MIDA-Chery Alliance Drives Forward Malaysia’s Automotive Supply Chain

The Malaysian automotive industry is entering a transformative phase, propelled by strategic partnerships that reinforce its position within the regional and global supply chain. At the forefront of this evolution is MIDA, which, together with Chery, has taken a bold step to establish high-impact collaborations that align with Malaysia’s long-term industrial ambitions. Through key initiatives like the Chery Premier Supply Chain Programme in Wuhu, China, and the subsequent Chery Premier Supply Chain Synergy Day in Malaysia, the collaboration demonstrates a comprehensive, multi-tiered approach to strengthening critical supply chains, advancing vendor development, and catalysing investment in high-value manufacturing.

The Chery Premier Supply Chain Programme, held in Wuhu, People’s Republic of China, from 2nd to 5th December 2024, was a carefully structured initiative between MIDA and Chery, working in close collaboration with the Ministry of Investment, Trade and Industry (MITI) and the Malaysia Automotive Robotics & IoT Institute (MARii). This programme aims to strengthen ties between Malaysian automotive vendors and Chery Technology Group (CTG), advancing Malaysia’s integration into the ASEAN automotive supply chain and boosting local vendors’ global competitiveness.

Building on the foundations laid in Wuhu, MIDA and Chery Corporate Malaysia hosted the Chery Premier Supply Chain Synergy Day on 14 May 2025 to transform initial discussions into long-term partnerships, driving growth, innovation, and added value in Malaysia’s automotive sector.

The Chery Premier Supply Chain Programme held in Wuhu, featured a comprehensive agenda that included strategically focused conferences, in-depth factory visits to Chery facilities, and highly productive one-on-one business matching sessions.

These sessions proved highly impactful, enabling targeted engagement between over 30 Malaysian automotive vendors, Chery Technology Group, and 19 leading Chinese suppliers to explore joint ventures and supply opportunities. The event attracted over 130 participants—including key industry leaders like YB Lee Chean Chung, Chairman of the Malaysia-China Technology Promotion Association and Mr. Zhang Guibing, Chery International President —highlighting its strategic significance and strong interest from both the public and private sectors. MITI and MARii delegates were also present during the event.

The programme aims to enhance Malaysian automotive vendors’ capabilities through exposure to China’s advanced Industry 4.0 technologies, promote strategic collaboration with Chery in supply chain and capacity building, and share best practices in efficient supply chain management. It also seeks to inform stakeholders of current investment opportunities, incentives, and policies to support industry growth and attract greater foreign investment.

The collaborative outcomes of the Wuhu programme are already materialising. MIDA’s facilitation led to the formalisation of strategic partnerships aimed at strengthening Malaysia’s automotive value chain:

• Feytech Sdn. Bhd., a local seating systems specialist, and Wuhu Ruitai Auto Parts Co. Ltd., a core vendor within Chery’s supply network, signed a Memorandum of Understanding (MoU) to co-develop, manufacture and assemble high-quality automotive seat components. This partnership will enhance Feytech’s production capabilities and its access to both regional and international markets.

• Multi-Code Electronics Industries (M) Berhad, a leading Malaysian electronics manufacturer, initiated collaboration discussions with Wuhu Atech/Bitech Automotive Electronics Co., Ltd. in areas including Body Control Modules (BCM), Advanced Driver-Assistance Systems (ADAS), and intelligent automotive instrumentation. Such collaborations are key to positioning Malaysia at the forefront of smart vehicle innovation.

These developments reflect MIDA’s active role in investment facilitation, capacity building, and supply chain integration—all crucial to fostering a competitive, innovation-driven ecosystem in line with Malaysia’s national industrial policy goals.

MIDA and Chery’s commitment to advancing Malaysia’s automotive industry was reaffirmed through the successful hosting of the Chery Premier Supply Chain Synergy Day in MIDA, KL Sentral. Building on the momentum of the Wuhu programme, the event served as a platform to formalise partnerships through the signing of multiple Memoranda of Understanding (MoUs) between Malaysian vendors and key Chery suppliers from China. It also marked a deepening collaboration between Chery Technology and Chery Corporate Malaysia, highlighting their shared vision for sustainable industry growth.

Key objectives included translating exploratory discussions into actionable partnerships, facilitating technology and knowledge transfer, and unveiling the Chery Supplier Park in Lembah Beringin, Selangor —a major investment that promises to enhance local vendor participation and attract further foreign investment. The Synergy Day also reaffirmed Chery’s role in positioning Malaysia as a regional Right-Hand Drive (RHD) export hub and a centre for advanced R&D under the National Automotive Policy (NAP) 2020 and the New Industrial Master Plan (NIMP) 2030.

Together, MIDA and Chery are laying the foundation for a competitive and innovation-driven automotive ecosystem in Malaysia. Their strategic alignment, supported by tangible outcomes such as vendor linkages, supply chain integration, and industrial capacity building, reinforces Malaysia’s trajectory as a leading player in the regional and global automotive supply chain.

To explore investment opportunities, please contact the Transportation Technology Division, MIDA at https://www.mida.gov.my/staffdirectory/transportation-technology-division/