Malacca is turning into one of Malaysia’s most important centres for electric vehicle (EV) production. Thanks to big investments, government support, and a growing focus on clean energy, the state is playing a key role in Malaysia’s National Energy Transition Roadmap (NETR).
According to the ASEAN Briefing, two large EV projects are leading the way in Malacca.
Fieldman EV Sdn Bhd is building Malaysia’s first electric vehicle assembly plant in Jasin’s Elkay Lipat Kajang Industrial Area. The project is worth 1 billion ringgit (about AUD 313 million) and is in partnership with Changan Automobile of China. Once completed in 2026, the factory will produce right-hand-drive EVs for Malaysia and other ASEAN countries. Around 5,000 jobs are expected to be created.
Another big player, EP Manufacturing Berhad (EPMB), has opened its EV plant in HICOM Pegoh Industrial Park. Backed by Chinese automakers Great Wall Motor (GWM) and BAIC, the plant has already built over 1,000 vehicles and aims to produce 30,000 per year. It’s also set to support 1,000 new jobs.
Strong Government Support
The Malaysian government is offering big support to help the EV industry grow. Through groups like the Malaysian Investment Development Authority (MIDA) and the Green Technology and Climate Change Corporation (MGTC), the government is giving out tax breaks and other benefits.
Companies can get income tax relief, 100 per cent tax exemption for up to five years under the Green Investment Tax Allowance (GITA), and zero import duties on EVs until the end of 2025. Malacca is also planning to install 300 EV charging stations by 2026.
Skilled Workers and Smart Locations
Malacca is preparing for more EV companies by training local workers. Schools like UTeM and Malacca Polytechnic are offering classes in EV engineering and technology. This will help supply skilled workers to both car makers and parts suppliers.
Compared to other states like Selangor or Kedah, Malacca offers lower land prices and less traffic, making it a good place for EV factories.
“Malacca gives investors a cost-effective and friendly base for manufacturing,” the ASEAN Briefing report noted.
Ready for ASEAN Exports
Malacca isn’t just serving Malaysia — it’s ready to export EVs to the rest of Southeast Asia. With access to Tanjung Bruas Port and improved transport links, it’s easy to move cars and parts to nearby countries.
Thanks to trade deals like the ASEAN Free Trade Area (AFTA) and the Regional Comprehensive Economic Partnership (RCEP), EVs and parts made in Malacca can enter other ASEAN markets with lower tariffs.
Once mainly known for history and tourism, Malacca is now becoming a modern green manufacturing centre. With real investments, jobs, and government help in place, Malacca is ready to lead the way in electric vehicles across Malaysia and beyond.
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