Melaka economy grows, manufacturing remains key contributor

MELAKA: Melaka recorded a gross domestic product (GDP) of RM50.3 billion in 2025, with the manufacturing sector contributing 35.4 per cent to the state’s economy, said Chief Minister Datuk Seri Dr Ab Rauf Yusoh.

He said manufacturing remained one of the key drivers of the state’s economy, creating opportunities for companies such as EP Manufacturing Bhd (EPMB) to strengthen their capabilities and expand operations.

“Melaka has established industrial areas, modern infrastructure, good connectivity, a skilled workforce and a growing network of local suppliers.

“These give manufacturers the confidence to invest, innovate and grow in Melaka,” he said at the roll-off ceremony for the locally assembled GWM WEY G9 HEV and EC15S HEV at EPMB’s facility in Pegoh here today.

Rauf said EPMB had progressed from manufacturing automotive components to assembling complete vehicles, marking a significant development in the state’s automotive industry.

The company now assembles four Great Wall Motor (GWM) models, alongside vehicles for MG and XPeng, at its Pegoh facility.

He said the introduction of the two new hybrid models marked another step in EPMB’s manufacturing expansion, with the company targeting annual production of more than 30,000 vehicles.

“This is exactly the kind of progress we want to see in Melaka, with more investments, greater production capacity and, most importantly, more high-skilled job opportunities for our people,” he said.

He said the achievement was even more significant as locally assembled vehicles had begun reaching international markets.

“I was informed that more than 1,100 GWM WEY G9 vehicles assembled in Malaysia had been exported to Thailand and Indonesia, while the total number of GWM vehicles assembled in the country had surpassed 10,000 units.

“These figures demonstrate the growing competitiveness of our automotive industry. Building on this momentum, I hope the new hybrid models will reach more markets across Asean and eventually beyond the region,” he said.

Ab Rauf also welcomed EPMB’s plans to upgrade its facilities, including additional assembly stations and improved vehicle inspection and delivery capabilities to support future expansion.

He said the state government would continue to facilitate investments, strengthen coordination among government agencies and provide the infrastructure needed to support the next generation of mobility technologies.

Rauf later told reporters that the state government would continue to provide support and ensure smooth coordination to facilitate the growth of the electric vehicle industry.

“With the confidence shown by the company in establishing its factory in Pegoh, Melaka, this automotive industrial area is now growing rapidly.

“At the same time, we will help provide a skilled workforce to meet the needs of the automotive industry in Melaka,” he said.


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