As a leading global supplier of automotive technology, Bosch is a strong advocate of improving the standards of the automotive industry. They have come up with some suggestions on how Malaysia can prepare themselves for the 2015 Asean Economic Community (AEC) in relations to the auto industry.
During an interview with Martin Hayes, president of Bosch Southeast Asia and Managing Director of Bosch Malaysia and Singapore, he believes that Malaysia can do better in improving the standards of the automotive industry- something that Malaysian's are also suggesting.
He continued on by saying that there are benefits to increasing the automotive standards and one of them is profiting through export possibilities. "Because of Malaysia's standard in the automotive industry, many companies are not willing to invest, but if the standards raise and becomes on par with the rest of ASEAN, import and export markets will open up," said Hayes.
Also present at the interview was Bosch's Klaus Landhaeusser, Southeast head in External and Governmental relations. "In regards to the growth of the automotive industry, Malaysia is at 7 percent whilst the other ASEAN countries such as Thailand are reaching double figures". Malaysia can start improving these figures by introducing higher fuel quality and emission standards.
Landhaeusser believes that the cheapest mode of transport is still through land and if Malaysia does not improve its standards, neighboring countries such as Thailand and Singapore will find it difficult to travel through Malaysia as they are already on Euro 4 fuel quality whilst Malaysia is still at Euro 2. If Malaysian vehicles start to use Euro 4 fuel quality, they will be able to save up to 40 percent in fuel usage, said Landhaeusser.
Asean is predicted to become the 4th largest vehicle manufacturer by 2015. The expected growth of 750 million inhabitants by 2050, combined with an increase of annual car ownership by 10 percent per year, heightens the demand for automobiles significantly. This provides vast opportunities for global car makers and suppliers to further their business operations in the region.