If you've been waiting for Chinese electric vehicle (EV) powerhouse BYD to break ground on a massive local manufacturing facility in Perak, you might want to hold your breath.
The Ministry of Investment, Trade and Industry (MITI) has officially revealed that it has yet to receive any formal notification on whether BYD will proceed with its proposed assembly plant in Tanjung Malim, Perak.
Speaking during a Q&A session in the Dewan Negara, MITI Minister Datuk Seri Johari Abdul Ghani clarified that whether the Chinese automotive giant decides to build, defer, or restructure its investment in Malaysia remains entirely up to the company.
TL;DR — Key Takeaways 20-Second Read 1 No Official Decision Yet: MITI has confirmed that Chinese EV giant BYD has not submitted formal notification on whether it will proceed with its local assembly investment in Tanjung Malim, Perak. 2 Commercial Decision: MITI Minister Johari Abdul Ghani stressed that while Putrajaya sets clear regulatory policy conditions, proceeding with or altering plant investment remains purely a commercial decision for BYD. 3 Tax Incentive Compliance: EV CKD duty and sales tax exemptions remain valid through December 31, 2027, but auto manufacturers must meet local content and Customs Regulations 1988 criteria to qualify. Source: The Edge MalaysiaRead: 2024 vs 2026 BYD Sealion 7 Malaysia: New Dynamic Variant, 800V Charging & Full Upgrade Guide
The inquiry was raised in Parliament by Senator Tan Sri Low Kian Chuan, who asked for an update on BYD’s local assembly plans and whether the automaker had met the localization requirements needed for preferential tax rates under the Completely Knocked Down (CKD) scheme.
In response, Johari emphasized that Putrajaya sets clear policy conditions, but cannot force foreign companies to build factories. MITI also confirmed it has not received any formal notification on whether BYD will proceed with the investment under government conditions.
While the standalone Tanjung Malim plant remains unconfirmed, BYD executives were spotted visiting Inokom's contract assembly plant in Kulim, Kedah last May, leading observers to speculate BYD may opt for contract assembly instead of building from scratch.
The Dec 31, 2027 Incentive DeadlineTo encourage automakers to set up shop in Malaysia, the government offers full exemptions on import duty, excise duty, and sales tax for locally assembled (CKD) EVs until December 31, 2027.
However, getting those tax cuts isn't just a matter of shipping over pre-made parts and screwing on tires.
Unlike pure import tax breaks, the government's CKD incentives require foreign carmakers to buy components from Malaysian suppliers. This protects existing domestic ecosystems, like Proton and Perodua’s network of over 700 local tier suppliers.
Johari warned that eligibility remains strictly tied to compliance with Customs Regulations 1988 and national localization mandates. MITI demands that foreign automakers contribute to:
Higher domestic value additionDevelopment of local parts vendorsTechnology transfer & high-skilled job creation10 Major Brands Are Already Building Cars In Malaysia
While questions swirl around BYD's Tanjung Malim plans, Johari highlighted that Malaysia already boasts a robust network of OEM plants and third-party contract assemblers.
Aside from national icons Proton and Perodua, international manufacturers operate assembly hubs nationwide:
Car Assembly Plants & Hubs In Malaysia MITI Data Manufacturer / Assembler Assembly Location Key Operations Honda Malaysia Pagoh, Melaka Dedicated OEM Assembly Assembly Services (Toyota) Bukit Raja, Selangor Dedicated OEM Assembly Volvo Car Manufacturing Shah Alam, Selangor Dedicated OEM Assembly Tan Chong Motor Assemblies Segambut (KL) & Serendah (Selangor) Multi-Brand OEM Assembly Chery Corporate Malaysia Shah Alam, Selangor EV & ICE Local Assembly Stellantis Malaysia Gurun, Kedah Regional Assembly Hub Inokom Corporation Kulim, Kedah Contract Assembly Hub Automotive Manufacturers (AMM) Pekan, Pahang Contract Assembly Hub Berjaya Assembly Tebrau, Johor Contract Assembly Hub EP Manufacturing (EPMB) Melaka EV Contract Assembly Source: Ministry of Investment, Trade and Industry (MITI) Schema.org Table Structured"The list demonstrates that Malaysia has a strong automotive assembly and manufacturing base," Johari added, assuring that MITI will continue to ensure full utilization of domestic production capacity.
Read: Why BYD’s Surprise Kedah Plant Visit With Sime Motors Is Huge News For EV Buyers
