The ASEAN region continues to be an attractive destination for foreign direct investment (FDI), which grew to US$224 billion in 2023 – a 5% increase over 2022 despite global economic challenges.
Volkswagen focussed on ASEAN
One of the areas where growth is evident is the automotive industry which is seeing sales volumes grow across the region. This has led the Volkswagen Group to focus its export strategy in the region with the plans including battery electric vehicles (BEVs) in future.
To support this strategy, the German automaker is looking for local suppliers in the various ASEAN countries which have the potential to join its extensive global supply network.
In connection with this, the Malaysia Automotive, Robotics and IoT Institute (MARii) in collaboration with the Malaysia External Trade Development Corporation and Volkswagen Group Malaysia (VGM) recently organised the Supplier Technology Showcase & Business Matching Program for Volkswagen’s Supply Chain. The event, held in Kuala Lumpur, was also supported by the Ministry of Investment, Trade & Industry.
Azrul Reza Aziz, CEO of MARii, emphasized the significance of such programs in enabling local suppliers to become global players. “Our mission is to enhance the competitiveness of local suppliers as aligned with National Automotive Policy 2020 and help them become key contributors on the global stage. By encouraging local suppliers to export their parts and components internationally, programs like this with Volkswagen open vast opportunities. It’s time we looked beyond local business and aimed for global integration,” he said.
16 Malaysian suppliers participated
Sixteen Malaysian suppliers exhibited their latest products and technological innovations at the event and the Volkswagen Group team engaged with each supplier, evaluating their capabilities and exploring potential partnerships. This interactive session showed Volkswagen’s commitment to cultivating high-potential local suppliers to be part of its global operations.
By facilitating these crucial connections, the event aimed to strengthen the competitiveness of local companies on the international stage, fuelling growth and innovation in Malaysia’s automotive sector.
Dr. Susanne Lehmann, Managing Director of VGM, emphasized the critical role that suppliers play in ‘Volkswagen Driving to Success’ within the ASEAN market. She expressed her hope that local suppliers can become key contributors to this export success.
Volkswagen Group Malaysia
VGM is responsible for all operations of producing and distributing Volkswagen products in Malaysia (with retail and aftersales handled by Volkswagen Passenger Cars Malaysia). The company also manages the local assembly operations of models such as the Golf, Golf GTI, Golf R, Tiguan, Tiguan Allspace, Arteon and Touareg at a facility in HICOM Automotive Manufacturers (Malaysia) in Pekan, Pahang.