No official decision yet on BYD’s Tg Malim plant – MITI

Malaysian investment, trade and industry minister (MITI) Datuk Seri Johari Abdul Ghani has said today in the Dewan Negara that the ministry has not been formally notified yet if BYD will proceed with its Tanjong Malim plant plans, Bernama reports.

Senator Tan Sri Low Kian Chuan was seeking an update on BYD’s proposed plant as an EV maker that has met the localisation requirements to qualify for preferential tax treatment under the completely-knocked-down (CKD) scheme.

“Any decision to proceed with, defer or revise its investment plans is a commercial decision for the company,” Johari replied, adding that the government is already encouraging the local assembly of EVs by offering import duty, excise duty and sales tax exemptions until end-2027.

He said, however, that eligibility for these incentives remain subject to compliance with the Customs Regulations 1988 and other conditions imposed by the government.

“The government will continue to monitor the utilisation of existing production capacity and ensure that every new investment contributes meaningfully to higher domestic value-added, the development of local vendors, technology transfer, the creation of high-skilled jobs and stronger export activities,” Johari said.

To recap, MITI’s new fully-imported (CBU) EV regulations mean that BYD’s current all-CBU line-up will either be outlawed because they don’t make at least 180 kW (245 PS), or become expensive (Seal and Sealion 7) because the cost, insurance and freight (CIF) value needs to be RM200k or more.

The way around this is local assembly (CKD), but because BYD was looking at setting up its own new factory, new regulations mandate a RM100k floor price, 80% of production to be exported and a paint shop, which is a costly element in a car factory and a sign of ‘serious work’ being done there, so to say.

So how? Deputy MITI minister Sim Tze Tzin revealed a ‘solution’ in May to The Edge: “If (carmakers) want to price EVs between RM100,000 and RM200,000, they can work together with contract manufacturers to manufacture here” – as MG, Xpeng and GWM are doing with EPMB in Melaka, and TQ Wuling with Tan Chong.

Hardly a week passed before BYD VP and GM of the carmaker’s Asia Pacific Auto Sales Division Liu Xueliang visited Sime Motors’ Inokom plant in Kulim, Kedah, triggering speculation that BYD could partner up with its Malaysian distributor for contract assembly instead. Is Tanjong Malim off the table for BYD?

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