MITI Has Yet to Receive Official Update on BYD’s Tanjung Malim Investment

KUALA LUMPUR, AUGUST 2026 – The Ministry of Investment, Trade and Industry (MITI) has yet to receive any official information regarding the status of BYD’s proposed electric vehicle investment in Tanjung Malim, Perak.

Minister Datuk Seri Johari Abdul Ghani said the government had not been formally informed whether the Chinese electric vehicle manufacturer intends to proceed with the investment, postpone it or make changes to its original plan.

Speaking during a question-and-answer session in the Dewan Negara, Johari said any decision taken by BYD would be a commercial matter for the company.

However, he stressed that the investment would still need to comply with the conditions and requirements established by the Malaysian government.

Johari was responding to a question from Senator Tan Sri Low Kian Chuan regarding the latest progress of BYD’s proposed assembly plant in Malaysia.

The senator also sought clarification on electric vehicle manufacturers that had fulfilled localisation requirements to qualify for preferential tax treatment under Malaysia’s completely knocked-down, or CKD, vehicle assembly programme.

The government will continue encouraging local EV assembly activities through exemptions on import duties, excise duties and sales tax for CKD vehicles until December 31, 2027.

Eligibility for these incentives is subject to compliance with the Customs Regulations 1988 and other conditions imposed by the government.

Johari said the incentive framework is intended to encourage manufacturers to establish meaningful local operations rather than relying entirely on imported fully built vehicles.

Malaysia already hosts several automotive manufacturers with their own local assembly facilities.

Apart from national carmakers Proton and Perodua, companies operating assembly plants include Honda Malaysia in Pagoh, Johor; Assembly Services Sdn Bhd for Toyota in Bukit Raja, Selangor; and Volvo Car Manufacturing Malaysia in Shah Alam.

Other manufacturers with local facilities include Tan Chong Motor Assemblies in Segambut and Serendah, Chery Corporate Malaysia in Shah Alam, and Stellantis Malaysia in Gurun, Kedah.

Malaysia also has third-party contract assemblers that manufacture vehicles for original equipment manufacturers.

These companies include Inokom Corporation in Kulim, Automotive Manufacturers Malaysia in Pekan, Berjaya Assembly in Tebrau and EP Manufacturing in Melaka.

Johari said the presence of national manufacturers, international automotive companies and contract assemblers demonstrates Malaysia’s strong vehicle assembly and production capacity.

The government will continue monitoring how existing capacity is used before assessing new investments in the automotive sector.

According to Johari, future automotive investments must provide tangible benefits to Malaysia through higher domestic value creation, local vendor development and technology transfer.