MITI Says No Official Decision Yet On BYD's Tanjung Malim Investment
KUALA LUMPUR, Aug 4 (Bernama) -- The Ministry of Investment, Trade and Industry (MITI) has yet to receive any official information on whether Chinese electric vehicle (EV) maker BYD will proceed with its planned investment in Tanjung Malim, Perak.
Minister Datuk Seri Johari Abdul Ghani said the ministry had not received any formal notification on whether the company would proceed with the investment under the conditions set by the government.
"Any decision to proceed with, defer or revise its investment plans is a commercial decision for the company," he said during the question-and-answer session in the Dewan Negara today.
He was responding to Senator Tan Sri Low Kian Chuan, who sought an update on BYD's proposed assembly plant in Malaysia as an EV manufacturer that has met the localisation requirements to qualify for preferential tax treatment under the completely knocked down (CKD) scheme.
The senator also asked for a list of manufacturers that had begun physical investments in Malaysia, including plant construction.
Johari said the government continued to encourage the local assembly of EVs by offering exemptions on import duty, excise duty and sales tax for CKD vehicles until Dec. 31, 2027.
However, he said eligibility for the incentives remained subject to compliance with the Customs Regulations 1988 and other conditions imposed by the government.
Johari said several automotive manufacturers had already undertaken physical investments in Malaysia through the construction and operation of local assembly plants.
Besides Proton and Perodua, original equipment manufacturers (OEMs) with their own assembly facilities in Malaysia include Honda Malaysia Sdn Bhd in Pagoh, Melaka; Assembly Services Sdn Bhd, which assembles Toyota vehicles in Bukit Raja, Selangor; Volvo Car Manufacturing Malaysia Sdn Bhd in Shah Alam, Selangor; Tan Chong Motor Assemblies Sdn Bhd in Segambut, Kuala Lumpur, and Serendah, Selangor; Chery Corporate Malaysia Sdn Bhd in Shah Alam; and Stellantis Malaysia Sdn Bhd in Gurun, Kedah.
Malaysia also has several third-party contract assemblers that undertake vehicle assembly on behalf of OEMs, including Inokom Corporation Sdn Bhd in Kulim, Kedah; Automotive Manufacturers (Malaysia) Sdn Bhd in Pekan, Pahang; Berjaya Assembly Sdn Bhd in Tebrau, Johor; and EP Manufacturing Bhd in Melaka, he said.
"The list demonstrates that Malaysia has a strong automotive assembly and manufacturing base comprising national carmakers, international manufacturers and third-party contract assemblers.
"The government will continue to monitor the utilisation of existing production capacity and ensure that every new investment contributes meaningfully to higher domestic value-added, the development of local vendors, technology transfer, the creation of high-skilled jobs and stronger export activities," he said.
Johari said the approach was important to ensure the country's production capacity was fully utilised while supporting the development of a competitive and sustainable automotive industry.
-- BERNAMA