Chinese Company Strengthens Perak’s Automotive Industry With RM160 Million Investment Saarani

In a significant move set to elevate Perak’s standing in the regional manufacturing and industrial sector, Chinese automotive component manufacturer Yantai Yatong Precision Mechanical Corporation has committed a substantial investment of RM160 million to establish its first-ever overseas production facility in the state. The development marks a major milestone in Perak’s ongoing efforts to attract high-value foreign direct investment, strengthen its industrial base, and position itself as a key hub for the automotive industry in Southeast Asia.

Perak Menteri Besar Datuk Seri Saarani Mohamad confirmed the investment, noting that Yantai Yatong is a well‑respected and established player in the global automotive supply chain, with more than 20 years of proven experience in designing, engineering, and producing high‑precision mechanical components. The company currently supplies parts to some of the world’s leading automobile brands, adhering to strict international quality standards and employing advanced manufacturing technologies. Its decision to expand outside China and choose Perak as its first international base reflects strong confidence in the state’s infrastructure, business environment, and long‑term economic prospects.

According to the Menteri Besar, Yantai Yatong has selected Tanjong Malim Hi‑Tech Park as the site for its new manufacturing plant. The location was chosen for its strategic advantages, including excellent road and rail connectivity, proximity to major ports and logistics networks, and access to a skilled local workforce. The industrial park is also purpose‑built to support high‑technology and advanced manufacturing operations, offering ready‑to‑use facilities, reliable utilities, and a regulatory framework designed to facilitate smooth business operations.

The agreement was reached following a productive visit by an official delegation from the Perak state government to Yantai Yatong’s headquarters and main production facilities in Changshu, Suzhou, on Thursday, May 21. The trip formed part of a broader investment mission led by Saarani himself, whose objective is to strengthen economic cooperation between Perak and China, showcase the state’s investment potential, and secure partnerships that can drive sustainable growth.

In a detailed statement posted on his official Facebook page, Saarani explained that the RM160 million investment carries multiple benefits for both Perak and the national economy. “This investment will not only expand our industrial landscape but also contribute significantly to the growth and modernization of Malaysia’s automotive sector,” he said. “It reinforces Perak’s position as a preferred destination for global manufacturers and helps build our reputation as a regional automotive hub.”

Beyond the immediate economic boost, the project is expected to generate meaningful employment opportunities for residents. The new facility will require a wide range of skilled and semi‑skilled workers, from production operators and technicians to quality control specialists and administrative staff, providing stable careers and helping to retain talent within the state.

Furthermore, the presence of an established international manufacturer like Yantai Yatong will bring valuable technology transfer and knowledge sharing. Local workers and businesses will gain exposure to global production standards, advanced engineering techniques, and efficient operational practices, which in turn will raise the overall competitiveness of Perak’s industrial workforce. The investment is also likely to stimulate the growth of local supporting industries, creating a more integrated and resilient supply chain that can serve both domestic and export markets.

Saarani emphasized that the state government remains fully committed to supporting the success of this project and future investments. “We will continue to offer our full cooperation and ensure that all necessary approvals and support services are provided efficiently,” he stated. “Our goal is to attract only high‑quality investments that align with our long‑term development plans, bring in advanced technology, and create sustainable value for our people.”

The investment mission to China, which began earlier in the week, is part of Perak’s broader strategy to diversify its economy, move up the value chain, and reduce dependence on traditional sectors. By actively engaging with international partners and promoting its strengths, the state aims to build a more dynamic and resilient industrial ecosystem that can deliver inclusive growth for years to come.