The Malaysian government is set to review the conditions imposed on electric vehicle (EV) companies looking to establish local assembly operations, following concerns that current requirements may be too restrictive. As reported by Bernama, Prime Minister Anwar Ibrahim confirmed that the issue will be discussed with the Ministry of Investment, Trade and Industry (MITI), as scrutiny builds over policies affecting completely knocked down (CKD) EV projects.
The move reflects mounting feedback from industry stakeholders, who argue that certain requirements may be limiting Malaysia’s ability to attract and retain EV investments. The upcoming discussions with MITI are expected to address these concerns while balancing national industrial goals.
Triggered By Industry Concerns
The policy review comes amid reports that BYD is reconsidering its plans to set up a CKD assembly facility in Tanjung Malim, Perak. As previously reported, the automaker has reportedly raised concerns over requirements such as export targets and pricing thresholds, which have made it difficult to proceed with its investment. It is also suggested that construction of the proposed plant may have been halted due to these challenges.
In its response, MITI clarified that its CKD EV policies apply to all new entrants from September 2025 and not just BYD, except those using existing local assembly facilities, while correcting the minimum on-the-road (OTR) price to RM100,000 from the previously reported RM200,000. The ministry said the price floor is intended to prioritise higher-value segments while preserving space for national players like Proton and Perodua, and confirmed that BYD must meet conditions including 10,000 units for domestic sales, representing 20% of capacity, with the remaining 80% allocated for export.
Perak Urges Reassessment And Policy Clarity
Calls for a policy reassessment have also emerged from the Perak state government. In a statement, state executive councillor Loh Sze Yee warned that overly stringent conditions could undermine foreign investor confidence and negatively impact Malaysia’s investment climate.
He also highlighted concerns over policy consistency, noting that new requirements were allegedly introduced after a formal application had already been submitted. Loh said such changes, particularly if implemented without sufficient transparency or clarity, could affect trust and continuity for investors planning long-term projects in the country.
At the same time, the Perak government reiterated its position that any form of BYD’s manufacturing presence in Malaysia should remain within the state. The proposed facility is slated for the KL-Kepong High-Tech Park in Tanjung Malim, and the state has emphasised that existing agreements and development commitments should be upheld.
