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Business Times
17-07-2025
- Automotive
- Business Times
Chinese EV brands rule the road in Malaysia
[KUALA LUMPUR] Chinese electric vehicle (EV) brands have quietly overtaken European, American and even local competitors to dominate Malaysia's emerging EV market, riding a wave of shifting consumer perception, favourable pricing and aggressive regional investment. In the first six months of 2025, Chinese EVs accounted for nearly 50 per cent of all new electric cars registered in Malaysia, with close to 8,400 units sold out of a total 17,251, indicated Road Transport Department data. The clear front-runner is China's BYD, which alone delivered 5,434 units, outpacing home-grown Proton's 4,043 cars and US-based Tesla's 2,399 vehicles. BYD's early advantage stems from having introduced its first EV, the Atto 3, in 2022. That marks a dramatic reversal from just four years ago, when only two Chinese-made EVs were registered in the country, then still a stronghold of premium European marques such as Porsche and Mini. Now, German EVs have fallen to just 10 per cent of market share. 'This level of adoption wasn't even on the radar a few years back,' said Jeremy Khoo, a car sales agent in Selangor. 'People used to think EVs were for the rich but now they're realising you can get a stylish, high-tech EV at a price that rivals conventional cars.' Although imported EVs in Malaysia are still capped at a selling price of above RM100,000 (S$30,270), there are plenty of EV choices that are priced below RM130,000, for instance, Neta V, BYD Dolphin and MG ZS EV. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up With internal combustion engine (ICE) models such as the Honda City or Mazda CX-3 now priced similarly, buyers are increasingly willing to give EVs a try, he added. 'Malaysians are pragmatic buyers… They want value, reliability and affordability. Right now, Chinese EVs are checking all the boxes,' Khoo told The Business Times. Ding Yuqian, head of China autos research at HSBC, said while China exports both ICE and EV models to the Asean region, including Malaysia, its EV products are proving far more competitive. She anticipates that EVs will constitute the majority of Chinese automakers' overseas sales mix by the end of this decade. Fuel subsidy removal accelerates EV demand RON95 petrol, which is widely used by most Malaysia registered vehicles, is currently priced at RM2.05 per litre, roughly 35.5 per cent below the unsubsidised petrol of RM3.18. PHOTO: BT FILE A broader policy shift is also nudging consumers towards EVs. The government is planning to remove the blanket subsidy for RON95 petrol this year, continuing fuel support for only lower-income groups. RON95 fuel, which is widely used by most Malaysia registered vehicles, is currently priced at RM2.05 per litre, roughly 35.5 per cent below the unsubsidised RON97 petrol (RM3.18). Macquarie Equity Research earlier estimated that if RON95 prices rise to RM3.25 per litre, EV users could save as much as 35 per cent in fuel costs. The policy shift follows the government's move last year to eliminate diesel subsidies, which resulted in a 15 per cent drop in diesel vehicle sales, said Patrick Ziechmann, PwC Asean automotive lead. 'We anticipate that the removal of (the RON95) subsidy could result in a similar impact on ICE vehicles sales. This could lead to a positive effect for EVs,' he told BT. Still, challenges remain. Range anxiety and insufficient charging infrastructure continue to deter some buyers, though the number of charging stations is steadily rising nationwide. Double down on Malaysia Proton 7 has become Malaysia's fastest-selling EV, with more than 4,000 units already registered. PHOTO: PROTON Chinese carmakers are not just selling into Malaysia, they are also building in it. To stay competitive when tax exemptions on Completely Built-Up (CBU) EVs eventually lapse in 2027, Chinese carmakers are making big local bets. Chery is investing RM2.2 billion in a Smart Auto Industrial Park in Selangor. This will be its first production hub in South-east Asia, with plans to produce ICE, plug-in hybrid and battery EVs. Vehicles produced at the site will also be exported to neighbouring markets, with Vietnam already identified as a key destination. Geely, which acquired a 49.1 per cent stake in national carmaker Proton in 2017, has partnered with DRB-Hicom to build the Automotive Hi-Tech Valley in Tanjong Malim, Perak. The development is envisioned as a regional EV manufacturing hub. Proton has already broken ground on an EV plant there, which will roll out the 7 – Malaysia's first national electric car. Officially launched in December 2024, the Proton 7 has become Malaysia's fastest-selling EV, with more than 4,000 units already registered in the first six months of 2025. Priced from RM105,800, the model offers both affordability and familiarity, making it a popular choice for Malaysian families transitioning away from ICE vehicles. Meanwhile, Leapmotor has teamed up with Stellantis to begin local assembly of EVs at its Gurun plant in Kedah. The initiative, backed by a RM24 million investment, will start production of Leapmotor's C10 EV by year-end. 