Supplier Robert Bosch is spending MYR140m (US$36m) on its car multimedia plant near Georgetown on the Malaysian island of Penang.
The project is scheduled to be completed by 2018 and will strengthen the Malaysian factory's position as a global multi-media systems supplier .
New buildings have been added at the plant to expand R&D and engineering operations and overall engineering staff is expected to increase 40% by the end of 2016.
Additional capacity and more advanced equipment has been introduced at the plant's surface-mount technology (SMT) manufacturing operations, in line with rising global demand.
Almost half of the MYR140m budget has already been spent on expanding these operations since 2014.
Bosch employs about 2,500 people in Malaysia. In Penang it has manufacturing facilities for multimedia systems, power tools and systems for automotive steering.
Operations in Malaysia generated revenues of MYR552m (US$150m) in 2014.