Last updated: 6 October 2025
TL;DR
Malacca is rapidly becoming Malaysia’s electric vehicle (EV) manufacturing hub, driven by billion-ringgit investments, government incentives, and a skilled workforce. With new assembly plants, supply chain development, and export ambitions, Malacca is set to play a pivotal role in Southeast Asia’s green mobility future.
Malacca’s Rise: The New Heart of Malaysia’s EV Industry
Malacca, once best known for its rich history and tourism, is now at the forefront of Malaysia’s electric vehicle (EV) revolution. In 2025, the state is making headlines as a magnet for major EV investments, government support, and a growing ecosystem of suppliers and skilled workers.
Major Investments Fueling Growth
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Fieldman EV Sdn Bhd: Investing RM1 billion (US$233 million) in Malaysia’s first EV assembly plant in Jasin, in partnership with China’s Changan Automobile. The plant will produce right-hand-drive EVs for Malaysia and ASEAN, creating 5,000 jobs by 2026.
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EP Manufacturing Berhad (EPMB): Over RM100 million (US$23.3 million) invested in HICOM Pegoh Industrial Park. The facility has already produced its 1,000th vehicle and targets 30,000 units annually, with 1,000 new jobs.
| Company |
Investment (RM) |
Location |
Jobs Created |
Annual Capacity |
| Fieldman EV Sdn Bhd |
1,000,000,000 |
Jasin |
5,000 |
N/A |
| EP Manufacturing Berhad |
100,000,000 |
HICOM Pegoh Industrial |
1,000 |
30,000 |
Government Incentives & Policy Support
The Malaysian government is actively supporting the EV sector through:
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Tax allowances and import duty exemptions for fully imported EVs (until end-2025)
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Incentives from MIDA and MGTC for local and foreign investors
- Commitment to 300 public charging stations in Malacca by 2026
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Workforce development via UTeM and Malacca Polytechnic, offering EV-specific technical programs
Building a Complete EV Supply Chain
Malacca’s strategy goes beyond assembly:
- Attracting battery assembly, vehicle control software, and component suppliers
- Developing local talent to meet industry needs
- Leveraging Tanjung Bruas Port for efficient exports
Export Ambitions: Malaysia’s Gateway to ASEAN
With improved transport links and trade agreements (AFTA, RCEP), Malacca is well-positioned to export EVs to neighboring countries, supporting Malaysia’s goal to be a regional green mobility leader.
Why Malacca? Key Advantages
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Strategic location with port access
- Strong government backing
- Skilled, future-ready workforce
- Robust supply chain ecosystem
- Attractive incentives for investors
Frequently Asked Questions (FAQ)
- Why is Malacca chosen as Malaysia’s EV manufacturing hub?
- Malacca offers strategic port access, government incentives, and a skilled workforce, making it ideal for EV manufacturing and exports.
- What companies are investing in Malacca’s EV sector?
- Major players include Fieldman EV Sdn Bhd (with Changan Automobile) and EP Manufacturing Berhad.
- What incentives are available for EV manufacturers in Malacca?
- Tax allowances, import duty exemptions, and support from MIDA and MGTC.
- How will this benefit local communities?
- Thousands of new jobs, technical training programs, and economic growth.
- Will Malacca-made EVs be exported?
- Yes, especially to ASEAN countries, leveraging Malaysia’s trade agreements.
EV Terms Glossary
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EV: Electric Vehicle
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MIDA: Malaysian Investment Development Authority
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MGTC: Malaysian Green Technology and Climate Change Corporation
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AFTA: ASEAN Free Trade Area
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RCEP: Regional Comprehensive Economic Partnership
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