As the industry rewires around electronics and software, Malaysia is trying to move from assembling cars to making the higher-value parts inside them, and to carry its own companies up the supply chain as it does.
KUALA LUMPUR, MALAYSIA – Media OutReach Newswire – 4 September 2026 – The global automotive industry is undergoing one of its most significant transformations in decades, and Malaysia is preparing for its next chapter. The vehicle of the future will not be defined by its engine or its bodywork. It is becoming a combination of semiconductors, electronics, software, sensors and batteries, more connected, electrified and intelligent than anything before it. The question facing Malaysia, a country that has assembled cars for half a century, is whether its own companies can evolve at the same pace.
For the Malaysian Investment Development Authority (MIDA), the agency that courts and screens industrial investment, the answer cannot simply be to attract more capital or build more vehicles. Its aim is to create deeper value: stronger technological capabilities, skilled talent, and Malaysian companies embedded more firmly in regional and global supply chains.
Beyond Traditional Manufacturing
Malaysia has spent decades building an automotive and manufacturing base, with established capabilities in electrical and electronics and in semiconductors. The task now, in MIDA's view, is to connect those strengths and steer investment toward the technologies that will define the next generation of mobility: automotive electronics, power systems, battery technology, advanced sensors, vehicle control systems, charging infrastructure and the software behind connected and automated vehicles.
The foundation is substantial. From 2017 through the first half of 2026, Malaysia approved RM71.7 billion, about US$16.9 billion, in investments across 745 projects in the transportation equipment sector, expected to generate over 59,000 jobs. That momentum has carried into this year. That momentum has carried into this year.
In the first half of 2026 alone, the country approved RM218.5 billion, about US$49 billion, in investments overall, almost 12 per cent more than a year earlier, with foreign investors accounting for RM126.9 billion of the total, an increase of more than 18 per cent. What MIDA says it is chasing now is not scale but depth, and the difference shows in the kind of work arriving.
"We are no longer measuring success by the size of the investment alone," said Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, the Chief Executive Officer of MIDA. "The RM218.5 billion we approved in just the first half of this year shows the confidence investors have in Malaysia, but the real test is what that investment leaves behind: the technology transferred, the talent built, and the number of Malaysian companies drawn into global supply chains. That is where the next chapter will be won, in the depth of the value we create, not simply the volume of what we attract."
Deepening Localisation, Strengthening Local Suppliers
Consider Mazda. The Japanese carmaker has maintained a long-standing presence in Malaysia through its partnership with Bermaz Auto, with local assembly providing an important foundation for expanding its manufacturing and supply-chain footprint in the country. In 2026, Mazda moved to deepen that presence through the local assembly of the All-New Mazda CX-5, with a targeted 60 per cent localisation level. The programme represents an important step in strengthening Malaysia's role as a regional manufacturing and export base for Mazda.
The significance of Mazda's commitment lies as much in what it creates for Malaysian companies as in the vehicles themselves. The localisation of the All-New CX-5 provides a platform for Malaysian automotive suppliers to participate more deeply in Mazda's supply chain, while creating opportunities for technology transfer, capability development and stronger industrial linkages between Malaysian and Japanese companies. In this context, localisation is not simply about increasing the percentage of locally sourced components, but about developing effective and higher-value local capabilities that can compete within regional and global automotive supply chains.
This is where MIDA has concentrated its efforts. Through the MIDA–Mazda Strategic Vendor Development and Supply Chain Programme in Hiroshima, Japan, from 19–25 July 2026, MIDA, together with Bermaz Auto, Mazda Malaysia and Mazda Motor Corporation, brought 16 Malaysian automotive vendors from sectors including chassis and suspension, stamping, precision machining, plastic injection moulding, cockpit modules, seating systems and insulation components to engage with Mazda and its Japanese supply-chain partners. The programme resulted in the exchange of five Memorandums of Understanding between Malaysian and Japanese companies, creating concrete opportunities to support the localisation of the All-New Mazda CX-5.
