Malaysia Protects Local Brands, Requires BYD to Export 80% of Production

The Malaysian government, through the Ministry of Investment, Trade, and Industry (Miti), has affirmed that the policy applied to BYD aims to protect the local automotive industry. One way is by limiting domestic sales and encouraging a large portion for export. According to The Edge, 80% of production from the assembly plant in Malaysia must be allocated for export. This means only about 20% may be sold in the domestic market. “This condition ensures that local assembly focuses on high-value segments, while preserving market space for national players such as Proton and Perodua,” Miti stated. The policy also avoids direct competition in the affordable price segment. On the other hand, the large export obligation is directed towards making Malaysia a regional production base. The government wants foreign investment not only oriented towards the domestic market but also to strengthen its position as an electric vehicle export hub. BYD itself has held a manufacturing licence since September 2025 to assemble electric vehicles and plug-in hybrids. However, with these quite strict conditions, reports have emerged that the Chinese manufacturer is still reviewing its investment plans. Miti emphasised that this policy applies not only to BYD but to all new investors in the automotive sector. The goal is to create a sustainable industry without sacrificing local players.