China and Thailand sign MOU: Thailand will be regional Chinese EV tech centre.
On December 19, 2025, a landmark Memorandum of Understanding (MoU) was signed between Thailand’s Board of Investment (BOI) and China EV100, the premier think tank guiding the Chinese government’s electric vehicle policy. As the first ASEAN nation to secure such a partnership, Thailand has effectively positioned itself as the regional epicenter for Chinese EV technology, raising questions about whether Malaysia has lost out on massive future investments.
A Massive Investment Loss for Malaysia?
The signing of the MoU between the BOI and Mr. Zhang Yongwei, Vice President of China EV100 is a strategic anchoring of the global EV supply chain in Thailand. While Malaysia has seen a flurry of Chinese brand launches over the last two years—including the likes of BYD, XPENG, and Chery—the “massive investment” represented by this new agreement suggests that the primary focus of Chinese authorities has landed on Bangkok, not Kuala Lumpur.
As of October 2025, Thailand’s BOI has already promoted THB 140 billion (US$ 4.5 billion) in EV-related investments. This includes 21 BEV manufacturing projects and 54 battery production facilities. By contrast, while Malaysia’s EV registrations surged to over 20,000 units in the first nine months of 2025, the country still lags behind Thailand in total adoption rates and large-scale manufacturing commitments.
This first-ever ASEAN MoU with Thailand indicates that the country offered a more compelling environment for high-end manufacturing and technology transfer. The agreement facilitates technology transfer from Chinese companies to Thai entrepreneurs and supports joint ventures, effectively integrating Thai electronics and software businesses into intelligent vehicle systems.
Policy Consistency and Infrastructure Challenges
Malaysia’s loss may stem from infrastructure and policy hurdles. While Malaysia leads in charger accessibility per vehicle, it has struggled to reach its target of 10,000 chargers by year-end 2025. Furthermore, the expiry of CBU EV tax exemptions at the end of 2025 has created a “price shock” expectation that may have made Chinese policy-shapers “China EV100” favor Thailand’s more aggressive production-linked subsidy framework.
Thailand’s ability to secure this partnership suggests that while Malaysia was a successful test market for sales, the “proper” infrastructure for a sustainable, high-tech EV ecosystem—spanning battery management, swapping systems, and global supply chain integration—was found across the border. For Malaysia to remain competitive, it must now look beyond being a sales destination and move toward the deep-tech collaboration currently being pioneered by the Thailand-China EV alliance.
