Our little historical state Melaka isn’t just about chicken rice balls and tourist buses anymore. It’s actually turning into Malaysia’s electric vehicle (EV) manufacturing powerhouse. Serious stuff happening there, and you should know about it if you’re thinking about investments or just curious about where our country is heading.

What’s Actually Happening in Melaka Right Now

Two big projects are changing Melaka’s landscape completely. And when I say big, I mean ringgit flowing like teh tarik at your favorite kopitiam.

First up is Fieldman EV Sdn Bhd. These guys are putting RM1 billion into building Malaysia’s first proper EV assembly plant in Elkay Lipat Kajang Industrial Area, Jasin. They’re working with China’s Changan Automobile to make right hand drive electric cars for us and the whole ASEAN region. The plan started back in 2018, and by 2026, this plant will be ready to create 5,000 jobs. That’s a lot of families getting steady income, you know.

Then there’s EP Manufacturing Berhad (EPMB) at HICOM Pegoh Industrial Park. They’ve already spent more than RM100 million and guess what? They rolled out their 1,000th vehicle in December 2024. Not bad for a start! They’re working with Chinese companies Great Wall Motor (GWM) and BAIC, targeting 30,000 cars per year in the first phase. That’s another 1,000 jobs coming up.

But here’s something you might not know. EPMB isn’t just about cars. Through their subsidiary EP BlueShark, they’re also manufacturing electric bikes in Melaka! Since getting their manufacturing license from MITI in 2022, they’ve been importing and assembling two-wheeled EV components for both local and ASEAN markets. They’ve already secured deals to supply electric bikes to Indonesia and Vietnam, plus they have exclusive distribution rights for the affordable LINGBOX EV in Malaysia. Smart diversification, right?

Government Actually Supporting This Time

You know how sometimes the government promises but delivery is slow? This time they’re serious about making Malaysia a regional EV leader. They’re offering some really good incentives through MIDA and the Green Technology and Climate Change Corporation.

Here’s what companies can get:

  • Income tax breaks or pioneer status for EV manufacturers
  • Green Investment Tax Allowance (GITA) with 100% tax exemption for up to 5 years
  • No import duties and excise taxes on fully imported EVs until end of 2025
  • Even better deals if you assemble locally

Melaka state itself is planning 300 charging stations by 2026. Smart move because what’s the point of having electric cars if you can’t charge them properly?

Why Melaka Makes Sense for Investors

Let me tell you why Melaka is getting attention from investors. It’s not just about the chicken rice, okay?

Melaka offers something that Selangor and other states can’t match. Lower land prices, less traffic jams, and the state government actually helps you get things done. Selangor focuses more on R&D and distribution, Kedah has the big global brands, but Melaka? It’s perfect for actual manufacturing.

The state is building up its supply chain capabilities too. We’re talking about battery pack assembly, thermal management, inverters, and vehicle control software. EPMB is even developing battery production capabilities and swapping stations across ASEAN. The industrial parks are ready, infrastructure is there, and the support system works.

Export Potential Beyond Malaysia

Here’s where it gets interesting. Melaka isn’t just thinking about local market. With Tanjung Bruas Port and good connections to Melaka Gateway, companies can easily export to Thailand, Indonesia, Vietnam, and other ASEAN countries.

These countries are all pushing for more electric vehicles with their own targets and incentives. Malaysia’s participation in AFTA and RCEP means whatever you make in Melaka gets preferential treatment when you export. Good business sense, right?

This Is Real, Not Just Talk

I’ve seen too many “grand plans” that never happen. But this Melaka EV thing is different. Real money is flowing in, actual plants are being built, and cars are already rolling out. The timelines are realistic, government support is concrete, and the business case makes sense.

For any foreign investor looking at battery production, software development, or component manufacturing, Melaka should be on your list. It’s not just historical anymore. It’s becoming Malaysia’s green future manufacturing hub.

FAQ

Q: What types of electric vehicles are being manufactured in Melaka? A: It’s not just cars! Melaka manufactures both electric cars and electric bikes. EPMB produces cars through partnerships with Great Wall Motor and BAIC, while their subsidiary EP BlueShark manufactures electric bikes and has deals to supply to Indonesia and Vietnam.

Q: Why is Melaka chosen over other states like Selangor for EV manufacturing? A: Melaka offers lower costs, less congestion, dedicated state support, and good port access for exports. While Selangor focuses on R&D, Melaka is perfect for actual manufacturing with better value for money.

Q: How many jobs will these EV projects create in Melaka? A: The two major projects alone will create about 6,000 jobs. Fieldman EV will provide 5,000 jobs by 2026, while EPMB will support 1,000 new jobs. More projects are expected to add even more opportunities.

Q: When will these EV plants start full production? A: EPMB is already producing cars and rolled out their 1,000th vehicle in December 2024. Fieldman EV’s plant will be completed by 2026. Both are scaling up production capacity gradually.

Q: What government incentives are available for EV manufacturers in Melaka? A: Companies can get income tax allowances, pioneer status, Green Investment Tax Allowance (GITA) with 100% tax exemption for up to 5 years, and no import duties on EVs until end of 2025. The state is also building 300 charging stations by 2026.

Q: Can vehicles made in Melaka be exported to other ASEAN countries? A: Yes, definitely. Melaka has good port access through Tanjung Bruas Port and benefits from AFTA and RCEP trade agreements, which provide preferential tariff treatment for exports to neighboring countries.

Q: Is there support for EV supply chain companies beyond just car assembly? A: Absolutely. Melaka is attracting companies for battery pack assembly, thermal management solutions, inverters, and vehicle control software. The industrial parks have ready infrastructure to support the entire EV ecosystem.

Source:Asean Briefing