The Malaysian government is set to review the conditions imposed on electric vehicle (EV) companies looking to establish local assembly in the country. This comes following recent concerns that current policies on CKD EVs are seen to be too restrictive, which makes it hard for brands to move forward.
It was reported last month that BYD is reconsidering its plans to set up its CKD operations in Tanjung Malim allegedly due to its high export requirement and high floor price for CKD EVs.
According to a report by Bernama, Prime Minister Anwar Ibrahim said the issue of allegedly strict conditions on EV players will be discussed with the Ministry of Investment, Trade and Industry (MITI).
This comes shortly after Perak Tourism, Industry, Investment and Corridor Development Committee chairman Loh Sze Yee called for a reassessment of the Federal Government’s policies. He warned that overly stringent requirements could undermine foreign investor confidence and hurt Malaysia’s investment climate.
It was reported that the construction of BYD’s assembly plant in Tanjung Malim has been halted, allegedly due to the company’s inability to meet the new requirements introduced by MITI.
The Perak exco said it is regrettable that after a formal application was submitted by the investor, a new policy framework was suddenly introduced without transparency and clarity, which undermines the trust and continuity of existing plans. He also urged that the state government remains a firm position that any form of BYD investment and production in Malaysia should continue to be carried out in Perak as part of its existing agreements and development commitments.
According to MITI’s clarification issued on 31st March, BYD was not singled out and its existing policies applies to any new CKD entrant from September 2025 except for those who are using existing local assembly facilities. It also clarified that the minimum on-the-road (OTR) price for CKD EV is RM100,000 and not RM200,000 which was reported earlier.
MITI added that the minimum RM100,000 price for BYD’s CKD vehicles sold domestically is to ensure local assembly focuses on higher-value segments while preserving the market space for national players such as Proton and Perodua while still offering affordable EV solutions.
However, they did confirmed that the mandated conditions to BYD include setting approved sales volume of 10,000 units for the domestic market which makes up 20% of BYD’s total production capacity. This means, 80% would have to be exported.
In 2025 alone, there were 14,407 BYD EVs registered in Malaysia.
MITI said this “pro-export” condition is aimed at ensuring that investment contributes to Malaysia’s trade balance and global supply chain integration. It is not a restriction on total production but a strategic measure to encourage export orientation.
[ SOURCE, IMAGE SOURCE ]
