Honda Suppliers Club Supports MITI’s Development-Driven EV Policy

KUALA LUMPUR, April 3 (Bernama) -- The measures taken by the Ministry of Investment, Trade and Industry (MITI) regarding BYD’s proposed investment underscore a calibrated approach to balancing foreign direct investment in the electric vehicle (EV) manufacturing sector with national interests.

Honda Malaysia Suppliers Club president Kam Cheong Loong said in a statement today that the initiative reflects alignment of priorities among public, private and international stakeholders.

“The association views the government’s decision as one that reaffirms a policy of prudence and deliberation in such matters,” he said. 

It was reported recently that Chinese EV manufacturer BYD is re-evaluating its plans for a completely knocked down (CKD) assembly plant in Tanjung Malim, Perak.

MITI has denied that it has imposed unfavourable or discriminatory conditions on car makers, adding that the intention was to ensure local assembly capacity moves toward sustainable, higher-value market segments and to avoid displacement of the established vendor ecosystem.

MITI clarified that BYD is not being singled out; the same conditions apply to any new CKD entrant.

Kam noted the importance of both national and non-national automakers reviewing their procurement frameworks to create strong vendor relationships and a robust supply sector across all categories.

“Our association supports automakers who sincerely work in line with MITI’s policies, such as Honda Malaysia, which is committed to continuously expanding the localisation for growth in our vendor ecosystem. 

“In doing so, our association will continue to engage with all stakeholders to ensure continued growth and sustainability in our sector,” he said. 

-- BERNAMA