Kuala Lumpur: The Ministry of Investment, Trade and Industry (MITI) is set to engage with Proton Holdings Bhd and Zhejiang Geely Holding Group Co Ltd (Geely) to tackle issues related to the supply chain. This discussion will particularly focus on the electric vehicle assembly hub in Tanjung Malim, Perak, as highlighted by the ministry’s minister, Tengku Datuk Seri Zafrul Abdul Aziz.

According to BERNAMA News Agency, Tengku Zafrul emphasized the importance of reviewing the supply chain concerns, especially given the substantial investments required from both Proton and Geely. He underscored the need to involve local vendors and Malaysians in engineering, installation, maintenance, and management roles during the first phase of the factory development. The minister mentioned these steps during the winding-up session of the Royal Address debate for the ministry in the Dewan Rakyat.

Tengku Zafrul expressed concerns over the potential disadvantages faced by local vendors in competing with Chinese companies. He mentioned discussions with Proton about bringing factories from China directly to Malaysia, which could exert pressure on local manufacturers due to differences in economic scale and expertise. He highlighted the necessity for special incentives to support a domestically sourced supply chain, indicating that such incentives would not be awarded otherwise.

The minister also touched upon Tesla’s potential investment in Malaysia. He noted that while several Southeast Asian countries are vying for Tesla’s attention, the company has not yet committed to establishing a factory in Malaysia. Currently, Tesla operates a single factory in Asia, located in China. Tengku Zafrul stated that any investment by Tesla would depend on its commercial viability and potential for positive returns.