MITI Breaks Silence: The Truth Behind the '80% Export' Ultimatum

The Malaysian automotive world was sent into a frenzy recently following viral claims that the Ministry of Investment, Trade and Industry (MITI) was "squeezing" global EV giants like BYD with impossible demands. The most shocking rumor? That 80% of all locally made BYD cars must be exported, leaving only a tiny fraction for Malaysians to buy.

Today, MITI has officially broken its silence to set the record straight. It turns out the "80% ultimatum" isn't exactly what it seems. Here is the breakdown of what is actually happening. 

1. The "80% Export" Rule: Is it a Ban on Local Sales?

The Rumor: MITI is forcing BYD to export 80% of its cars just to protect Proton and Perodua. 

The Reality: While it is true that BYD’s domestic sales are currently capped at 10,000 units per year (which aligns with 20% of their projected production), MITI clarifies this isn't a "restriction" on total production. 

Instead, it is a "Pro-Export" condition. Malaysia wants to be a global production hub, not just a place where foreign companies sell their surplus. By focusing on exports, these companies help Malaysia’s trade balance and ensure the factory stays busy enough to support local workers.

These conditions are non-discriminatory and apply to all new high-volume automotive assembly projects in Malaysia starting September 2025.

2. The RM100k "Price Floor" Twist

The Rumor: You won't be able to buy a cheap EV because the government is forcing prices above RM200,000. 

The Reality: MITI confirmed that for locally assembled (CKD) vehicles, the minimum price is actually RM100,000.

The higher RM250,000 floor only applies to cars imported fully built (CBU) from overseas. The goal? To encourage companies to build cars here if they want to sell them at lower prices to Malaysians.

3. No, the BYD Shark Isn't Banned

The Rumor: MITI has banned new electric pickups like the BYD Shark or GWM Cannon to stop them from competing with local brands. 

The Reality: There is no ban. MITI clarified that these "lifestyle" pickups are simply subject to the same rules as everyone else: they need to meet local assembly and part requirements. If they meet the standards, they can hit the road.

4. More Than Just a Factory

The Rumor: MITI is making it too "difficult" for investors by demanding too much. 

The Reality: Malaysia is raising the bar to ensure local manufacturing moves toward sustainable, higher-value market segments. To qualify as a high value-added manufacturing activity, the assembly process must now include in-country body shop, paint, and trim operations.

As stated in the statement, “Fully finished Painted Body Shell (PBS) are not recognised as eligible content for the local value-add assessment and must be sourced domestically. However, BYD remains free to source components globally.”

5. Pawning the Future? MITI Responds to Protectionism Claims

The Rumor: Critics claim MITI is "pawning the future" of the industry to benefit a few established local players rather than promoting a healthy, open ecosystem.

The Reality: MITI strongly denies this, stating their approach is "developmental," not protectionist.

The Ministry argues that without clear export commitments, manufacturers cannot achieve the "economies of scale" needed for deep localization. The goal is to move Malaysia toward "economic complexity" and genuine high-value manufacturing, which benefits the entire industry in the long run, not just a few brands.

The Bottom Line: Protectionism or Progress?

MITI maintains that these aren't "barriers," but a framework for "meaningful participation". With 700,000 Malaysians employed in the automotive sector, the government is playing hardball to ensure that when a global giant like BYD comes to town, they bring real technology and real jobs, not just a showroom.

For the average buyer, this means the dream of a "budget" high-tech EV is still alive, it just has to be truly Made-in-Malaysia first.

Read the official statement here: MITI

Read: Farewell to Budget High-Tech EV? MITI’s Terms Could Force BYD Out of Tanjung Malim

Read: BYD Confirms Malaysia CKD Production Plans