RAWANG: Malaysia’s automotive industry is responding positively to global demand for e-mobility solutions, and is making the necessary shift to reshape the country’s supply chains and manufacturing processes.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the government aims to make Malaysian companies participate in global trends and lead regionally in smart and energy-efficient mobility technologies.
“Today, R&D is no longer just a business advantage but a national imperative. The world is changing at an unprecedented pace. Technology is disrupting traditional industries, new economic models are emerging, and global competition is intensifying.
“This is why R&D and industry-driven innovation are at the heart of the government’s industrial policies like the National Automotive Policy 2020 and the New Industrial Master Plan 2030. Malaysia aims to evolve from being just a producer of goods to becoming a creator of value, intellectual property, and innovation,” he said at Betamek Bhd’s launch of its new R&D centre today.
Zafrul said the recent chairing of the Asean Economic Ministers Meeting 2025 underscored Malaysia’s collective commitment to advancing economic integration among Asean member states.
He said there are 18 Priority Economic Deliverables (PED) that were proposed by Malaysia and unanimously accepted as key goals under Asean’s Economic Pillar for 2025.
“One of these PEDs is the Asean EV Policy and Guidelines, which aims to promote the sustainable development of EVs in our region. Additionally, we will also actively negotiate, review or upgrade several trade-related protocols and agreements that will help enhance opportunities for our businesses and exporters. These include the Asean Trade in Goods Agreement, the Asean-China Free Trade Area 3.0, and the Asean-India Trade in Goods Agreement,” Zafrul said.
He added that in third-quarter 2024, Malaysia, together with Indonesia, the Philippines, Thailand and Vietnam saw improved foreign direct investment inflow.
This reflects the region’s growing attractiveness as an investment destination as businesses continue to reassess and reconfigure their global operational and supply chain footprints, Tengku Zafrul said.
“Our region attracted investments in automotive, electronics, mining, and services sectors. To continue capitalising on this, Miti and its relevant agencies, such as Mida, will continue to promote our industrial reform policies to make Malaysia a more conducive and attractive destination for investments,“ he added.
Betamek, an original design manufacturer and a leading provider of electronics manufacturing services for the automotive industry, officially launched its R&D centre in Rawang, Selangor.
The R&D centre represents a key step in Betamek’s ongoing efforts to strengthen local innovation capabilities and drive next-generation automotive technology.
Equipped with modern laboratories and collaborative workspaces, the facility is designed to accelerate research in telematics, Internet of Things-connected mobility applications and advanced sensor solutions, catering to the automotive industry’s evolving needs.
Betamek executive director Muhammad Fauzi Abd Ghani said when the company was listed in 2022, a portion of the proceeds was allocated to establish the R&D facility.
“At that time, our budget covered both the building and the equipment. We have utilised RM6.5 million for the building and RM7 million for the equipment.
“Looking ahead, our ongoing research expenditure will be determined as a percentage of our sales. While we currently target around 2%, global companies typically allocate 3% to 5% for R&D. Over time, we plan to move towards that benchmark gradually,” he said.
Betamek managing director Mirzan Mahathir said the automotive markets in Thailand and Vietnam are significant. The company is in discussions with several entities there to explore potential joint collaborations, which would allow Betamek to expand its footprint gradually.
“While our primary focus remains on Thailand, Vietnam, and Indonesia, we are also open to opportunities beyond Asean.
“Our ongoing discussions with companies in Thailand and Vietnam are progressing, but we are not in a position to commit to any agreements this year. Collaboration is crucial, not just for market entry but also for technological partnerships.
“In this regard, we have longstanding collaborations with several companies in China, particularly Shenzhen Zhonghong Technology Co Ltd, with whom we have worked for over 20 years. As a key player in China’s dynamic market, they have been instrumental in supporting businesses there, providing us with valuable insights and opportunities,“ Mirzan said.
He also said Betamek is committed to developing its own innovations and IT capabilities.
“Through joint research and collaboration, we integrate advanced technologies and new features tailored to our market. While our key export destinations include the US and Hong Kong, we also seek strategic partnerships in larger regional markets. In the automotive sector, EV development is a priority, but we are also exploring opportunities in other industries where electronics play an increasingly vital role.”
Mirzan said Betamek’s goal is to leverage its expertise to create competitive, high-value products that drive long-term growth.
