Kuala lumpur: The Ministry of Investment, Trade and Industry (MITI) has yet to receive any official information on whether Chinese electric vehicle (EV) maker BYD will proceed with its planned investment in Tanjung Malim, Perak. Minister Datuk Seri Johari Abdul Ghani stated that the ministry had not received any formal notification on whether the company would move forward with the investment under the conditions set by the government.
According to BERNAMA News Agency, Minister Johari mentioned this during a question-and-answer session in the Dewan Negara, responding to Senator Tan Sri Low Kian Chuan's inquiry about BYD's proposed assembly plant in Malaysia. The senator sought an update on the EV manufacturer, which has met the localization requirements to qualify for preferential tax treatment under the completely knocked down (CKD) scheme. Johari clarified that any decision regarding the investment was a commercial one for BYD to make.
Johari further explained that the government encourages local assembly of EVs by offering exemptions on import duty, excise duty, and sales tax for CKD vehicles until December 31, 2027. However, he noted that eligibility for these incentives remains subject to compliance with the Customs Regulations 1988 and other government-imposed conditions.
The minister also shared that several automotive manufacturers have already undertaken physical investments in Malaysia through the construction and operation of local assembly plants. These include national carmakers like Proton and Perodua, and international original equipment manufacturers (OEMs) such as Honda Malaysia Sdn Bhd, Assembly Services Sdn Bhd for Toyota, Volvo Car Manufacturing Malaysia Sdn Bhd, Tan Chong Motor Assemblies Sdn Bhd, Chery Corporate Malaysia Sdn Bhd, and Stellantis Malaysia Sdn Bhd.
Moreover, Malaysia hosts several third-party contract assemblers that carry out vehicle assembly on behalf of OEMs. These include Inokom Corporation Sdn Bhd, Automotive Manufacturers (Malaysia) Sdn Bhd, Berjaya Assembly Sdn Bhd, and EP Manufacturing Bhd.
"The list demonstrates that Malaysia has a strong automotive assembly and manufacturing base comprising national carmakers, international manufacturers, and third-party contract assemblers," Johari emphasized. He added that the government would continue to monitor the utilization of existing production capacity to ensure that new investments contribute to higher domestic value-added, the development of local vendors, technology transfer, the creation of high-skilled jobs, and stronger export activities.
Johari concluded by affirming that this approach is crucial for fully utilizing the country's production capacity while supporting the development of a competitive and sustainable automotive industry.