Chinese firms approach MITI over flying car testing in Malaysia

LocalTechnology
19 Aug 2026 • 1:22 PM MYT
The Sun Daily
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KUALA LUMPUR: Several Chinese companies have approached the Ministry of Investment, Trade and Industry (MITI) about using Malaysia as a testing ground for urban air mobility technologies, including so-called flying cars.

Deputy Investment, Trade and Industry Minister Sim Tze Tzin said discussions were still at an early stage, but the companies were also interested in potentially establishing manufacturing and service operations in Malaysia.

“Some Chinese companies have already engaged with MITI, and they want to make Malaysia a testing ground for urban mobility, meaning flying cars,” he told reporters at the kick-off of the Malaysian Aerospace Roadmap Development for LAE and maintenance, repair and overhaul (MRO) digitalisation

Sim said the companies were looking to manufacture in Malaysia and provide related services, although discussions were still at an early stage.

The interest comes as Malaysia steps up efforts to develop the LAE, which encompasses unmanned aircraft systems, drones, urban air mobility and autonomous flight.

Sim said the sector represented a new frontier for Malaysia, with the government keen to position the country early rather than risk falling behind as the technology develops.

“It’s a very exciting time because low altitude economy is very new. Malaysia is among the first few countries to start this study and roadmap. We want to capture the future trend. We don’t want to be left behind.”

Malaysia is developing a national roadmap for the LAE, which is expected to be completed by the end of this year, with implementation expected to begin next year.

The government is benchmarking countries including China, the United Kingdom, Japan, Germany and Singapore as it develops its approach.

However, Sim said regulatory development and safety would be critical before technologies such as urban air mobility could be deployed more widely.

“There’s a lot of regulatory work to be done. If you want to send all these deliveries, they have to be safe. You don’t want suddenly something drop from the sky and hit you, right?”

Sim said Malaysia would need to strike a balance between encouraging innovation and ensuring the regulatory framework could keep pace with technological developments.

“We can make projections and be very optimistic, but realistically, we need industry and the regulator to come together,” he said.

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