Flying Cars In Malaysia: Chinese Tech Giants Approach MITI For Testing & Manufacturing

XPeng flying car

Remember back in 2019 when the idea of a Malaysian "flying car" first dominated local headlines, triggering endless memes, viral CGI video of a flying Myvi, and jokes about Wawasan 2020?

Well, passenger drones and autonomous air mobility are officially back on the table, and this time, global aerospace giants are knocking directly on Putrajaya’s door.

Several Chinese companies have officially approached the Ministry of Investment, Trade and Industry (MITI) to propose using Malaysia as a testing ground for urban air mobility (UAM) technologies, including flying cars and passenger air taxis.

Beyond Air Tests: Manufacturing & Service Operations On The Table

MITI Deputy Minister Sim Tze Tzin (Photo: Utusan TV)

Speaking at the launch of the Malaysian Aerospace Roadmap Development for the Low Altitude Economy (LAE) and maintenance, repair, and overhaul (MRO) digitalisation, Deputy Investment, Trade and Industry Minister Sim Tze Tzin revealed that the discussions are still at an early stage.

However, the Chinese companies aren't just looking for flight permission, they are actively exploring setting up manufacturing hubs and related technical services within Malaysia.

To build a structured ecosystem, Malaysia is benchmarking established international frameworks from China, the United Kingdom, Japan, Germany, and Singapore.

The National Low Altitude Economy (LAE) Push

EHang EH216 AAV

The interest from foreign firms comes as Putrajaya accelerates its national strategy for the Low Altitude Economy (LAE). The sector spans operations at 1,000 meters and below, covering unmanned aircraft systems (UAS), cargo drone deliveries, urban air mobility, and autonomous passenger flights.

The Ministry of Transport, alongside the Civil Aviation Authority of Malaysia (CAAM), recently introduced its roadmap to integrate autonomous flight safely.

Under CAAM's planned timeline, limited commercial freight drone services could launch as early as Q1 2027, laying the regulatory groundwork for passenger drones and air taxi services by 2030. Foreign operators like those from China will be required to form joint ventures with local firms before launching operational services in Malaysia.

"You Don't Want Something Dropping From The Sky"

Despite the economic prospects, MITI emphasized that safety standards and strict regulatory frameworks remain the top barrier before any flying vehicles fill local skylines.

"There's a lot of regulatory work to be done. If you want to send all these deliveries, they have to be safe. You don't want suddenly something drop from the sky and hit you, right?"

— Sim Tze Tzin, Deputy Investment, Trade and Industry Minister

Sim noted that Malaysia must strike a balance between fostering innovation and giving civil aviation regulators enough room to establish bulletproof airspace safety guidelines.