MIDA-Hyundai Lay Groundwork To Strengthen Local Manufacturing

The Malaysian Investment Development Authority (MIDA) and Hyundai Motor Malaysia recently completed a five-day Supply Chain Development and Partnership Programme in South Korea, aimed at strengthening Malaysia’s localisation capabilities and preparing local vendors for next-generation automotive production. 

Held from Oct 27 to 31, the programme brought together 12 Malaysian vendors and 36 global Tier-1 suppliers from Hyundai for business matching sessions, factory visits, and technology-sharing engagements. 

Participants also visited Hyundai’s Asan Plant and Hyundai Motor Studio to gain first-hand exposure to the company’s advanced manufacturing systems and mobility innovations.

This collaboration builds on localisation plans first revealed before Hyundai Motor Malaysia’s official launch, when the company announced three CKD models slated for Q3 2025. However, only one model, the Staria has materialised so far. 

Industry sources suggest Hyundai may be reassessing its strategy and preparing for a stronger push in 2026, making this vendor development exercise an important signal of renewed commitment.

MIDA’s CEO, Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, said the programme is a key step in strengthening Malaysia’s position as a regional automotive hub through close public-private collaboration in line with the National Automotive Policy and the New Industrial Master Plan 2030. 

During the programme, Malaysian vendors were matched with Hyundai’s Korean suppliers to explore long-term partnerships, with discussions spanning co-development, technical collaboration, and improved access to regional and global value chains. 

Four Memorandums of Understanding (MoU) were inked between Malaysian and Korean companies to support Hyundai’s future production needs in Malaysia. These agreements provide local vendors with access to advanced technologies and manufacturing expertise, helping elevate quality, improve efficiency, and reduce reliance on imported components while stimulating innovation and skilled job creation.

Hyundai Motor Malaysia’s Managing Director, Jahabarnisa Haja Mohideen, reiterated the company’s long-term commitment to Malaysia, noting that Hyundai aims to work closely with MIDA and industry partners to build a stronger, more resilient supply chain. 

The collaboration signals both confidence in Malaysia’s automotive ecosystem and a strategic move to strengthen its CKD roadmap after a slower-than-expected start this year.