The Malaysian government will decide by the end of the yearon proposals by five foreign vehicle manufacturers to launch assembly operations in the country, according to trade and industry minister Datuk Seri Mustapa Mohamed.

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The vehicle manufacturers are understood to be from China, India, South Korea, Japan and Europe. The Malaysian Investment Development Authority (Mida) is currently evaluating the applications.

The minister added the some of the applicants may make use of existing production capacity in the country. “Malaysia has a production capacity of over 1m units per year, yet output is around 500,000 units at present” he added. 

Vehicle sales in the country are expected to reach a new record of 570,000 units this year, according to the Malaysian Automotive Association.

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