'Chinese brands, led by BYD, have already captured around half of the Asean EV market,' said HSBC's Ding. Given rising trade tensions between China and the US and Europe, she noted, emerging markets such as South-east Asia are the most promising overseas opportunities for Chinese carmakers. Regional players join the race China's rise in Malaysia has stirred interest from other Asian giants. South Korea's Hyundai is shifting from a distributor-led model to a direct presence in Malaysia by establishing a new subsidiary, Hyundai Motor Malaysia. This new subsidiary will begin local assembly at the Inokom Corporation facility in Kedah in the third quarter of 2025. The facility is slated to produce up to seven models over the next five years, initially focusing on ICE and hybrid variants, with future plans to expand into EVs. This strategic move by Hyundai reflects a broader effort to deepen its regional manufacturing footprint. Sweden-based Volvo Cars, via its Malaysia subsidiary Volvo Car Malaysia, in 2022 announced its plan to produce the first assembled EV at its manufacturing facility in Selangor, which in line with the company's plan for going into full electrification by year 2030. Meanwhile, German-based Mercedes-Benz in 2023 launched its first locally assembled EV in Malaysia, the EQS 500 4Matic sedan, produced at its Pekan, Pahang plant. Market still in early days While EVs are gaining traction in Malaysia, they still make up a small portion of the overall automotive market. In the first half of 2025, EVs accounted for around 4.3 per cent of the 396,747 vehicle registrations. The growth is significant compared with last year's EV registration of 21,789. That 2024 figure itself represented nearly 64 per cent jump from the 13,301 units registered in 2023, indicated Road Transport Department data. However, Malaysia's EV adoption still lagged behind the regional peers. EVs make up 25 per cent of new car sales in Vietnam, 23 per cent in Thailand, 15 per cent in Indonesia, and 82 per cent in Singapore. Even so, market observers believe there is potential still. EV sales accelerated from less than 300 units registered in 2021 to more than 21,000 registered EVs in 2024. This rapid increase aligns with ambitious government targets set out in the National Energy Transition Roadmap, which aims for EVs to make up 15 per cent of new car sales by 2030 and 80 per cent by 2050. Expanding China's EVs in South-east Asia Tesla's experience centre in Kuala Lumpur. As at the first half of 2025, the US-based EV brand holds the third-highest number of registered EVs in Malaysia. PHOTO: GOH SENG CHONG The surge of Chinese EVs is not just a local trend in Malaysia, but a significant force reshaping the global automotive landscape, said market observers. As HSBC's Ding observed, Chinese carmakers are increasingly leveraging Asean nations not only as key markets but also as integral components of their global supply chains. This involves substantial investments in battery factories, sophisticated logistics networks, and advanced research and development hubs across the region. PwC's Ziechmann said Asean is a naturally attractive export market for Chinese automotive companies due to its proximity, efficient transportation links and historical ties with countries such as Malaysia and Singapore. Furthermore, the region offers compelling growth opportunities. Automotive markets are expanding in Vietnam, the Philippines and Singapore, while Indonesia and Thailand are poised for renewed growth in the coming years, particularly within the EV segment. The growing presence of Chinese EV manufacturers in Malaysia and across the Asean automotive market has affected the traditional big players, said Ziechmann. 'We're already seeing how new Chinese EV models are reshaping the competitive landscape,' he said, noting that in 2024 alone, Japanese original equipment manufacturers (OEMs) lost around 4 per cent market share across the region, with most of that shift going to Chinese brands. In Thailand, BYD and MG entered the top 10 best-selling OEMs, surpassing well-established names such as Ford, Mazda and Nissan. In Singapore, BYD was the best-selling EV brand in 2024. In Indonesia, Wuling and BYD each secured 4 per cent of total market share, ranking ninth and 10th respectively.
