Proton Strengthens Local Supply Chain with RM3.2b in Local Parts

During the launch of the 2026 Proton Saga at MITEC yesterday, MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz emphasised that Proton’s impact now goes well beyond building cars. 

He shared that the company had sourced RM3.2 billion worth of parts from local vendors this year, reflecting its strong commitment to a localised supply chain.

He noted that Proton’s rising sales and larger production output have created meaningful benefits for Malaysian vendors, ensuring that more economic value is retained within the country. 

This momentum, he said, aligns closely with the goals of the New Industrial Master Plan 2030 (NIMP 2030), which aims to position Malaysia as a high-tech and digitally driven nation.

Tengku Zafrul highlighted that Proton is strengthening the country’s automotive foundation through EV platform development, powertrain testing and the localisation of key components. 

Its localisation programme has introduced 18 new technologies and established joint ventures in areas such as fuel pumps, electronic gearshift modules and CVT systems, helping grow vendor capabilities and technical expertise.

He also pointed to Proton’s involvement in national initiatives, including the development of the Automotive High-Tech Valley (AHTV) in Tanjong Malim, the opening of its first EV plant and its collaboration with MARii to establish the National Automotive Test Centre (NATC) housed at Proton’s old Shah Alam facility.

The minister said policies under MITI, including the National Automotive Policy (NAP) and the NIMP 2030, have created a supportive ecosystem that encourages technology upgrades, stronger collaboration between foreign and local companies and greater competitiveness in domestic and regional markets.

He added that the NAP remains the framework guiding Malaysia toward regional leadership in automotive manufacturing, engineering and technology, with priorities that include next generation vehicle (NxGV) development, the expansion of mobility as a service (MaaS) and preparations towards Industry 4.0.

Source: The STAR