Will Malaysia become Chery’s export hub in ASEAN?

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz met with China car company Chery to discuss their plans to establish Malaysia as Chery’s export hub for ASEAN and other regions.

“Yesterday, I met with Chery again to hear about their plans to make Malaysia an export hub for Chery in ASEAN and other regions.

“God willing, they will start exporting by the end of this year.

“I hope Chery’s success will encourage more manufacturers to make Malaysia their production hub in the ASEAN region,” he said via a Facebook post. 

In June, he launched the Chery assembly plant in Shah Alam, Selangor.

The plant is part of Chery’s RM1 billion investment in Malaysia.

Chery’s decision to set up an assembly plant in Shah Alam disproved the claim that Malaysia’s automotive supply chain is not cost-effective.

In June, Geely Chairman Li Shufu reportedly said that Malaysia’s automotive supply chain costs are 30% higher than in China and 10% more than in Thailand, citing a heavy reliance on imported parts.