Malaysia's close cooperation with China will enhance its ability to meet EV adoption targets: analyst

Translation. Region: Russian Federal

Source: People's Republic of China in Russian – People's Republic of China in Russian –

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Source: People's Republic of China – State Council News

KUALA LUMPUR, July 19 (Xinhua) — Malaysia has significantly accelerated its clean energy development and industrial restructuring in recent years, showing strong momentum in the electric vehicle (EV) sector and deepening cooperation with China in technology and investment in this area, Lee Pei Mei, an analyst with the International Islamic University Malaysia, told Xinhua.

Malaysia's shift to EVs has been supported by both domestic policy frameworks and external technology partnerships, she said. In particular, China's advanced and cost-effective EV technologies have helped develop the country's EV ecosystem and support its green industrial transformation.

“China’s global expansion in the EV industry is not limited to just selling vehicles, it also involves the transfer of technological capabilities. Chinese companies are localizing production, investing in research and development and building supply chains, helping Malaysia build a comprehensive EV ecosystem,” Li Pei Mei emphasized.

She noted that China's EV sector is known for its vertically integrated value chain, spanning R&D, manufacturing, sales, after-sales service and standard setting. Several leading Chinese companies have already adapted this business model in Malaysia.

Malaysia's ambition to become a regional hub for electric vehicle manufacturing is centred on the Automotive High-Tech Valley (AHTV) project in Tanjung Malim, which is expected to attract significant investment and cement the country's status as a global EV producer.

Li Pei Mei added that the AHTV project is not limited to being a production site, but also supports the development of local talent in areas such as artificial intelligence, software development and automotive innovation.

The analyst stressed that Chinese companies also benefit from this partnership and access to the Malaysian market. In her view, the growing middle class and favorable investment environment in Southeast Asia are the main attractions for them. “By expanding into Southeast Asia – especially in business-friendly countries like Malaysia – they gain access to new consumer bases and cost advantages,” she explained.

Lee Pei Mei also noted that the right combination of policy support, strategic cooperation and industry alignment has put Malaysia on a solid path to becoming a leader in EVs in the region.

“This is a classic win-win situation. Malaysia gets technology, jobs and industrial depth. China gets markets and long-term strategic partnerships. Together, both sides are shaping the future of green mobility in Asia,” she concluded. –0–

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