The association said Miti’s policies on automotive investments had been applied consistently to all investors, rejecting the notion that BYD was being treated unfairly.

MACPMA president Chin Jit Sin said the policies prioritised exports, localisation, and integration with the domestic supply chain, which he described as key to strengthening Malaysia’s industrial base and trade competitiveness.

“Automotive investment incentives and manufacturing licences should be aligned with national development objectives, including technology transfer, capability upgrading, and the growth of local component manufacturers.

“Such an approach is critical to sustaining and strengthening the established vendor ecosystem, which has been built through decades of investment and industrial development.

“MACPMA concurs with Miti that these policies are developmental in nature and not protectionist, ensuring that foreign investments complement and strengthen local industry players while creating sustainable value across the automotive value chain,” he said in a statement.

Chin added that the association was committed to working with Miti and other stakeholders to promote the local automotive industry’s inclusive growth, resilience, and long-term competitiveness.

Yesterday, Miti sought to clarify the issue of BYD potentially reevaluating its plans for a local assembly plant for completely knocked-down operations in Tanjung Malim, Perak.

Minister Johari Ghani insisted that his ministry’s EV policy applied equally, and that the conditions imposed on BYD were not unique to the Chinese carmaker.

Johari added that government remained genuinely open to automotive investments from China, pointing out that 14 of the 34 foreign carmakers in the Malaysian market are Chinese.