The Sun
10-07-2025
- Business
- The Sun
Company director charged for fake SIRIM stickers on retreaded tyres
SEREMBAN: A company director and his firm faced charges in the Sessions Court for allegedly using counterfeit SIRIM certification stickers on retreaded tyres. Cerico Retread Sdn Bhd and its director, Khoo Chai Kee, 65, denied the charges under the Trade Descriptions Act 2011. The case involves 80 retreaded tyres of various brands and sizes found with unauthorised SIRIM MS 224:2005 logo stickers. The offence reportedly occurred at the company's premises in Taman Perindustrian Bukit Palong Lukut, Port Dickson, on February 13. Khoo, charged under Section 21(b) of the Act, risks a maximum fine of RM200,000 or three years' imprisonment if convicted. The company, charged under Section 21(a), could face fines up to RM500,000. Deputy Public Prosecutor Muhammad Hakiim Izani requested RM20,000 bail and the surrender of Khoo's passport. Defence lawyers Raswanti Nagaindren and Suwaathee Nakkeeran argued for lower bail due to Khoo's age. The court set bail at RM8,000 and scheduled the next mention for August 28. – Bernama
Asia News Network
08-07-2025
- Business
- Asia News Network
ASEAN's balancing act begins: US tariffs, China and Myanmar top agenda as Kuala Lumpur talks open
July 8, 2025 KUALA LUMPUR – As the international geopolitical and economic landscape grows increasingly uncertain, the 58th Asean Foreign Ministers Meeting (AMM) and related meetings which open today is set to play a key role. A highlight will be a dialogue session between Asean and the United States on Thursday, the day after US President Donald Trump's 90-day pause on tariffs ends. Trump's latest warning to slap additional tariffs on countries aligning themselves with BRICS will be a key discussion point. ALSO READ: Papua New Guinea's Asean bid faces a long road On Sunday, the US president warned that any country that aligned itself with 'anti-American policies' of the BRICS economic bloc will face an additional 10% tariff. Indonesia is the sole Asean nation that is a full BRICS member, with Malaysia, Thailand and Vietnam having joined as partner countries last October. Universiti Malaya International and Strategic Studies Department Assoc Prof Dr Khoo Ying Hooi said the AMM will see Asean trying to hold itself together while navigating a messy geopolitical environment with Trump back in charge. 'The Asean-US dialogue will be closely watched with Trump's approach tending to be more transactional and less predictable,' she said. Amid the ongoing geopolitical rivalry between global superpowers, she expected China to likely use its presence at the AMM to present itself as a more stable and reliable partner. At the East Asia Summit and the Asean Regional Forum on Friday, Assoc Prof Khoo said we will probably see US-China rivalry play out more openly. 'Asean's responses might start to split, depending on each country's own alignment and economic interests,' she pointed out. Assoc Prof Khoo said the big question was whether Asean could take a stronger and more strategic position on tough issues involving Myanmar, the South China Sea and on economic resilience. 'In short, this AMM will really show us where Asean stands not just in terms of unity, but on how it is adjusting to a much more volatile and transactional global environment, especially with the US shifting gears again,' she added. The Myanmar issue will be high on the AMM agenda, given the heightened expectations on Asean with the civil war there ongoing for four years without meaningful progress, she said. 'There is only so much the region can keep repeating statements without follow-through,' she added. Asia West East Centre director and co-founder Abdolreza Alami said Trump's proposed tariffs on Malaysia, Indonesia, Thailand, Vietnam, Cambodia and the Philippines poses a significant threat to Asean's export-driven economies. As such, he said US-Asean dialogue will be a vital platform for negotiations with American officials to mitigate the impact of the tariffs. Abdolreza said the region aimed to maintain neutrality and Asean centrality, and the separate dialogues with US and China will focus on balancing relations with both superpowers. 'The intensifying US-China competition, particularly in the South China Sea and technology, places Asean in a delicate position,' he added. Julia Roknifard, senior lecturer at Taylor's University School of Law and Governance, said US tariffs will be a major point of discussion but Asean as a regional grouping 'held collective weight to address the tariff challenge.' 'Each country will share its response to the US tariff policy and they will see how Asean countries can align themselves,' she added. Roknifard expected the Myanmar crisis to be raised during the AMM with Malaysia heavily pushing for progress on that front. 'While the ability of Asean members to resolve the crisis is limited, they still want to keep the issue in discussion, in the hopes that keeping it high on the agenda will eventually have some effect on the Myanmar government,' she added. Prime Minister Datuk Seri Anwar Ibrahim is scheduled to officiate the official AMM opening ceremony tomorrow upon his return from Rio de Janeiro, Brazil, where he addressed the BRICS Summit. The four-day meet will include the South-East Asia Nuclear Weapon-Free Zone Commission meeting, 15th East Asia Summit Foreign Ministers' Meeting and the 32nd Asean Regional Forum. More than 10 Asean Post-Ministerial Conferences will be held, including meetings with China, Australia, Canada, India, New Zealand, Japan, Russia, South Korea, United States, United Kingdom and the European Union.
