KUALA LUMPUR, Aug 26 — Deputy Minister of Investment, Trade and Industry, Sim Tze Tzin, has urged the local automotive components sector, particularly manufacturers of critical parts, to venture into the next frontier of technology by exploring opportunities in humanoid robotics.

He said the Malaysia Automotive, Robotics and IoT Institute (MARii) has been tasked with looking into opportunities in the emerging humanoid technology industry given its close links with the automotive industry.

“Moving forward, we hope that our components and critical components will move into the next frontier, which is humanoid,” Sim told reporters after launching the Global Automotive and Technology Expo (GATE 2026) at the Malaysia International Trade and Exhibition Centre (Mitec) today.

The deputy minister highlighted that the government will directly reward companies that commit to higher local content, local research and development (R&D), along with technology transfer in the automotive industry through the upcoming revised New Customised Incentive Mechanism (NCM).

Sim said the revised NCM would be tailored to strengthen the automotive ecosystem, particularly by encouraging new developments in electric vehicles (EVs) and ensuring Malaysia becomes part of the EV supply chain. “We will make the NCM simpler; it will be less complex, and the focus will be on localisation. The reward means they will get tax incentives, meaning the excise duty will be reduced. If they do talent development and R&D, they will get more tax reduction,” he added.

Sim noted that the current policy requires companies in the automotive industry to meet a minimum local content level of 30 per cent.

Minister of Investment, Trade and Industry Datuk Seri Johari Abdul Ghani said last month that the government is revamping the NCM for the automotive industry, with the intention to implement it next year after completing consultations with the relevant ministries, agencies, and industry players. Johari said the main objective is to ensure that more non-critical components are produced by local companies, thereby strengthening the domestic supply chain and creating more opportunities for local vendors.

On another note, Sim said GATE 2026, which has returned for its second edition, aims to achieve RM500 million in sales with 10,000 visitors. He said GATE 2026 marks a good start for Malaysia to strengthen its components and critical parts sector while bridging connections between global technology giants, regional investors and local suppliers.

The three-day event, being held from Aug 26-28, is organised by MARii and Derrisen Sdn Bhd.

The event brings together automotive manufacturers, technology specialists, investors, innovators and solution providers from Malaysia, Asean and international markets to explore investments, exchange expertise and establish strategic partnerships.

The opening ceremony today also featured the exchange of memoranda of understanding between international and Malaysian companies. The collaborations demonstrated GATE’s role in connecting global expertise and technologies with Malaysia’s industrial capabilities, creating opportunities for technology transfer, localisation, supply-chain development, investment and access to new markets. — Bernama