Pekan Automotive Park: The Premier Automotive Hub


The Pekan Automotive Park (PAP) Phase 2 is a key strategic infrastructure project implemented under the East Coast Economic Regional Development Council (ECERDC).

Under the National Automotive Policy (NAP), PAP has grown into an automotive production hub over the past 30 years. Beginning its operations in 1983, HICOM Automotive Manufacturers (M) Sdn. Bhd. (formerly known as Automotive Manufacturers (Malaysia) Sdn. Bhd.) was one of the pioneer players in the Park.

Today, PAP is the Malaysian base for the final assembly of renowned brands such as Mercedes- Benz, Volkswagen, Isuzu, and Mitsubishi, with a special focus on producing premium, energyefficient vehicles. These brand name vehicles are made in world-class production lines at PAP.

Currently, the development of PAP Phase 2 covers approximately 237 acres, with ample room for further capacity for development to meet the needs and demands of existing as well as new automotive assemblers, manufacturers and vendors.

As PAP is part of the East Coast Economic Region (ECER) Special Economic Zone, investors who set up their businesses here are also eligible to enjoy fiscal and other incentives.

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PAP is well-connected with highways as well as air and sea transportation systems. 

A significant advantage of PAP is its proximity to Kuantan. With its new deep-water port, the Kuantan Port offers one of the fastest distribution routes to major ports in China and other Asia Pacific markets. 

In addition, the 640 km East Coast Rail Link (ECRL) upon completion will link two major ports in Peninsular Malaysia, namely Port Klang and Kuantan Port. This will undoubtedly benefit investors at PAP.


Human Capital

PAP is home to the DRB-HICOM University of Automotive Malaysia that develops human capital specifically for the automotive sector. This helps address the supply of skilled manpower for the industries at PAP.

Strategy Moving Forward

The Malaysian automotive industry is set to receive fresh impetus with the revamp of the National Automotive Policy in 2020. The focus is to enhance the sector in line with Industry 4.0 and its technologies.

To this end, ECERDC has formed strategic partnerships with key stakeholders to facilitate greater knowledge and technology transfer.

This will equip the people of ECER with new skills in fields relevant to the automotive industry such as robotics, artificial intelligence, cloud computing, Internet of Things (IoT) and digital fabrication.

As envisioned in the ECER Master Plan 2.0 (2018-2025), PAP will continue to develop capabilities in the automotive sector ecosystem by promoting the Park to more original equipment manufacturers (OEMs) for making auto components, capitalising on the green vehicle trend, and promoting adjacent activities such as manufacturing of rail parts and coaches.

To further support the growth and development of the automotive industry in ECER, the adoption of Industry 4.0 will revolve around the Asia Centre of Excellence for Smart Technologies (ACES), a collaboration between TUM International GMBH (TUM) of Germany and ECERDC. ACES will play a catalytic role as the hub for talent development as well as digital transformation consultancy and services for the ASEAN region.

For further information about opportunities in ECER or if you are interested to establish/ expand your business here, please contact:

General Line: +603 8885 0000 

IM Line: +603 8885 0038 

Fax: +603 8885 0020 

Email: [email protected]

Website: www.ecerdc.com.my April


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Last Updated : Thursday 22nd October 2020