BYD Rethinks Malaysia Plant As New Rules Complicate Tanjung Malim Plans
We must protect our local industry, says a minister.
Subscribe to our FREE Newsletter, or Telegram and WhatsApp channels for the latest stories and updates.
Plans by Chinese electric vehicle giant BYD to set up a major assembly plant in Malaysia are now allegedly in limbo, despite earlier expectations that the project would help transform Perak into a regional EV hub.
The company is reportedly re-evaluating its plans for a local assembly (CKD) plant in Tanjung Malim after failing to agree to new conditions set by the Ministry of Investment, Trade and Industry (MITI).
As reported by The Edge today, among the key sticking points are requirements that 80% of vehicles produced be exported, while only 20% can be sold locally and those must be priced above RM200,000.
The conditions were introduced as part of efforts to protect Malaysia’s domestic automotive industry, particularly national carmakers Proton and Perodua, which together support a large local vendor ecosystem and hundreds of thousands of jobs.
The Edqe quoted MITI minister Datuk Seri Johari Abdul Ghani as saying, “We must protect our local industry.”
jilat k’jaan ke? pic.twitter.com/HjA427mvDB
— Izwan🍉🐲 (@lontonggorengz) March 30, 2026
The uncertainty marks a stark contrast from the optimism surrounding the project when it was first announced in 2025.
The BYD plant, planned for KLK TechPark in Tanjung Malim, was expected to be a major catalyst for Malaysia’s EV sector, bringing jobs, technology transfer, and opportunities for local companies to join the global EV supply chain.
The facility was supposed to be BYD’s first assembly plant in Malaysia and part of a broader plan to strengthen its presence in the country ahead of the end of EV tax exemptions.
The project was also tied to Perak’s broader strategy to transform Tanjung Malim into a high-tech automotive and green technology hub.
So who will blink first in what is now looking like a classic policy standoff?
On one side, you’ve got BYD that is aggressive, fast-expanding, and looking to lock down Southeast Asia as its next growth frontier.
On the other, Malaysia, trying to open the door to EV investments without accidentally killing off Proton and Perodua.
With negotiations now stalled, the future of the plant, once seen as a cornerstone investment for the area, remains uncertain.
If the project does not proceed, it could reshape Malaysia’s EV ambitions, as the country tries to balance attracting foreign investment with protecting its existing automotive industry.
Malaysians are already taking to social media to discuss the pulling out rumour.
I love Malaysia
— khalid karim STEMKITA (@khalidkarim) March 29, 2026
No imports of Electric cars costing less than RM250,000 and with big powerful HP.
And there are rumors of BYD pulling out of Malaysia & the TG Malim CKD plant they are building now.
Can anybody verify ?
One Twitter user remarked that BYD already has plants in Thailand and Indonesia so why would they need to deal with Malaysia’s rules?
Another user said there is no evidence to support BYD backing out.
In February, Maybank Investment Bank Research “found KLK Techpark to be highly accessible with Tanjung Malim witnessing a revival, partly boosted by an upcoming BYD assembly plant”, based on a visit.
Generally, the sentiment is that people are unhappy with the rules, with one user slamming the “protectionist policy”.
Ada nampak jugak rumors yang BYD maybe taknak buat kilang kat Malaysia sebab 2 rules mengarut dari MITI.
— ʃɑfɪk (@ichbinSyafiq) March 29, 2026
1: 80% kena export, 20% je boleh jual locally
2: CKD yang jual locally kena jual harga above 200k
Harap2 tak betul. Tapi kalau betul, harap2 cytro MITI boleh jawab. https://t.co/EhVQKvHbpH
Share your thoughts with us via TRP’s Facebook, Twitter, Instagram, or Threads.
