• Tanjung Malim facility drives localisation, exports and next-generation mobility development while supporting the growth of Automotive High-Tech Valley

Tanjung Malim, Perak, 23 June 2026 – National automotive company PROTON ‘s engine assembly plant in Tanjung Malim, has emerged as a key pillar in Malaysia's automotive transformation, playing an increasingly important role in developing local manufacturing capabilities, supporting exports and accelerating the country's transition towards next-generation mobility solutions.

Since commencing operations in 2022, the facility has grown from an engine assembly operation into a comprehensive powertrain manufacturing hub capable of assembling components for internal combustion engine (ICE), hybrid electric vehicle (HEV), plug-in hybrid electric vehicle (PHEV), and electric vehicle (EV) applications. The plant now produces engines, transmissions and electric drive units that support both current and future PROTON models while also supplying products for selected Geely programmes destined for international markets.

Located within the Automotive High-Tech Valley (AHTV) in Tanjung Malim, the facility forms an integral part of efforts to establish Malaysia as a regional centre for advanced automotive manufacturing and technology development. Beyond vehicle production, the plant is helping to attract investments, develop local suppliers and create high-value technical employment opportunities that contribute directly to the growth of the national automotive ecosystem.

Empowering the nation’s automotive capabilities

PROTON’s engine plant currently assembles a range of advanced powertrain products, including turbocharged and naturally aspirated engines, dedicated hybrid engines (DHE), dual-clutch transmissions (DCT), dedicated hybrid transmissions (DHT), and electric drive units (EDU). To date, the company is the only OEM in the country assembling such a wide range of powertrains, creating local expertise and introducing new technologies to Malaysia’s automotive ecosystem.

With a current design capacity of up to 240,000 engines annually, the plant has continuously expanded its capabilities to meet growing demand from both domestic and export markets. Since its launch, PROTON has invested more than RM121 million to expand production capabilities for engines, transmissions, and electrified powertrain components. These investments have enabled the facility to significantly improve productivity while preparing for future growth as demand for electrified vehicles increases.

A key achievement has been its contribution towards localisation efforts. Today, the facility works with 16 suppliers, half of which are Malaysian companies. The development of a local supplier network not only reduces dependence on imported components but also strengthens the competitiveness and technical capabilities of Malaysian automotive vendors.

The plant also plays a vital role in developing local talent. Employing more than 500 personnel with an average age of 35 years, it serves as a centre for skills development and technology transfer. More than 50 Malaysian employees have undergone training programmes in China, helping to bring global best practices and advanced manufacturing knowledge back to Malaysia.

As part of its continuous improvement journey, the production line has steadily increased its level of automation through the introduction of collaborative robots, artificial intelligence-based inspection systems, and advanced quality assurance processes. These technologies help ensure consistent product quality while improving manufacturing efficiency and supporting the development of Industry 4.0 capabilities within Malaysia's automotive sector.

Spearheading export initiatives to multiple brands

Beyond supplying Proton vehicles, the engine plant is increasingly contributing to export activities. Components assembled in Tanjung Malim are being supplied for Geely products sold in markets such as Vietnam, Mexico and South Africa, reinforcing Malaysia's position within the global automotive value chain and demonstrating the capability of local operations to meet international quality standards.

According to Dato' Ir. Abdul Rashid Musa, Deputy Chief Executive Officer of PROTON, the facility represents much more than an investment in manufacturing capacity.

"The engine assembly plant is a strategic investment that reflects PROTON's long-term commitment to developing Malaysia's automotive industry. Beyond assembling powertrain products, the facility serves as a catalyst for localisation, talent development, technology transfer and export growth, all of which are essential elements for strengthening the country's automotive ecosystem."

"As the Automotive High-Tech Valley continues to develop, facilities such as this will help attract suppliers, create skilled employment opportunities and establish Malaysia as a regional hub for advanced automotive technologies. The fact that we are assembling products for internal combustion, hybrid, plug-in hybrid and electric vehicles demonstrates our readiness to support the industry's evolving needs while ensuring Malaysia remains competitive in a rapidly changing mobility landscape."

He added that the facility also supports PROTON's broader commitment to the objectives of Malaysia's National Automotive Policy and national industrial development agenda.

"The future of the automotive industry will be shaped by innovation, advanced manufacturing and sustainable mobility solutions. Through investments in facilities such as this, the company is helping to build the foundations required for Malaysia to participate meaningfully in that future while creating economic opportunities for local companies and communities."

Looking ahead, PROTON plans to further expand the facility's capabilities and increase engine production capacity to up to 400,000 units annually by 2028. The expansion will ensure the plant remains capable of supporting future PROTON products and growing export demand while continuing to strengthen Malaysia's position as a regional automotive manufacturing and technology hub.

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