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Home Automotive

Malaysia Targets Level 3 Autonomous Driving Capability By 2030

The government says the industry must begin preparing now for the shift towards autonomous mobility technologies.

by Heirul Kamel
May 11, 2026
Celcom-5G-showcae-autonomous-car-main hires
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Malaysia is targeting to achieve Level 3 autonomous driving capability by 2030, according to Deputy Minister of Investment, Trade and Industry Sim Tze Tzin. The initiative, he noted, is part of the country’s efforts to prepare or future mobility technologies, including autonomous vehicles and their supporting ecosystem.

Speaking to reporters on Monday during the 2nd ASEAN Automotive and Mobility Conference organised by PwC Malaysia, Sim said the government wants the local industry to begin preparing for the transition. This includes positioning local companies as suppliers of chips, sensors, and software related to autonomous driving systems.

deputy miti minister Sim Tze Tzin
Deputy Minister of Investment, Trade and Industry Sim Tze Tzin (Image: The Edge Malaysia)

“Our local vendors will need to upgrade their capabilities, while local authorities and the Public Works Department (JKR) must also improve road conditions and supporting infrastructure, including road signs and related facilities,” he said. “This is a whole-of-nation effort.”

To refresh, SAE International categorises autonomous driving systems into six levels, ranging from Level 0, where there is no automation, to Level 5, which represents full self-driving capability under all conditions. Level 3 automation allows a vehicle to drive itself in certain situations, although the driver must remain ready to take over when necessary.

miti verifying claims of chinese ai model training in malaysia
Image: Bernama

Ambitions To Be In The Lead

Sim said Malaysia has not yet seriously started discussing autonomous driving technologies, adding that the country remains heavily focused on conventional vehicle manufacturing. “I think this is where the conversation needs to begin because we are still too focused on manufacturing traditional vehicles, while Malaysia has yet to seriously start discussing autonomous driving, which is something I intend to push for,” he said.

The deputy MITI minister added that the Malaysia Automotive, Robotics and IoT Institute (MARii) will be tasked with advancing the initiative moving forward. According to Sim, autonomous driving would require major changes across multiple sectors, including semiconductor design, software development, sensor manufacturing, and infrastructure upgrades.

“While we are working hard to catch up with today’s technology, we must not lose sight of what is coming next, he said. “I believe the true future of mobility is autonomous driving.”

Nanomalaysia NAVi MOSTI autonomous vehicle
Photo: NanoMalaysia

Sim also highlighted the rapid growth of autonomous driving adoption in the United States, noting that the technology has expanded from around four cities last year to approximately 40 cities this year, with more expected next year. Earlier during his opening remarks at the conference, he urged industry players to begin planning beyond today’s automotive technologies and prepare for future mobility trends.

“If we focus only on today, we will always be chasing others,” the deputy MITI minister said. “But if we start building the foundation for autonomous technology now, Malaysia can lead the region.”

Mercedes-EQ, EQS, V 297, 2021

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Existing Level 3 Systems 

While fully autonomous vehicles are still relatively rare, several carmakers have already introduced Level 3-capable systems in selected markets. Mercedes-Benz currently offers its Drive Pilot system in parts of Germany and the United States through models such as the Mercedes-Benz S-Class and Mercedes-Benz EQS. The system allows hands-free driving under certain highway conditions and traffic speeds, although drivers must still remain ready to regain control when prompted.

Honda also became one of the first automakers to commercialise Level 3 technology with the Honda Legend in Japan. Meanwhile, Chinese automakers such as XPeng and Huawei have continued expanding advanced assisted driving capabilities in their domestic market.

Apollo Go Baidu robotaxi
Image: Baidu / Apollo Go

Concerns Around The Technology

At the same time, autonomous driving technologies have also faced growing scrutiny over safety and reliability. Several investigations in recent years involving Tesla driver assistance systems, including crashes linked to Autopilot and Full Self-Driving features, have raised concerns about driver overreliance and the limitations of current systems.

Robotaxi operators in the US and China have also encountered incidents involving unexpected braking, traffic obstruction, and collisions, prompting tighter regulatory oversight in some cities. Additionally, industry observers have frequently pointed out that one of the biggest challenges surrounding Level 3 autonomy is ensuring drivers remain attentive enough to safely retake control when the system reaches its operational limits.

(Source: The Edge Malaysia)

Filed Under Autonomous Drivingmiti
Updated 8:17 pm, Mon, 11 May 26
https://lowy.at/sa9r1
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