The Star
08-07-2025
- Business
- The Star
Asean balancing act begins
US tariffs, China and Myanmar to top agenda as KL talks open KUALA LUMPUR: As the international geopolitical and economic landscape grows increasingly uncertain, the 58th Asean Foreign Ministers Meeting (AMM) and related meetings which open today is set to play a key role. A highlight will be a dialogue session between Asean and the United States on Thursday, the day after US President Donald Trump's 90-day pause on tariffs ends. Trump's latest warning to slap additional tariffs on countries aligning themselves with BRICS will be a key discussion point. ALSO READ: Papua New Guinea's Asean bid faces a long road On Sunday, the US president warned that any country that aligned itself with 'anti-American policies' of the BRICS economic bloc will face an additional 10% tariff. Indonesia is the sole Asean nation that is a full BRICS member, with Malaysia, Thailand and Vietnam having joined as partner countries last October. Universiti Malaya International and Strategic Studies Department Assoc Prof Dr Khoo Ying Hooi said the AMM will see Asean trying to hold itself together while navigating a messy geopolitical environment with Trump back in charge. 'The Asean-US dialogue will be closely watched with Trump's approach tending to be more transactional and less predictable,' she said. Amid the ongoing geopolitical rivalry between global superpowers, she expected China to likely use its presence at the AMM to present itself as a more stable and reliable partner. At the East Asia Summit and the Asean Regional Forum on Friday, Assoc Prof Khoo said we will probably see US-China rivalry play out more openly. 'Asean's responses might start to split, depending on each country's own alignment and economic interests,' she pointed out. Assoc Prof Khoo said the big question was whether Asean could take a stronger and more strategic position on tough issues involving Myanmar, the South China Sea and on economic resilience. 'In short, this AMM will really show us where Asean stands not just in terms of unity, but on how it is adjusting to a much more volatile and transactional global environment, especially with the US shifting gears again,' she added. The Myanmar issue will be high on the AMM agenda, given the heightened expectations on Asean with the civil war there ongoing for four years without meaningful progress, she said. 'There is only so much the region can keep repeating statements without follow-through,' she added. Asia West East Centre director and co-founder Abdolreza Alami said Trump's proposed tariffs on Malaysia, Indonesia, Thailand, Vietnam, Cambodia and the Philippines poses a significant threat to Asean's export-driven economies. As such, he said US-Asean dialogue will be a vital platform for negotiations with American officials to mitigate the impact of the tariffs. Abdolreza said the region aimed to maintain neutrality and Asean centrality, and the separate dialogues with US and China will focus on balancing relations with both superpowers. 'The intensifying US-China competition, particularly in the South China Sea and technology, places Asean in a delicate position,' he added. Julia Roknifard, senior lecturer at Taylor's University School of Law and Governance, said US tariffs will be a major point of discussion but Asean as a regional grouping 'held collective weight to address the tariff challenge.' 'Each country will share its response to the US tariff policy and they will see how Asean countries can align themselves,' she added. Roknifard expected the Myanmar crisis to be raised during the AMM with Malaysia heavily pushing for progress on that front. 'While the ability of Asean members to resolve the crisis is limited, they still want to keep the issue in discussion, in the hopes that keeping it high on the agenda will eventually have some effect on the Myanmar government,' she added. Prime Minister Datuk Seri Anwar Ibrahim is scheduled to officiate the official AMM opening ceremony tomorrow upon his return from Rio de Janeiro, Brazil, where he addressed the BRICS Summit. The four-day meet will include the South-East Asia Nuclear Weapon-Free Zone Commission meeting, 15th East Asia Summit Foreign Ministers' Meeting and the 32nd Asean Regional Forum. More than 10 Asean Post-Ministerial Conferences will be held, including meetings with China, Australia, Canada, India, New Zealand, Japan, Russia, South Korea, United States, United Kingdom and the European Union.
