Proton’s RM3.2 Billion Local Sourcing Initiative Boosts Malaysian Economy


Kuala lumpur: Proton Holdings Bhd sourced RM3.2 billion worth of parts and components from local vendors this year alone, underscoring its commitment to a localised supply chain that will continue to grow in scale and value. Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz stated that the doubling of Proton’s total industry volume (TIV) and its expanded local sourcing have ensured that Malaysian vendors benefit. At the same time, economic value spillover is captured within the country.



According to BERNAMA News Agency, Tengku Zafrul highlighted the importance of Proton’s role in strengthening Malaysia’s automotive industrial backbone, which extends beyond merely producing cars. The company’s focus on electric vehicle (EV) platforms, powertrain testing, and localisation of key components is enhancing the nation’s competitiveness. During his speech at the launch of the new-generation Proton Saga at the Malaysia International Trade and Exhibition Centre (MITEC), he emphasized Proton’s alignment with NIMP 2030, which positions the company’s EV investments and localisation efforts as pivotal to Malaysia’s transformation into a high-tech, digitally vibrant nation.



Proton’s localisation programme has introduced 18 new technologies and established joint ventures in critical areas, such as fuel pumps, electronic gearshift modules, and continuously variable transmission (CVT) systems. This initiative has broadened the vendor base and elevated technological mastery. Proton’s contributions to EV platforms and advanced manufacturing are vital, including initiatives like the Automotive High-Tech Valley in Tanjong Malim, the opening of its first EV plant, and a partnership with the Malaysia Automotive Robotics and IoT Institute (MARii) to establish the National Automotive Test Centre (NATC).



Policies under the Ministry of Investment, Trade and Industry (MITI), such as the National Automotive Policy (NAP) and the New Industrial Master Plan 2030 (NIMP 2030), have played a significant role in strengthening local industry players, including Proton. Tengku Zafrul noted that these policies have facilitated the development of a supportive ecosystem, encouraging technology upgrading, strategic foreign-local partnerships, and improved competitiveness in both domestic and regional markets.



The NAP serves as a guiding framework to position Malaysia as a regional leader in automotive manufacturing, engineering, and technology. Its priorities include building the next-generation vehicle (NxGV) ecosystem, expanding mobility as a service (MaaS), and preparing the industry for IR4.0.