Traffic on a highway in Kuala Lumpur, Malaysia. Photo by Pexels
Malaysia remains open to automotive investments from China, with its policy framework designed to facilitate high-value participation rather than restrict market entry, its trade ministry said.
Johari Abdul Ghani, Malaysia’s Minister of Investment, Trade and Industry, said Chinese automotive brands have a major presence in Malaysia. As of December 2025, 14 out of 34 foreign brands in the market are from China, including BYD, Chery, Jaecoo, Jetour, Haval, Wey, MG and Volvo.
He stated that Malaysia’s automotive policies are developmental in nature, aimed at moving the country towards advanced manufacturing rather than limiting competition.
The country aims to position itself as a regional production and export hub for next-generation vehicles. The Southeast Asian nation has more than 592 specialized automotive vendors and a skilled technical workforce capable of supporting world-class electric vehicle manufacturing.
He added that Malaysia stands ready to partner with manufacturers that come not only to serve the domestic market but also to build for global markets, and that its policy framework is designed to enable and accelerate that ambition.
Global players, including Mercedes-Benz, Volvo, and Stellantis, have chosen Malaysia as a regional assembly base, while Chery has begun developing its manufacturing facility in the Beringin High-Tech Automotive Valley.
Malaysia’s central location within ASEAN provides access to a regional market of more than 600 million consumers, further supported by 17 free trade agreements that open global markets to locally assembled vehicles.
Malaysia’s policies aim to ensure that all investments create value, transfer technology, and provide sustainable local employment opportunities, the minister said.
