HomeAutomotiveMIDA and Chery Forge Strategic Automotive Alliance to Advance Malaysia’s Auto Sector

MIDA and Chery Forge Strategic Automotive Alliance to Advance Malaysia’s Auto Sector

Chery shows just how serious they are about making it big in Malaysia.

A landmark partnership between the Malaysian Investment Development Authority (MIDA) and Chery Corporate Malaysia Sdn. Bhd. has set the stage for a new era in Malaysia’s automotive industry. The Chery Premier Supply Chain Synergy Programme, launched on 17 May 2025, aims to strengthen the local supply chain, support next-generation vehicle (NxGV) production, and foster cross-border collaboration.

Jaecoo factory

Backed by the Ministry of Investment, Trade and Industry (MITI) and the Malaysia Automotive Robotics and IoT Institute (MARii), the programme united 12 leading suppliers from China and 23 from Malaysia. This collaboration reflects both parties’ commitment to expanding Malaysia’s industrial capabilities and attracting long-term investments.

According to MIDA CEO Datuk Sikh Shamsul Ibrahim, the programme is in line with the National Automotive Policy (NAP) 2020 and will drive local vendor development while encouraging the adoption of Industry 4.0 practices. “We envision a future rich with technology transfer, streamlined supply chains, and enhanced industrial capabilities,” he said.

Chery Malaysia Executive Vice President Leo Chen added that the programme supports the company’s long-term vision of localising its supply chain and strengthening regional competitiveness. “We aim to create a dynamic platform for mutual growth, ensuring that both Malaysian and Chinese suppliers benefit from shared innovation and expertise in automotive engineering,” Chen said.

Jaecoo factory

A key highlight of the event was the announcement of Chery’s upcoming Smart Auto Industrial Park at the Beringin High-Tech Auto Valley. This state-of-the-art facility is expected to become Chery’s regional manufacturing hub, underscoring Malaysia’s strategic position in the Southeast Asian automotive landscape.

The initiative also saw the signing of four major Memoranda of Understanding (MoUs) between Chery, Malaysian firms, and Chinese automotive technology leaders. These MoUs cover collaboration in electronics, battery systems, and transmission technologies—further boosting Malaysia’s participation in the global EV supply chain.

Chery

With increasing global demand for electrification and smart mobility solutions, this alliance is a strategic step in transforming Malaysia into a leading hub for innovative automotive manufacturing. The Chery-MIDA partnership is not only expected to attract new investments but also catalyse job creation and upskilling across the local industry.

For more information, visit www.mida.gov.my and www.chery.my.

Subhash Nair
Subhash Nairhttp://www.dsf.my
Written work on dsf.my. @subhashtag on instagram. Autophiles Malaysia on Youtube.
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