KUALA LUMPUR: The 2018 Budget is set to boost the nation's automotive sector, via direct and indirect positive impact on various parties involved in the sector, said the Malaysian Automotive Institute (MAI).

MAI chief executive officer Datuk Madani Sahari said the eight main trusts (of the 2018 Budget) presented provided a structured focus, based on the strategic needs of different set of individuals and business entities with specific requirements in enhancing their efforts and capabilities.

"This year's budget provides a special approach in preparing Malaysia's growth in accordance with the Industry 4.0.

"Manufacturers of vehicle component (vendors) can shift into higher gear, resulting from the RM245 million allocation set aside under the budget to upgrade smart manufacturing facilities," he said in response to the 2018 Budget proposals unveiled by Prime Minister Datuk Seri Najib Razak in Parliament on Friday.

Themed, "Prospering An Inclusive Economy, Balancing Between Worldly And Hereafter, For The Wellbeing Of Rakyat, Towards National Transformation 2050 Aspiration", Najib announced eight main thrusts in the 2018 Budget to ensure the nation's wealth and prosperity to be enjoyed equitably and inclusively through strong economic growth and competitiveness.

Madani added, the focus given to technical and vocational education training (TVET) would pave the way for new career opportunities and career enhancement for those joining the automotive industry with the necessary skills.

"The automotive industry needs many employees who are highly-skilled in every aspect, be it manufacturing or after-sales," he said, adding that the first thrust of invigorating investment, trade, and industries would stimulate more inclusive investment and business, including in next he automotive sector.

The allocation of RM1.25 billion to increase exports would spur the rate of exports for component manufacturers, said Madani.

"More interestingly, the allocation for micro financing, presented in the 2018 Budget, hopefully will encourage and be an incentive to small and medium enterprises to be involved in the automotive sector.

"Micro businessmen now have a chance to be involved in all kinds of auto-related business like motor workshops, car cushion refurbishment, fabrication of logistics equipment and so on," he said.

In general, he stressed that the just-unveiled budget focused on long-term economic growth for the next 30 years.

"It is hoped that the 2018 Budget proposals will bring about impact and new impetus to the people and simultaneously raise Malaysia's economy to a next level," he added. - Bernama