The Star
06-07-2025
- Business
- The Star
Ministry's new village blueprint aiming to revive communities, economies
A FRESH 10-year New Village Development Master Blueprint for Malaysia, succeeding the previous plan, is in the process of being drafted. Instead of private consultants, Housing and Local Government Ministry is looking at local expertise in academia and universities to shape the roadmap. Malaysian Chinese New Village Secretariat chairman Khoo Poay Tiong said the blueprint would be more inclusive, academically driven, and community-focused. 'Our academics have meticulously studied these villages and we should leverage on their expertise. 'Minister Nga Kor Ming has set four key directions for the blueprint – infrastructure development, 'One Village, One Product' initiative, new village beautification, and boosting tourism within these communities,' he said in an exclusive interview with StarMetro. Khoo said improving basic infrastructure was crucial to attracting young people to remain in new villages. 'The government will prioritise upgrading roads, drainage systems, street lighting, community halls and digital connectivity to support a comfortable and connected lifestyle,' Khoo said. 'The ministry is allocating RM100mil annually for development across 613 new villages nationwide. RM120mil was disbursed last year with potentially more for this year.' Recognising new villagers' rich cultural and economic potential, the blueprint will also push for the 'One Village, One Product' initiative, encouraging villagers to promote local offerings either local food, crafts or exclusive attractions. 'From Sekinchan's seafood and padi-based products to Perak's charcoal, many villages possess unique items and the government plans to aid in their promotion. 'Such initiatives are expected to attract tourists, create job opportunities, boost local economies and entice youths to return,' he said. 'Complementing this is the focus on new village beautification, ensuring communities are clean and well-maintained, thus fostering a conducive environment for long-term residency.' Khoo said through the Chinese New Village Bureau (BKBC), a competition called New Village Good Product was held under the One Village, One Product initiative. This provided successful participants with training in marketing and product packaging. 'Some winners have seen a 30% increase in sales after the competition's exposure, building their confidence to promote their products overseas.' The second competition, the New Village Beautification Competition, Khoo said encouraged villagers to adopt green concepts. 'Judges conduct unannounced evaluations to ensure villages maintain cleanliness,' he said, adding that both competitions were divided into north and south of the peninsula. He said the blueprint was geared towards positioning new villages as tourism destinations. 'New villages are rich in history, culture and nature, such as those in Johor, which can become attractive weekend getaways for locals and Singaporeans. 'These villages offer authentic experiences of traditional rural life, fresh food and eco-tourism activities like organic farming and fishing trips,' he said. Beyond macro-level development, the ministry has also introduced micro-level support for vulnerable groups within new village communities. 'This includes home repair grants of up to RM70,000 for B40 families and single mothers,' he said. 'Furthermore, a collaboration with Bank Simpanan Nasional (BSN) provides access to micro personal loans at just 2.5% interest per annum. 'These loans, ranging from RM50,000 for first-time borrowers to RM100,000 for subsequent ones, are helping villagers expand small businesses and renovate homes. 'Last year, over RM10mil in loans were disbursed from a RM140mil allocation, benefitting more than 200 borrowers.' Although depopulation still exists in certain remote villages, there is a growing trend of people returning to new villages. 'Leveraging the existing ecosystem of new villages, some have ventured into eco-farming, while others manage homestays,' he said. Regarding applications for Unesco heritage recognition, Khoo said the ministry was exploring such possibility. 'The ministry's role is to prepare the environment and infrastructure for young adults to return and revitalise local businesses, and boost local tourism. 'The historical and unique origins of new villages form part of our national heritage. 'Any village meeting the criteria for Unesco heritage recognition can apply. 'Who knows, they could transform into heritage towns, just like what happened with Melaka and George Town.' – By JAROD LIM
