Malaysia’s EV Ambitions Accelerate: Tanjong Malim Poised to Become a Regional Automotive Powerhouse
Nearly 26,000 electric vehicles (EVs) registered in the first seven months of 2025 – a figure rapidly approaching the total for all of 2024 – signals a dramatic shift in Malaysia’s automotive landscape. At the heart of this transformation lies the Automotive High Technology Valley (AHTV) in Tanjong Malim, a city rapidly evolving from a regional hub to a potential Southeast Asian EV epicenter. The recent opening of Proton’s first EV assembly plant isn’t just a milestone for the national carmaker; it’s a strategic move positioning Malaysia to capitalize on the burgeoning global demand for electric mobility.
The AHTV Vision: Beyond Assembly
The AHTV isn’t simply about assembling cars; it’s a comprehensive ecosystem designed to encompass the entire EV value chain. Announced in 2022, the initiative aims to attract research and development facilities, automotive suppliers, and original equipment manufacturers (OEMs), ultimately generating an estimated RM32 billion in economic value and 160,000 jobs by 2030. This ambitious plan goes beyond simply reducing reliance on imported vehicles. It’s about building a self-sufficient, technologically advanced automotive industry within Malaysia.
Infrastructure Investments Fuel Growth
Recognizing the logistical challenges of a large-scale automotive hub, the Malaysian government is investing heavily in supporting infrastructure. A crucial component is the planned railway spur line connecting AHTV to the Keretapi Tanah Melayu (KTM) network and, subsequently, to Port Klang – the world’s 10th busiest port. Estimated to cost between RM200 million and RM250 million, this connection will streamline the transport of raw materials and finished vehicles, reducing costs and improving efficiency. This strategic investment underscores the government’s commitment to making AHTV a truly competitive location for automotive manufacturing.
Proton’s EV Push and the Rise of the e.MAS
Proton’s new plant, with an initial investment of RM47 million and a capacity of 20,000 vehicles per year (expandable to 45,000), marks a pivotal moment for the company. The locally assembled e.MAS 7, already proving popular with nearly 5,000 units sold in the first half of 2025, is a key component of this strategy. The upcoming e.MAS 5, positioned as a more affordable option, directly addresses the need for accessible EVs in the Malaysian market. This dual-pronged approach – offering both premium and budget-friendly models – is crucial for accelerating EV adoption.
BYD’s Entry: A Vote of Confidence
The swift approval process for Chinese EV giant BYD to establish an assembly line at AHTV – securing all necessary approvals within a month – speaks volumes about the attractiveness of the location. BYD’s investment, slated to begin operations by mid-2026, further validates the AHTV vision and signals a growing influx of foreign investment. This isn’t just about attracting capital; it’s about technology transfer and the development of a skilled Malaysian workforce. The government’s strategy of consolidating automotive approvals under one roof at AHTV is clearly paying dividends, eliminating bureaucratic hurdles and fostering a business-friendly environment.
The Geely Factor and Talent Development
The partnership with China’s Zhejiang Geely Holding Group, which holds a 49.9% stake in Proton, is central to Malaysia’s EV ambitions. Prime Minister Anwar Ibrahim has explicitly called upon Geely to expand its investments beyond manufacturing, establishing a center of excellence for training and education. This emphasis on talent development is critical. Thirty Proton staff members have already undergone training in China to support EV production, demonstrating a proactive approach to building a skilled workforce capable of sustaining long-term growth. This focus on human capital is arguably the most important factor in ensuring AHTV’s success.
Looking Ahead: Challenges and Opportunities
While the momentum is undeniable, challenges remain. EV adoption in Malaysia currently stands at just under 3%, highlighting the need for continued incentives and infrastructure development. Competition from established automotive players and the evolving global EV market will also require constant innovation and adaptation. However, the strategic location of AHTV, coupled with government support and a growing ecosystem of suppliers and manufacturers, positions Malaysia for significant growth in the EV sector. The success of AHTV will not only transform Tanjong Malim but also solidify Malaysia’s role as a key player in the regional automotive industry.
What are your predictions for the future of the AHTV and Malaysia’s EV industry? Share your thoughts in the comments below!
