He said the government’s focus on localisation and high-technology transfer is aimed at creating quality jobs, strengthening technical expertise, and helping small and medium enterprises (SMEs) become global suppliers.

“What we want is a ripple effect, where it spurs local innovation, nurtures engineers and technicians, supports training institutions, and drives broader economic growth.

“This is how true partnerships should work, where the benefits are not just mutual but transformative for the host country’s economy,” he said.

Tengku Zafrul was speaking at the launch of a new sports utility vehicle by Jaecoo, which he described as a key milestone in the growing partnership between Malaysia and Chinese automotive brand Chery.

He noted that as consumers demand higher quality and more innovation, launches like this send a strong message that Malaysia is becoming a strategic hub for global automotive brands seeking to innovate, expand, and compete.

“We welcome Chery’s efforts to strengthen its local presence, whether through higher local content, vendor development, or skills transfer.

“This is a critical step in turning Malaysia into a high-value manufacturing and research and development hub for next-generation mobility,” he said.

For long-term growth, Malaysia is encouraging automotive players, particularly original equipment manufacturers (OEMs), to position the country as a regional hub with a strong focus on export-driven production.

Tengku Zafrul said the automotive sector remains a major pillar of the economy, supporting over 700,000 jobs and contributing more than 4% of Malaysia’s GDP.

“As outlined in the National Automotive Policy 2020, our goal is for the industry to contribute RM104.2 billion to the GDP by 2030.

“To reach that target, we must move up the value chain, mainly by investing in R&D and building capabilities in software, electronics, and sustainable materials. We should not just be focusing on assembly or trading,” he said.