“Skills Demand for Automotive Industry” MALAYSIA AUTOMOTIVE INSTITUTE 10 th JULY 2012

1. INTERNATIONAL SKILLS CONFERENCE 2012 TRANSFORMING SKILLS TRAINING TOWARDS A HIGH INCOME ECONOMY “Skills Demand for Automotive Industry” MALAYSIA AUTOMOTIVE INSTITUTE 10th JULY 2012

2. TABLE OF CONTENT • Overview of Automotive Industry • Industry Requirement • Industrial Stand Point • Technology Stand Point • Market Stand Point • Workforce Demand • Conclusion

3. AUTOMOTIVE INDUSTRY OVERVIEW MAIN SECTOR • MANUFACTURING SECTOR • Motor Vehicles covering passenger and commercial vehicles • Motorcycles • Parts and Components related to the above • SALES AND AFTER SALES & SERVICE SECTOR • Dealers and Distribution • Servicing • Recycling • Remanufacturing

4. AUTOMOTIVE INDUSTRY OVERVIEW INTERMEDIATE SECTOR DESIGNERS MACHINES DESIGN TOOL DESIGN PRODUCT DESIGNERS ENGINEERING DESIGNERS LARGE MOULD BASES MACHINE BED MACHINES MAKERS MACHINE PARTS PRIMARY SECTOR STEEL BARS & PLATES BILLETS ROLLING MILLS TOOLS, DIES & MOULDS MAKERS HEAVY FORGERS SUB ASSEMBLERS MAJOR ASSEMBLERS MANUFACTURERS NON FERROUS SMELTER STEEL REFINERS - Plastic Moulders - Extruders - Forgers - Pressworks - Foundries - Diecasters - Machining - Rubber Moulders ALUMINIUM BRASS ETC HEAVY CASTINGS WROUGHT IRON INTERNAL CONSUMERS - TNB, TELEKOM - GENERAL CONSUMERS - CONSTRUCTION & OTHER INDUSTRIES PLASTIC MATERIALS SMELTERS OIL PETROCHEMICAL IRON ORE NATURAL RESOURCES RESOURCE SECTOR • INDUSTRIAL LINKAGES SUPPORTIVE SECTOR MANUFACTURING SECTOR

5. AUTOMOTIVE INDUSTRY OVERVIEW GROSS DOMESTIC PRODUCT (GDP) • In the first quarter of 2012, Malaysia’s economic grew at 4.7 per cent with total Gross Domestic Product (GDP) amounted RM 178.058 billion. Source : Department of Statistics Malaysia, 2012 www.mai.org.my

6. AUTOMOTIVE INDUSTRY OVERVIEW AUTOMOTIVE INDUSTRY SNAPSHOT Automotive are the focus of an extremely wide range of industrial and related activity from materials supply to production and sales, services and other auto-related operations. The automotive industry is one of the Malaysia’s economy core sectors that has potentials to grow further. With 11 motor vehicles manufacturers, 9 motorcycle manufacturers and more than 800 component manufacturers and others Malaysia - ASEAN’s third biggest car market with 600,123TIV in 2011 Import Value 2008 RM 12.78 B 2009 RM 12.95 B 2010RM 17.64 B 2011 RM 15.92 B Export Value 2008 RM 3.28 B 2009 RM 4.73 B 2010RM 5.89 B 2011 RM 5.96 B Employment of more than 300,000 workforce www.mai.org.my

7. AUTOMOTIVE INDUSTRY OVERVIEW TOTAL INDUSTRY VOLUME (TIV) Figure 13.0: Total Industry Volume (TIV) • Total vehicle sales reached 600,123 units in 2011, a 0.8% decline from 2010‘s 605,156 units mainly due to the impact from Japanese earthquake and floods in Thailand. • MAI is of the view that the automotive industry will remain as one of the core industry in Malaysia. • In relation to that, MAI forecasts the TIV for 2012 at 615,000 units, an increase of 2% from the TIV in 2011. www.mai.org.my

8. TABLE OF CONTENT • Overview of Automotive Industry • Industry Requirement • Industrial Stand Point • Technology Stand Point • Market Stand Point • Workforce Demand • Conclusion

9. INDUSTRY REQUIRMENT TRENDS AREAS Industry Technology Market

10. INDUSTRY REQUIRMENT SUB ASSEMBLERS MAJOR ASSEMBLERS MANUFACTURERS - Plastic Moulders - Extruders - Forgers - Pressworks - Foundries - Diecasters - Machining - Rubber Moulders INTERNAL CONSUMERS - TNB, TELEKOM - GENERAL CONSUMERS - CONSTRUCTION & OTHER INDUSTRIES INDUSTRIAL STAND POINT MANUFACTURING SECTOR

11. INDUSTRY REQUIRMENT INDUSTRIAL STAND POINT

12. INDUSTRY REQUIRMENT INDUSTRIAL STAND POINT

13. INDUSTRY REQUIRMENT INDUSTRIAL STAND POINT

14. INDUSTRY REQUIRMENT INDUSTRIAL STAND POINT

15. INDUSTRY REQUIRMENT TECHNOLOGY STAND POINT 2020 – Globally Competitive (IMP3) 3 Focus growth areas requiring HCD: 3 Future Automotive Transmission Mfg Connected Vehicle Production Technology Green Car Automotive Human Capital Development 2 Technology Development Engine Mfg Transmission Design Telematics Vehicle Electronic Lean Technology 1 Manufacturing & Assembly Design & Development Testing Production Maintenance & Quality PPC & Logistic Distribution & After Sales 1985 (IMP1) -Assembly Based Industry Areas to be developed through enhancing R&D and Design capability Current areas to be enhanced

