BYD was named as the anchor tenant for the first phase of the 1,500-acre industrial development and was expected to occupy around 150 acres.
THE Ministry of Investment, Trade and Industry (MITI) has not received formal confirmation on whether BYD will proceed with its proposed electric vehicle assembly plant in Tanjong Malim, Bernama reports.
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said any decision to proceed with, postpone or revise the investment would be a commercial decision for BYD.
He was responding to Senator Tan Sri Low Kian Chuan in the Dewan Negara, who requested an update on BYD’s proposed local assembly operation and its eligibility for preferential tax treatment under the completely knocked-down (CKD) scheme.
Johari said the government continues to encourage local EV assembly through exemptions on import duty, excise duty and sales tax until 31 December 2027.
However, eligibility remains subject to compliance with the Customs Regulations 1988 and other conditions imposed by the government.
To recap, KLK Land announced in August 2025 that BYD would establish its first Malaysian vehicle assembly plant at KLK TechPark in Tanjong Malim.
BYD was named as the anchor tenant for the first phase of the 1,500-acre industrial development and was expected to occupy around 150 acres.
In a statement issued on March 31, MITI confirmed that BYD Automotive Malaysia had received an interim manufacturing licence on Sept 29 2025 to assemble electric and plug-in hybrid vehicles in Tanjong Malim.
The approval limits domestic sales to 10,000 units annually, equivalent to 20% of BYD’s projected production capacity. CKD vehicles sold locally would also be subject to a minimum on-the-road price of RM 100,000.
MITI added that the assembly operation must include body, paint and trim processes in Malaysia to qualify as a high-value manufacturing activity.
The uncertainty comes as new rules for fully imported EVs took effect on 1 July 2026. Under the revised requirements, completely built-up (CBU) EVs imported through the Franchise Approved Permit scheme must have a minimum cost, insurance and freight value of RM 200,000 and produce at least 180 kW.
Deputy Investment, Trade and Industry Minister Sim Tze Tzin told The Edge in May that carmakers seeking to offer EVs priced between RM 100,000 and RM 200,000 could instead work with Malaysian contract manufacturers.
Later that month, Sime Motors revealed that BYD vice-president Liu Xueliang and other company representatives had visited its Inokom assembly plant in Kulim, Kedah.
The visit fuelled speculation that BYD could work with Sime Motors on contract assembly instead of proceeding with its own Tanjong Malim facility. However, neither company has confirmed such an arrangement.
