KUALA LUMPUR, Feb 21 — The government is currently working to establish an industrial zone specifically for the circular economy business practices of the automotive industry.

Malaysia Automotive, Robotics and IoT Institute (MARII) chief executive officer Datuk Madani Sahari said looking at Port Klang as an option, the dedicated industrial zone would promote activities that included recycling and remanufacturing for the industry.

“For example, hybrid batteries (for vehicles), you need to recycle them but we do not have the capacity to recycle them, like for Volvo hybrid batteries, they are sent back to Sweden for recycling process.

“In order to avoid the waste of logistics, we are planning on recycling in Malaysia, but to do this, we need a proper zone and standards,” he told reporters after the launch of the National Automotive Policy 2020 (NAP 2020) here, today.

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As part and parcel of the intended industrial zone, Madani also hopes to have the option to conduct testings on local used cars to be exported for overseas market as well.

“We are hoping to get it (location) finalised in the next 12 months, which we expect to have a minimum of 40.46 hectares of land.

“We have yet to identify investors for the industrial zone at this time,” he added. — Bernama

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