Proton To Be Future-ready With Centralised Production In Tanjung Malim

By Zairina Zainudin & Fatin Umairah Abdul Hamid

KUALA LUMPUR, Oct 2 (Bernama) -- Proton Holdings Bhd's decision to centralise its production in Tanjung Malim, Perak is a strategic move to rationalise, reduce costs, improve quality and transition to new technology after investing RM253 million in new stamping lines there.

Hence, the closure of the iconic Shah Alam plant after four decades of operation should be viewed positively. The failure to embrace this transformation would have severely hindered Proton’s ability to achieve the progress it needs to be future-ready.

“Sometimes, bold decisions are essential to pave the way for a stronger, more competitive future,” Electronikar editor and automotive analyst Shamsul Yunos told Bernama when asked about Proton’s decision.

Rather than focusing on where the factory will be or how big it is, the decision by the national carmaker clearly demonstrated its vision to remain competitive by boosting economies of scale, he said.

“It is a timely move aligned with the national carmaker’s long-term plan,” Shamsul said.

Besides, it was not an overnight decision but was brought up in 2024.

It had announced that its Proton Saga production at the Shah Alam plant would be shifted by 2026, supported by a RM253 million investment in new stamping lines to ramp up local parts output and reduce dependence on imports – a critical step in building supply chain resilience.

Proton also invested RM82 million in its electric vehicle (EV) plant located within its manufacturing complex in Automotive Hi-Tech Valley (AHTV) in Tanjong Malim.

The Shah Alam plant is owned by DRB-HICOM, a conglomerate which also holds 50.1 per cent equity interest in Proton while the rest is owned by China-based global automotive group, Zhejiang Geely Holding Group, which operates several brands including Volvo, Lotus, Smart, Geely, Zeekr and Polestar.

Highlighting Proton’s transition to EVs, Shamsul said a key priority is the rationalisation of its product line, including consolidating with the 4-cylinder engine.

It mothballed the ageing 3-cylinder turbo engines when it partnered China’s Geely and adopted its more refined 4-cylinder powertrains.

This transition not only improved performance and fuel efficiency but also enhanced driving comfort, aligning Proton’s models with global standards.

“They centralised with the same (4-cylinder) engine introduced in the X50. So, all other models will be equipped with the same engine family,” he said.

Shamsul pointed out that relocation is not an issue because geographically, Tanjung Malim is quite close to Kuala Lumpur, adding that having carmakers such as Perodua, Nissan, Chery, Proton and BYD in nearby areas would create a strong automotive hub and strengthen the supply chain.

“Therefore, it is better to have an area that is concentrated for the automotive industry, so all the suppliers can move into that area. That will be better in terms of supply chain,” he said.

Moreover, he believed the move would be an advantage in terms of logistics, especially since Tanjong Malim already has a railway line and the government has started studying ways to improve railway usage, including using the East Coast Rail Link (ECRL) to transport cargo.

He noted that Perodua is also exploring the use of the ECRL to move cars to Kuantan and possibly onwards to East Malaysia. 

He said Proton is considering building a spur line into Tanjung Malim, making it easier for parts to be transported directly by train.

The 2.2-hectare Tanjung Malim plant will produce Proton EV e.MAS 7 in its first phase, followed by the e.MAS 6 in the second phase. It has not specified any dates.

The plant has the capacity to produce about 20,000 EV units annually in the first phase, rising to 45,000 a year when fully operational.

The factory is equipped with advanced digital systems, with dedicated EV areas for battery assembly, electrical testing and EV underbody integration.

-- BERNAMA