BYD's Perak Mega-Plant On Hold? MITI Says No Official Word From Chinese EV Giant

If you've been waiting for Chinese electric vehicle (EV) powerhouse BYD to break ground on a massive local manufacturing facility in Perak, you might want to hold your breath.

The Ministry of Investment, Trade and Industry (MITI) has officially revealed that it has yet to receive any formal notification on whether BYD will proceed with its proposed assembly plant in Tanjung Malim, Perak.

Speaking during a Q&A session in the Dewan Negara, MITI Minister Datuk Seri Johari Abdul Ghani clarified that whether the Chinese automotive giant decides to build, defer, or restructure its investment in Malaysia remains entirely up to the company.

Read: 2024 vs 2026 BYD Sealion 7 Malaysia: New Dynamic Variant, 800V Charging & Full Upgrade Guide

"It Is Entirely A Commercial Decision" 

The inquiry was raised in Parliament by Senator Tan Sri Low Kian Chuan, who asked for an update on BYD’s local assembly plans and whether the automaker had met the localization requirements needed for preferential tax rates under the Completely Knocked Down (CKD) scheme.

In response, Johari emphasized that Putrajaya sets clear policy conditions, but cannot force foreign companies to build factories. MITI also confirmed it has not received any formal notification on whether BYD will proceed with the investment under government conditions.

The Dec 31, 2027 Incentive Deadline 

To encourage automakers to set up shop in Malaysia, the government offers full exemptions on import duty, excise duty, and sales tax for locally assembled (CKD) EVs until December 31, 2027.

However, getting those tax cuts isn't just a matter of shipping over pre-made parts and screwing on tires.

Johari warned that eligibility remains strictly tied to compliance with Customs Regulations 1988 and national localization mandates. MITI demands that foreign automakers contribute to:

• Higher domestic value addition
• Development of local parts vendors
• Technology transfer & high-skilled job creation

10 Major Brands Are Already Building Cars In Malaysia 

Liu Xueliang, BYD Vice President and General Manager of Asia Pacific Auto Sales, was spotted visiting Sime Motors’ Inokom assembly plant in Kulim, Kedah, last May.

While questions swirl around BYD's Tanjung Malim plans, Johari highlighted that Malaysia already boasts a robust network of OEM plants and third-party contract assemblers.

Aside from national icons Proton and Perodua, international manufacturers operate assembly hubs nationwide:

"The list demonstrates that Malaysia has a strong automotive assembly and manufacturing base," Johari added, assuring that MITI will continue to ensure full utilization of domestic production capacity.

Read: Why BYD’s Surprise Kedah Plant Visit With Sime Motors Is Huge News For EV Buyers