16. INDUSTRY REQUIRMENT TECHNOLOGY STAND POINT www.mai.org.my

17. INDUSTRY REQUIRMENT TECHNOLOGY STAND POINT Fuel Cell The Canadian fuel cell developer and manufacturer, well known as Ballard Power Systems has signed a non-binding Memorandum of Understanding with WEG Industries (Brazil) to collaborate on the product and market development of fuel cell products. Natural Gas Engine Weichai Westport has launched the first natural gas engine in the Chinese commercial vehicle market featuring Westport high pressure direct injection (HPDI) technology. The Weichai Westport HPDI engine delivers the same power and torque as that of the original diesel engine. www.mai.org.my

18. INDUSTRY REQUIRMENT TECHNOLOGY STAND POINT Lightweight Material General Motors has announced its partnership with Japanese Carbon Fibre and composite specialist Teijin Limited. The partners will collaborate to develop carbon fibre composite technologies for “potential high-volume use” globally in GM vehicles. Automotive Recycling Ford through REPREVE polyester fibre, plans to divert about 2 million postconsumer PET plastic bottles to be used in the new Focus Electric and other Ford’s future models. www.mai.org.my

19. INDUSTRY REQUIRMENT TECHNOLOGY STAND POINT Fuel Economy The recent new car sales in the US has indicated the value of miles per gallon (MPG) of vehicle has increased to 22.2mpg from 21.7 mpg. According to TrueCar.com, the average MPG for vehicles sold by US manufacturers is at 20.6mpg in 2011, an increased from 20.1 mpg in 2010. Globally, the trend of vehicle manufacturers is towards Energy Efficient Vehicle which merely consist the performance of vehicle in terms of fuel efficiency and CO2 emission. Diesel Hybrid Mercedes-Benz will be introducing its new E 300 BlueTEC Hybrid later this year. It is claimed for the model to achieve 4.2 litre per 100km (67mpg NEDC) with its new 4-cylinder diesel engine which is capable to produce 204bhp and 500Nm of torque. www.mai.org.my

20. INDUSTRY REQUIRMENT TECHNOLOGY STAND POINT ENERGY EFFICIENT VEHICLE (EEV) FUEL ECONOMY (L/100Km) CO2 EMISSION (g/Km)

21. INDUSTRY REQUIRMENT TECHNOLOGY STAND POINT The Geneva International Motor Show which was held in March 2012 has introduced several new models which is inline with the obvious trend of Energy Efficient Vehicle. This report tends to share some of the specification of world best vehicles according to respective segmentation. The new models are as below: www.mai.org.my

22. INDUSTRY REQUIRMENT TECHNOLOGY STAND POINT www.mai.org.my

23. INDUSTRY REQUIRMENT TECHNOLOGY STAND POINT INTRODUCTION OF NEW MODELS www.mai.org.my

24. INDUSTRY REQUIRMENT TECHNOLOGY STAND POINT INTRODUCTION OF NEW MODELS www.mai.org.my

25. INDUSTRY REQUIRMENT TECHNOLOGY STAND POINT

26. INDUSTRY REQUIRMENT TECHNOLOGY STAND POINT • Creation of new industries for automotive and non-automotive supply chain • High precision and engineering industries; • Design engineering and prototyping industries; • Foundry and casting industries; • Aluminum and Non Ferrous Casting industries; • Vehicle sub-system and component testing industries; • Automotive grade steel industry; and • Engineering Plastic industry.

27. INDUSTRY REQUIRMENT MARKET STAND POINT Automatic Transmissions Daihatsu Motor has announced its new joint-venture with manufacturing company in Malaysia known as Akashi-Kikai Malaysia for the production of automatic transmissions (ATs). Pre-Delivery Inspection (PDI) Centre Honda Malaysia is investing RM 40.12 million in setting up their new Pre-Delivery Inspection (PDI) Centre and Vehicle Quality Test Course at its plant in Alor Gajah, Malacca. www.mai.org.my

28. TABLE OF CONTENT • Overview of Automotive Industry • Industry Requirement • Industrial Stand Point • Technology Stand Point • Market Stand Point • Workforce Demand • Conclusion

29. WORKFORCE DEMAND MAIN SECTOR REQUIREMENT The main sectors of the local automotive industry in the area of human capital need to be enhanced higher Manufacturing After Sales & Service Engineers & Executives Mechanic Technician Automotive Engineer

30. WORKFORCE DEMAND EMPLOYMENT FORECAST • Manufacturing • Designers : 6,900 • Engineers : 8,400 • Executives : 6,720 • Technicians : 15,000 • Skilled workers : 25,500 • Semi-skilled : 15,000 • TOTAL 87,520 • After Sales • Technicians : 15,000 • Skilled workers : 25,500 • TOTAL 87,520

31. WORKFORCE DEMAND CURRENT PROGRAMME

32. WORKFORCE DEMAND CURRENT PROGRAMME

33. CONCLUSION • The automotive industry is considered the single largest manufacturing sector in the world. And it shares the manufacturing value added , employment and export of that country. Such huge backward and forward inter-linkages justified that the automotive industry is the backbone of the economy. • Currently, technology trends is the development of technology towards the energy efficient vehicle which promoting the usage of efficient fuel and also the alternative fuel which towards the zero emission. • In order to enhance the competitiveness of Malaysia automotive industry, Malaysia is leading to be regional hub for Energy Efficient Vehicles (EEV) with high technology uptake among industry players for domestic and regional & international exports. • Skilled workforces are critically required for both manufacturing and after sales sectors currently to support the entire automotive industry ecosystem. Current and future human capital development programmes are created to support the capability of current automotive players and for the future technology development.

34. THANK YOU