CAEP Calls for Closer Ties Between Auto and Chip Sectors
At the first meeting of the Council of Automotive Eminent Persons (CAEP), Deputy MITI Minister YB Liew Chin Tong emphasised Malaysia’s pressing need to integrate its thriving semiconductor and automotive industries.
The CAEP, chaired by MITI Minister Tengku Zafrul Aziz, has been formed to re-evaluate and transform the country’s automotive sector in response to global shifts toward electric, connected, and autonomous vehicles.
Although Malaysia is home to a well-established semiconductor ecosystem and a growing automotive industry, both of which collectively support hundreds of thousands of jobs, Liew noted the absence of meaningful synergy between the two.
“There is no significant horizontal integration between our semiconductor and automotive industries,” he said. “This is despite the fact that modern vehicles are increasingly defined by semiconductors, particularly in the context of connected, autonomous, shared, and electric mobility trends.”
Malaysia currently plays a critical global role in semiconductor manufacturing, particularly in chip packaging, testing, and assembly. It is also active in producing automotive-grade chips, a high-growth segment seen as vital to the future of mobility.
Bridging the gap between the two sectors, Liew said, could significantly strengthen Malaysia’s position across both industries. As vehicles become more reliant on software and electronics, the integration of local capabilities can offer both economic and strategic advantages.
“The opportunity lies in aligning the strengths of both sectors. This includes facilitating collaboration between OEMs, Tier 1 suppliers, and chipmakers, as well as building domestic capabilities across the mobility technology value chain,” he explained.
He further highlighted that Malaysia’s reliance on internal combustion engine (ICE) vehicles has contributed to a high national oil import bill. This, in turn, strengthens the case for accelerating the electric vehicle transition as a means of ensuring long-term energy security.
In this context, the appointment of Petronas CEO Tengku Muhammad Taufik as Alternate Chair of CAEP reflects the government’s broader ambition. His leadership is expected to support a more integrated national strategy that links energy, automotive, and semiconductor development with the aim of returning Malaysia to the ranks of major oil-exporting nations.
Industry observers have welcomed these developments as timely. With global automakers pivoting to EVs and smart mobility solutions, supply chains are being reorganised around advanced electronics and chip technologies.
Malaysia, already a crucial part of this global value chain, is well positioned to benefit from this provided it pursues deliberate cross-sector collaboration and strong policy direction.
The CAEP is expected to outline a national roadmap in its next phase of work, with key focus areas likely to include innovation clusters, talent development, and co-located industrial ecosystems.
As the global automotive landscape continues to evolve, Malaysia is not only working to keep pace but is seeking to lead in high-value areas, powered by its semiconductor expertise and growing automotive ambition.
Written By
Kumeran Sagathevan
More then half his life spend being obsessed with all thing go-fast, performance and automotive only to find out he's actually Captain Slow behind the wheels...oh well!
JPJ Running Numbers
KUALA LUMPUR
VPS2421
SELANGOR
BSH7411
JOHOR
JYG6320
PULAU PINANG
PRT9853
PERAK
APB2053
PAHANG
CFD4678
KEDAH
KGC2704
NEGERI SEMBILAN
NEH1085
KOTA KINABALU
SJM5852
KUCHING
QAB1588M
Last updated 16 Sep, 2025
Fuel Price
Petrol
RON 95
RM 2.05
RON 97
RM 3.18
+0.02
RON 100
RM 5.00
VPR
RM 6.23
Diesel
EURO 5 B10
RM 2.90
+0.02
EURO 5 B7
RM 3.10
+0.02
Last updated 11 Sep, 2025
Related News
MITI Launches NAP2020 Mid-Term Review with Focus on EVs, NxGV
MITI set to reassess NAP2020 and ensure Malaysia’s automotive policy keeps pace with EVs, NxGVs and global mobility trends.
19-08-2025
Sarawak’s Gas Push Could Undermine Petronas - Analyst
Sarawak’s bid for gas control could unsettle Petronas and Malaysia’s reputation as a trusted LNG supplier.
08-09-2025
PM: No RON95 Price Hike Despite Global Tensions
Malaysia will keep RON95 prices steady despite rising global oil tensions, says PM.
20-06-2025
ADaPTiV: MARii, Petronas Smart Vehicle Maintenance Tech
MARii and Petronas launch ADaPTiV to revolutionise car care using AI and real-time data.
16-06-2025
PMX: Petronas Layoffs Not a Crisis, Mostly Contract Staff
PMX: 5,000 job cuts at Petronas isn’t alarming, most affected are contract workers.
07-06-2025
5,000 Retrenched As Petronas ‘Reinvents’ Itself
Petronas ‘reinvents’ itself, job cuts totalling up to 5,000 people, promotion freeze, and revamped processes comes in wake of which.
06-06-2025
Perodua Inks MoU With Gentari And Petronas For EV Charging And More
Perodua inks Memorandum of Understanding (MoU) with Gentari and Petronas over EV charging and various additional services.
21-11-2024
Petronas Reportedly Set To Sell Minority Stake In Gentari
Petronas reportedly mulling to sell minority stake in its Gentari renewable energies arm to fund expansion plans.
22-10-2024
Latest News
Uprated 489 HP Zeekr X Revealed in China — Will Malaysia Get It?
Zeekr X gets 489 hp power bump, delivering more performance while keeping its familiar hot hatch looks.
13-09-2025
Toyota bZ7 EV Images Unveiled in China Ahead of Year-End Debut
The first images of the upcoming Toyota bZ7 EV saloon have surfaced in China ahead of its debut later this year.
12-09-2025
New GWM Ora Cat EV SUV Revealed In Leaked MIIT Filings
New GWM Ora Cat exposed via leaked MIIT filing documents, Chinese market launch expected soon.
11-09-2025
iCaur Petaling Jaya Hosts World’s First iCaur 03 Delivery With Collector JP Chin
iCaur Petaling Jaya hosts world’s first iCaur 03 delivery event, hands over first unit to renowned car collector JP Chin.
11-09-2025
Second-Gen Xpeng P7 Makes European Debut, Mona M03 Coming Soon
The second-gen Xpeng P7 makes its maiden European debut in Munich, with the Mona M03 next bound for the market.
11-09-2025
Radical Hyundai Ioniq Concept Three Previews Brand’s Future EV Hatch
The all-new Hyundai Ioniq Concept Three previews the marque’s future electric hatch, possibly known as the Ioniq 3.
10-09-2025
MITI Finalising New Customised Incentive Mechanism to Drive EV Growth
MITI is finalising a New Customised Incentive Mechanism to attract investments and strengthen Malaysia’s automotive sector.
10-09-2025
Euro-Bound Leapmotor B05 (Lafa 5) EV Hatch Officially Debuts
VW ID.3-rivalling new Leapmotor B05 (Lafa 5) EV hatch for Europe bows at IAA Mobility 2025 show.
09-09-2025
Show More
trending_flat