh said MCE has been transitioning towards more advanced systems in recent years, moving into higher-tech automotive electronics, including in-car infotainment and autonomous driving systems.This shift, he said, is in line with Malaysia's growing automotive industry, where electrification continues to drive demand for advanced electronic systems, including from foreign carmakers with local production operations.MCE has traditionally supplied automotive electronics such as anti-theft keyless entry systems, plastic parts, interior and exterior lamps, functional switches, power window regulators, camera systems and digital video recorders (DVRs).
"For the past two or three years, we have been steering into higher-tech electronics. We are now moving into core electronics for the car, such as infotainment systems and autonomous driving systems," he said. Infotainment systems, also referred to as connected mobility, integrate information and entertainment into a vehicle, allowing for cloud connectivity and communication with other vehicles.
In addition to infotainment, Goh said MCE is heavily involved in autonomous driving systems, which include both assisted and fully autonomous driving technologies. The company has set a long-term vision to become a full-system supplier for autonomous driving systems."In the future, the company will also be providing the 'brain' of the car - the autonomous driving domain control.
We are moving towards becoming a full system supplier for all the necessary components of autonomous driving."You will see our systems in Perodua's new EV, the first national EV. This is a significant milestone for us, and it demonstrates that we're already part of Malaysia's drive toward electrification," he said.
Looking ahead, Goh said Malaysia's automotive industry must ramp up localisation efforts, particularly in automotive electronics, to drive its growth and enhance competitiveness on the global stage. He said the key to unlocking the full potential of the industry lies in increasing local production of high-tech automotive components, especially as the country looks to capitalise on the growing EV market.Goh pointed out that localisation plays a crucial role in keeping manufacturing costs low, a key factor for success in the highly competitive automotive sector.
"In the automotive industry, the higher the cost of production, the less competitive you become."By localising critical components such as automotive electronics, Malaysia can reduce its reliance on imports, lower costs, and become more attractive to investors and manufacturers," he said.Goh acknowledged the existing frameworks like the National Automotive Policy and the National Industrial Manufacturing Master Plan has encouraged localisation in the country.
These policies, he noted, are an important starting point, but the next step is ensuring that these frameworks are effectively enforced."Localisation should not just be about assembling low-tech parts. We need to focus on high-tech electronics, where the government can look at automotive electrical and electronic (E&E)," he said.
On the regional landscape, Goh pointed out that while neighbouring countries like Thailand and Indonesia have strong automotive industries, their focus has largely been on metal stamping, plastics, and rubber. Malaysia, he believes, has the opportunity to differentiate itself by becoming the hub for automotive electronics in the region, much like Thailand is known for its strength in metal stamping."The automotive and semiconductor industries can work closely together.
In Penang, we have a strong semiconductor presence, and if we can collaborate more with them, we could create a full ecosystem for automotive E&E," he said.Moving forward, Goh said with a clear plan in place, MCE aims to become a leader in Malaysia's car electronics component industry and rank among Asean's top three car electronics companies.He pointed to the development of the MC Auto Hub as a key factor in achieving this goal.
"When our new factories are fully operational, with Phase 1 and Phase 2 completed, we will have one in Klang and another in Johor. We are targeting revenue of RM700 million per year. We're currently at RM160 million, but we believe that RM700 million is achievable," he added.
© New Straits Times Press (M) Bhd.