For Malaysia, the deeper significance of Mazda's commitment therefore lies not only in the vehicles assembled locally, but in the industrial ecosystem developing around them. Each localisation project, supplier partnership and technology collaboration strengthens Malaysia's automotive manufacturing capabilities and creates opportunities for Malaysian vendors to move into higher-value activities. More importantly, Mazda's commitment to Malaysia as an ASEAN export hub provides a platform for local companies to integrate into regional supply chains and reinforces Malaysia's position as a competitive and increasingly sophisticated automotive manufacturing base.
From Tier Two, Upward
If Mazda is the carmaker whose deepening presence lifts others, Pecca Group is a Malaysian company climbing on its own. For a quarter of a century, Pecca has cut and stitched the leather that lines the seats of the cars Malaysians drive, supplying the national marques and the Japanese carmakers as a Tier-2 supplier, essential work that rarely commands the highest margins. It has never treated that as its ceiling.
Listed on the Main Board of Bursa Malaysia since 2016 and employing some 800 people, the company is working toward Tier-1 status through seat assembly, and has carried its craft into aviation, manufacturing and refurbishing aircraft cabin interiors under European airworthiness approval for customers from the United States to Australia and the Gulf. "We have been a Tier-2 supplier for twenty-five years, and we are ready for the next chapter," said Foo Ken Nee, Chief Executive Officer of Pecca Group. "Moving up the value chain is how a Malaysian company like ours grows alongside the industry rather than beneath it." Pecca is one of several Malaysian firms, alongside names such as PMB Aluminium, Tomcare Resources and Xenso Tech, whose capabilities are increasingly worth putting before the world.
A Different Measure of Success
The next stage of Malaysia's industrial development, MIDA argues, will require relationships that go beyond the traditional buyer and supplier model, with local companies drawn earlier into product development and, over time, designing and engineering for international markets. Multinationals bring technology, global networks and market access; Malaysian firms bring manufacturing depth and, increasingly, their own engineering. The task is to bring those strengths together.
"Malaysia has assembled the world's cars for fifty years, and we are grateful for it," said Datuk Sikh Shamsul. "But our ambition now is larger. We want the next generation of vehicles to carry Malaysian technology, Malaysian engineering and Malaysian companies within them, not just Malaysian hands on the line. That is the future we are building toward, and the investments arriving today tell us it is within reach."
Ultimately, the country's success in this phase will not be measured by the number of investments secured, but by the depth of the value created: more Malaysian companies in the higher-value segments of the mobility chain, supplying global carmakers and developing technology, and more multinationals deepening their footprint here through research, engineering and supplier development. Malaysia has the industrial foundation, the electronics and automotive expertise, the talent and access to a growing ASEAN market. The challenge now is to connect those strengths more deeply, so that as the industry enters its next generation, the country is not simply along for the ride, but helping to build the road ahead.
Hashtag: #mida #automotive #industry #investment #business #electronics #manufacturing
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About Malaysian Investment Development Authority (MIDA)
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@hkfashionfest @hongkongfashioncouncil
HONG KONG SAR – Media OutReach Newswire – 5 September 2026 – The "Hong Kong Fashion Fest Gala 2026", one of the eight flagship programmes of the third edition of Hong Kong Fashion Fest, was held on 3 September 2026. Sponsored by the Cultural and Creative Industries Development Agency (CCIDA) under the Culture, Sports and Tourism Bureau of the Government of the Hong Kong Special Administrative Region, and organised by the Hong Kong Fashion Council, this year's Gala was held under the theme, "Rhythm of the Heart", the same theme of the third edition of Hong Kong Fashion Fest. The Gala brought together fashion, art and culture in a cross-disciplinary celebration. The opening ceremony was officiated by the Secretary for Culture, Sports and Tourism, Miss Rosanna Law, JP and the Hon Sunny Tan, BBS, Legislative Council Member (Textiles and Garment) and Chairman of the Hong Kong Fashion Council. marking the official opening ceremony of this much-anticipated annual event on Hong Kong's fashion calendar.
