This information is confidential and was prepared by Malaysia Automotive Institute solely for the use of our client; it is not to be relied on by any 3rd party without MAIs prior written consent

MALAYSIA AUTOMOTIVE ECONOMY

TRENDS & OUTLOOK

2012 / 2013

Executive Summary 1

Chapter 1:

Malaysia Macroeconomic 2012 Performance Overview 2 - 21

Chapter 2:

Malaysia Automotive Industry Performance & Challenges 22 - 47

Chapter 3:

Malaysia Automotive Industry Outlook 48

CONTENT

EXECUTIVE SUMMARY

The publication of Malaysia Automotive Economy Trends & Outlook 2012 / 2013 consists performance review of Malaysia key macro-economic indicators in 2012 and forecasts the impact of global economic trend to Malaysia automotive industry in 2013. A review on selected major raw materials in automotive industry will be included i.e. the effect of global scenarios such as hikes of crude oil price as well as projection of future material application in specific automotive technology. The publication will also review and analyse the Malaysian automotive industry which has logged several key milestones throughout the year. A TIV that recorded a total of 627,753 units in 2012, an achievement that had exceeded MAIs forecast of 615,000 units early last year. Moving forward, MAI foresees that TIV performance in 2013 will continue to record an encouraging growth. This is supported by a number of factors including expansion plan / investment announced by several OEMs in 2012 which will see increment in the number of vehicles production for 2013 and launching of new models especially in the passenger vehicle (PV) segment. In addition to that, the new National Automotive Policy (NAP) which is expected to be announced this year (on gradual basis), will among others create a conducive business environment especially in the production of Energy-Efficient Vehicle (EEV) segment.

Malaysia Automotive Institute Page 1

Malaysia Automotive Institute

CHAPTER 1: MALAYSIA MACROECONOMIC 2012 OVERVIEW

The Malaysian economy continued to grow steadily throughout 2012 despite most of the worlds major developed nations continue to experience slower economic recovery from previous year including the euro zone sovereign debt, resulting in the fluctuation of interest rates and currencies and higher degree of market uncertainties. The combination of financial crunch, public debt, banking crisis and economic predicament continue to hinder quick solutions of this global financial catastrophe. Strong domestic demand continue to drive Malaysian economic growth although slightly slower year-on-year growth in private consumption and private and public investment outlays. GDP growth in Q3 2012 has recorded growth of 5.2%, dropped to 0.4% as compared to previous quarter after slow beginning in Q1 2012 with 5.1%. Real GDP growth in 2012 is expected to settle at 5.1%.

MALAYSIA ECONOMY 2012 OVERVIEW

Source: Malaysia Institute of Economic Research (MIER), MAI Analysis

INDUSTRY SNAPSHOT

Malaysia Automotive Institute

Malaysia is the third largest automotive market in ASEAN region, with 627,753 units

of TIV in 2012, positioned behind Thailand with 1,436,335 units of TIV and Indonesia with 1,116,230 units of TIV.

In term of production, Malaysia remain at third position with TPV of 569,620 units

while Thailand and Indonesia remain as regional top two producers with TPV of 2,453,717 units and 1,065,557 units respectively.

The industry consist of 11 motor vehicles manufacturers, 9 motorcycle manufacturers and more than 800 parts & components manufacturers.

The industry employs more than 300,000 workforce from the level of operators, technician, engineers to top management level.

Automotive are the focus on an extremely wide range of industrial and related activity from materials supply to production, sales, services and other auto-related operations. The automotive industry is one of the Malaysias economy core sector that has potentials to grow further.

CHAPTER 2: MALAYSIA AUTOMOTIVE INDUSTRY PERFORMANCE & CHALLENGES

About Malaysia Automotive Institute (MAI)

The Malaysia Automotive Institute (MAI), an agency under the Ministry of International Trade & Industry (MITI), was set up to serve as the focal point & coordination centre for the development of the local automotive industry in all matters related to automotive industry, including analysis and recommendation of automotive related policies; managing manpower, technology and supply chain development and coordinating outreach activities. For further details, please log in at www.mai.org.my

Contact: Malaysia Automotive Institute

F08 - F14, 1st Floor

Block 2320, Century Square

Jalan Usahawan, Cyber 6

63000 Cyberjaya, Selangor

Tel : 603-83187742

Fax: 603-83187743