KUALA LUMPUR – The Investment, Trade and Industry Ministry (MITI) has moved to address growing claims circulating on social media regarding the conditions attached to BYD’s Manufacturing License, stressing that the policies are consistent, non-discriminatory and designed to support long-term industry growth.
In a media statement shared on its Facebook page , MITI said BYD Automotive Malaysia Sdn Bhd was granted an interim Manufacturing License on Sept 29, 2025, to assemble energy efficient vehicles, including electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs), at Tanjung Malim, Perak.
“The license is granted on the basis of an export-oriented production profile, where the majority of output is destined for international markets to leverage Malaysia’s FTAs and regional supply chains,” the ministry said.
Addressing claims that the imposed conditions were unfavourable, MITI clarified that similar requirements apply to all new automotive investments.
“These conditions apply to all new CKD investments, not just BYD,” Miti stressed.
On allegations that 80% of BYD’s production must be exported, MITI explained that domestic sales are capped at 10,000 units annually, equivalent to 20% of total production capacity.
“This is not a restriction but a strategy to strengthen Malaysia’s global supply chain integration,” it added.
The ministry also refuted claims that locally sold vehicles must be priced above RM200,000, stating that “the claim is inaccurate” and that “the minimum domestic OTR (on-the-road) price is RM100,000”
In response to concerns over EV affordability, MITI noted that earlier measures to lower price thresholds were a deliberate, time-limited measure designed to stimulate consumer demand and build EV familiarity in the market.
It also added that, local manufacturing remains the long-term strategy and policy review is still ongoing.
MITI also dismissed claims that it had banned the import of new pickup truck models, clarifying that “there is no ban”.
“Imports are allowed under Approved Permit (AP) quotas. CKD (Completely Knock Down) localisation requirements apply,” it explained further.
On accusations that the government is favouring established local players, the ministry maintained that MITI’s approach is not protectionist but developmental, aimed at encouraging high-value investments and strengthening the domestic automotive ecosystem.
Reaffirming Malaysia’s openness to foreign investment, MITI said its policy framework is not a barrier to entry, it is a framework for meaningful, high-value participation from foreign investors.
“These policies are not barriers but frameworks for meaningful, high-value participation, transitioning Malaysia towards advanced manufacturing,” it explained.
The ministry added that Malaysia remains committed to positioning itself as a regional hub for next-generation vehicle production, supported by a strong vendor ecosystem, skilled workforce and strategic access to regional markets.
Earlier, The Edge Malaysia reported that BYD is reconsidering its plans to set up a CKD assembly plant in Tanjung Malim, Perak after failing to agree with the terms set by MITI. – March 31, 2026