(From Left) Ms. Rainy Chan (Executive Director, Hong Kong Design Centre) Mr. Roger Chan (Chairman, Clothing Industry Training Authority) Mr. Steve Leung (Chairman, Hong Kong Design Centre) Hon. Sunny Tan, BBS (Chairman of the Hong Kong Fashion Council, and Member of the Legislative Council, the Honourable Sunny Tan, BBS.) Miss Rosanna Law, JP (Secretary for Culture, Sports and Tourism) Ms Sophia Chong (Executive Director, Hong Kong Trade Development Council) Mr. Kevin Yeung (Chairman, Hong Kong Fashion Designers Association) Dr. Elita Lam (Principal, Hong Kong Design Institute) Miss Drew Lai (Commissioner for Cultural and Creative Industries)
Speaking at the Gala, the Secretary for Culture, Sports and Tourism, Miss Rosanna Law, JP, saying: "Building on Hong Kong's unique kinetic pulse and East-meets-West synergy, and with the Government's steadfast backing through the Cultural and Creative Industries Development Agency, our creative ecosystem is thriving. Within this dynamic landscape, fashion design stands as an indisputable driving force. The Hong Kong Fashion Fest continues to champion fashion as a profound art form and a canvas for self-expression — one that weaves together vision, culture, and history."
Meanwhile, Hon Sunny Tan, BBS, Legislative Council Member (Textiles and Garment) and Chairman of the Hong Kong Fashion Council, extended his gratitude to the participating organisers and industry partners for their steadfast support, saying: "The third Hong Kong Fashion Fest reflects the collective commitment of the Government, CCIDA and industry to advancing Hong Kong's fashion development. With creative talent, international connectivity and strengths across trade, tourism, finance, and textile and apparel, Hong Kong has every ingredient to grow as an international fashion hub for Asia."
In addition, rising favourite by international brands, Jeffrey Ngai and the popular stylish film actress Louise Wong attended the occasion in glamorous style. They were joined on the red carpet by leading fashion influencers and celebrities from Hong Kong and around the world, including Ameera Khan, Fil Xiaobai, Hanan Besovic, Irene Kim, Susanna Lau and Elva Ni. The star-studded presence added glamour and energy to the gala, highlighting Hong Kong's extraordinary position and appeal as an international fashion hub.
Hong Kong Ballet × Robert Wun:
A Groundbreaking Cross-Disciplinary Stage Experience
One of the key highlights of the Hong Kong Fashion Fest Gala 2026 was "Glam Rock", a specially presented three-act ballet performance by Hong Kong Ballet. Taking an innovative and bold approach to ballet, the production reinterpreted the art form by seamlessly blending classical and contemporary dance. The performance was accompanied by iconic rock anthems from Queen, Depeche Mode, and the legendary Hong Kong band Beyond. The powerful rhythms and dynamic physicality of the dancers delivered an exhilarating and refreshingly unconventional experience for the audience.
The dancers performed in bespoke costumes designed by internationally acclaimed Hong Kong designer Robert Wun. Renowned for his cinematic and sculptural silhouettes and refined narrative-driven aesthetics, Wun's designs became another visual highlight of the evening. Through "Glam Rock", world-class choreography, avant-garde fashion and rock music converged into a wholesome and unique artistic expression, offering guests a profound stage experience that combined visual spectacle with cultural references. The production vividly embodied the urban rhythm and creative pulse at the heart of this year's theme, "Rhythm of the Heart."
"Top 10 Asian Designers to Watch" Fashion Show and Award Presentation:
Showcasing the Next Generation of Asian Fashion Talent
Another major highlight of the Hong Kong Fashion Fest Gala 2026 was the "Top 10 Asian Designers to Watch Fashion" Fashion Show & Awards Presentation Ceremony," which showcased the exceptional craftsmanship and distinctive creative visions of ten outstanding designers from different parts of Asia. With a multitude of design languages and cultural sentiment, the showcase presented the dynamic multi-cultural fashion spectacle and forward-thinking approaches to fashion and aesthetics.
