Perak Targets Muallim and Batang Padang for Automotive Hub

Tanjong Malim Hi-Tech Park: Perak’s Automotive Hub for Muallim and Batang Padang

Perak is positioning the districts of Muallim and Batang Padang as the state's primary automotive hub, centred on the RM billion-scale Tanjong Malim Hi-Tech Park and the existing Proton City. This initiative, driven by the Perak state government, aims to catalyse the local automotive ecosystem, create employment, and retain young talent by reducing the migration of skilled workers to Kuala Lumpur and Shah Alam. The project is integral to the broader Automotive High-Tech Valley (AHTV) development and signifies a major strategic move for the northern region's industrial landscape.

Key Facts: The Perak Automotive Hub Initiative

The development plan is anchored on Proton City's established EV manufacturing, with the new Tanjong Malim Hi-Tech Park designed to attract further local and foreign direct investment.

What Is the Tanjong Malim Hi-Tech Park?

It is a new industrial park in the Muallim district, developed by Setia Awan Land Sdn Bhd, intended to be a cornerstone of Perak's automotive industry. The park is designed to attract investment that will plug local SMEs into the automotive supply chain, leveraging the adjacent Proton City and the AHTV ecosystem.

The state government's objective is to expand industrial activities in Muallim and Batang Padang to create jobs and provide opportunities for local companies. According to Menteri Besar Datuk Seri Saarani Mohamad, the development was announced at the park's launch and ground-breaking ceremony, marking a key step in the state's economic development strategy.

The park is a strategic project aimed at integrating local small and medium enterprises (SMEs) into the national automotive supply chain by leveraging Proton City's infrastructure and the broader AHTV initiative.

How Will This Hub Create Jobs and Opportunities for Perak?

This project aims to create a significant number of jobs in Muallim and Batang Padang, particularly for skilled workers, and to address the historical outflow of talent from Perak by providing local career options. As a direct outcome, the surge in employment is expected to drive demand in ancillary sectors such as housing, business premises, logistics, and transportation.

This increased economic activity is intended to open up opportunities for small and medium enterprises (SMEs), particularly in maintenance, food services, retail, and accommodation. Datuk Seri Saarani Mohamad stressed that the success of the investment should be measured not just by the capital value but by the number of jobs created and the extent of local business involvement. He also called on institutions of higher learning and private colleges to offer Technical and Vocational Education and Training (TVET) programs aligned with industry requirements.

"Kerajaan boleh menyediakan dasar dan infrastruktur, namun pembangunan ekosistem industri secara menyeluruh memerlukan penyertaan sektor swasta yang bersedia melabur."

— Datuk Seri Saarani Mohamad, Menteri Besar Perak (translated: The government can provide policies and infrastructure, but the development of a comprehensive industrial ecosystem requires the participation of the private sector willing to invest.)

What is the Impact of PROTON’s Move to Proton City?

PROTON’s relocation of its operations from Shah Alam to Proton City, including the commencement of EV production, is a foundational element of Perak's car hub, creating a significant anchor for the local automotive ecosystem. This move, combined with the KLK Tech Park, is a part of the Automotive High-Tech Valley (AHTV) framework, which forms the basis of a comprehensive industrial cluster in the region.

The presence of PROTON as an anchor industry is intended to provide a stable foundation for attracting suppliers and related businesses. By situating the new Tanjong Malim Hi-Tech Park in this context, the state aims to offer a complete ecosystem—from manufacturing to R&D—making the area a competitive destination for automotive investment.

The integration of PROTON City and the KLK Tech Park establishes AHTV as a comprehensive regional force intended to make Muallim and Batang Padang a competitive destination for automotive investment.

What Does the Muallim Speed-Lane (M-SL) and InvestPerak Do for Investors?

The state provides a free consultation service through InvestPerak and the Muallim Speed-Lane (M-SL) approval channel to expedite the business permit process. These services are meant to offer a streamlined path for investors, reducing bureaucratic hurdles in Muallim and Batang Padang.

Exco Loh Sze Yee explained that state-level incentives, such as land premiums and quit rent, are determined on a case-by-case basis, taking into account the investment value and types of jobs offered. He noted that some approvals have been obtained within one month or even as quickly as two weeks, depending mainly on the completeness of submitted documents, while federal incentives remain standard nationwide via MITI and MIDA.

State investment approval times vary but can be achieved in as little as two weeks through the Muallim Speed-Lane, provided that the investor's documentation is complete.

How Will the Automotive Hub Address the Brain Drain in Perak?

The development of Proton City and the Tanjong Malim Hi-Tech Park is expected to provide more career choices within the state, targeting the reduction of out-migration by educated and skilled youths. This is a direct response to a study by the Institut Darul Ridzuan, which found that at least 110,000 talented youths from Perak migrated to Kuala Lumpur and Shah Alam between 2011 and 2020 to seek work, including in the automotive sector.

The state government believes that creating high-value jobs locally is critical to reversing this trend. By providing more employment options, the hub aims to retain the state's workforce and sustain its economic growth by keeping talent within its borders.

This development is designed to stem Perak's talent flight by offering competitive, technology-oriented jobs locally, directly targeting the 110,000 youths who left for KL and Shah Alam between 2011 and 2020.

Who Will This Hub Support in Malaysia?

This initiative is a state policy that will primarily benefit Malaysian industrial players, SMEs, and job seekers, particularly those in the northern and central regions. It is designed for companies looking to participate in the automotive supply chain, workers seeking technical and professional careers in the sector, and ancillary businesses such as logistics, food service, and retail.

The project is a national-scale economic development effort with specific relevance to the communities in Muallim and Batang Padang. The influx of workers is expected to boost the local economy but will require planning for increased demand for housing and transport, a critical consideration for the local authorities involved.

This project represents a shift in industrial geography for Malaysia, designed to distribute economic opportunities beyond the Klang Valley and offer a comprehensive industrial lifestyle for workers outside of Kuala Lumpur.

Common Questions

What specific incentives does Perak offer to investors in the automotive sector?

Perak offers case-by-case incentives on state-controlled matters like land premiums, which vary based on the investment's value and job creation. This is supported by free, faster approval via InvestPerak's advisory and the Muallim Speed-Lane, with approvals possible in as little as two weeks.

Does the "Muallim Speed-Lane" reduce only state processing time or federal too?

The Muallim Speed-Lane (M-SL) targets approvals under the state's jurisdiction, such as land and local council permits. Federal incentives and approvals are standardised nationwide through MITI and MIDA, so processing times there are not subject to the state's fast-lane mechanism.

Why did the state establish this hub in Muallim and Batang Padang specifically?

The location was chosen because it houses Proton City and the KLK Tech Park, which form the core of the Automotive High-Tech Valley (AHTV). The existing infrastructure and industry anchor made it a strategic location to build a complete automotive ecosystem.

Sources and Methodology

This article is based entirely on the provided source material from Careta, specifically covering statements made by Perak officials on 23 September 2026. The original report references the Berita Harian newspaper dated 21 September 2026, and a study by Institut Darul Ridzuan. Direct quotes have been translated from Malay to English for this report.

This article was last updated on 24 May 2025. Information specific to Malaysia was verified against the source material provided.