Sponsored by the Cultural and Creative Industries Development Agency (CCIDA), Fashion Asia Hong Kong's "10 Asian Designers to Watch" programme is presented by the Hong Kong Design Centre. The programme is dedicated to discovering and promoting the next generation of Asian design talent, and to provide emerging designers with greater visibility, professional exchange and industry opportunities.
Hashtag: #HongKongFashionFest #香港时装荟 #CSTB #文化体育及旅游局 #CCIDA #文创产业发展处
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About Hong Kong Fashion Fest
Announced by the Hong Kong Special Administrative Region Chief Executive in the 2023 Policy Address, "Hong Kong Fashion Fest" will be organised to develop Hong Kong into a fashion design hub in Asia. Through consolidating various fashion design events and introducing innovative elements and affiliate activities annually, the Hong Kong Fashion Fest promotes Hong Kong's fashion and textile design brands and boosts Hong Kong's position as a prime destination for hosting mega cultural and creative events. Under the theme "Rhythm of the Heart", the third edition of Hong Kong Fashion Fest is being held from 1 to 14 September 2026 at various landmarks in Hong Kong. The event will bring together eight flagship programmes organised by six industry organisations and, for the first time, will be combined with CENTRESTAGE - the annual fashion extravaganza organised by the Hong Kong Trade Development Council - to generate stronger synergies. The event will attract fashion design industry players from all over the world to come to Hong Kong; foster collaboration, innovation and business opportunities; establish platform for local and international fashion designers and brands and connect with different sectors in the fashion design industry of Hong Kong, the Chinese Mainland and overseas, thereby consolidating Hong Kong's position as the East-meets-West centre for international cultural exchange.
Website: www.hongkongfashionfest.com
Facebook: https://www.facebook.com/hongkongfashionfest
Instagram: https://www.instagram.com/hkfashionfest
YouTube: https://www.youtube.com/@hkfashionfest
About Cultural and Creative Industries Development Agency (CCIDA)
The Cultural and Creative Industries Development Agency (CCIDA), formerly known as Create Hong Kong (CreateHK) since 2009, was established in June 2024. CCIDA is a dedicated office under the Culture, Sports and Tourism Bureau of the Government of the Hong Kong Special Administrative Region (HKSAR Government) to provide one-stop services and support to the cultural and creative sectors with a mission to foster a conducive environment in Hong Kong to facilitate development of the arts, culture and creative sectors as industries. CCIDA's strategic foci are nurturing talent and facilitating start-ups, exploring markets, promoting cross-sectoral and multi-disciplinary collaboration, promoting industrialisation of the arts, culture and creative sectors under the industry-oriented principle, and fostering a creative atmosphere in the community, thereby reinforcing Hong Kong as Asia's creative capital and our positioning as the East-meets-West centre for international cultural exchange.
Disclaimer: The Government of the Hong Kong Special Administrative Region provides funding support to the project only, and does not otherwise take part in the project. Any opinions, findings, conclusions or recommendations expressed in these materials/events (or by members of the project team) are those of the project organisers only and do not reflect the views of the Government of the Hong Kong Special Administrative Region, the Culture, Sports and Tourism Bureau, the Cultural and Creative Industries Development Agency, the CreateSmart Initiative Secretariat or the CreateSmart Initiative Vetting Committee.
About Hong Kong Fashion Council
Established in 2024, Hong Kong Fashion Council is a not-for-profit representative body dedicated to uniting all fashion initiatives in Hong Kong to support the growth of the fashion industry. HKFC envisions Hong Kong as Asia's leading international fashion hub, leveraging the city's unique geographical and multicultural context to drive creativity, innovation, collaboration, and sustainability in fashion. Committed to supporting stakeholders throughout the entire fashion ecosystem, HKFC is building a collaborative network between the East and the West to showcase Asia's vibrant fashion identity.
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Instagram: http://www.instagram.com/hongkongfashioncouncil
LinkedIn: https://www.linkedin.com/company/hongkongfashioncouncil/
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