Padang Terap, Kedah – In a powerful demonstration of Malaysia’s growing appeal as a high-value manufacturing destination, Prinx Chengsan Holdings’ wholly-owned subsidiary, Prinx Tire (Malaysia) Sdn. Bhd. (PTM) marked a key milestone in Malaysia’s rubber product manufacturing landscape with the ground breaking of its state-of-the-art tire manufacturing facility at Kedah Rubber City (KRC). The ground-breaking ceremony on 18 November 2025, marks a transformative moment for Malaysia’s rubber industry and validates KRC’s vision as the nation’s first dedicated rubber industrial park.
Officiated by YB Dr. Haim Hilman Abdullah, Kedah State Executive Councillor for Industry and Investment, the ceremony marks the culmination of sustained strategic engagements—initiated through a lead from MIDA and strengthened via close collaboration with NCER. The RM2.6 billion investment over 15 years positions Prinx Chengshan as KRC’s anchor tenant, marking a significant milestone that underscores the park’s readiness to host global players and further elevates NCER’s standing in the regional rubber products landscape.
KRC occupies a unique position in Malaysia’s industrial ecosystem. Spanning 1,244 acres, this thematic park is designed to accelerate the development of the country’s rubber industry by leveraging its strategic location within the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) Rubber Belt. The park’s proximity to the Malaysia-Thailand border gateway offers investors seamless access to regional rubber supplies and fast-growing ASEAN markets, forming what officials describe as a ‘Rubber Corridor’ linking major rubber-producing economies.
Prinx Chengshan’s commitment to Malaysia represents one of the most significant investments in the country’s rubber product manufacturing sector in recent years. The project’s substantial scale and long-term horizon reflect strong confidence in KRC’s strategic value and the competitiveness of Malaysia’s rubber ecosystem:
Prinx Chengshan’s advanced tire manufacturing facility is targeted to be fully operational by Q1 2027.
The Prinx Chengsan facility represents more than just a manufacturing plant. The company plans to implement Industry 4.0 technologies, including advanced automation and a dedicated R&D centre, transforming it into an intelligent manufacturing hub. The 213,000-square-meter built-up area will incorporate smart manufacturing processes, automation systems, and an intelligent warehouse to ensure product quality, operational efficiency, and sustainability.
Notably, the investment extends beyond Prinx Chengshan’s immediate operations. According to PTM President Che Hongzhi, “a number of vendors under the Prinx Chengshan Group have committed investments in KRC as well”. This multiplier effect is expected to attract supporting industries and create a comprehensive ecosystem around tire manufacturing, potentially including advanced materials, machinery, and service providers.
The broader economic implications of this anchor investment are substantial. Within 15 years of operating at full capacity, KRC is expected to contribute RM14.7 billion to Malaysia’s Gross Domestic Product and create 14,500 job opportunities. The PTM facility alone will account for approximately 1,056 of these positions, with state officials anticipating that 80% will be filled by local talent, ensuring maximum local benefit and knowledge transfer.
Kedah Rubber City’s development has been strategically planned to serve the specific needs of rubber-based industries. The park identifies eleven key clusters for development, creating natural synergies between tenants:
KRC’s infrastructure readiness further enhances its appeal to manufacturers. Current utilities availability includes:
The utilities readiness ensures investors can commence construction and operations without unnecessary delays.
The ground breaking of Prinx Chengshan’s facility signals the rise of a new regional hub for high-value rubber products within ASEAN. For investors seeking strategic entry into the region’s rubber value chain, the opportunity to participate alongside an established global leader is both rare and timely.
Dato’ Mohamad Haris Kader Sultan, Chief Executive of the Northern Corridor Implementation Authority (NCIA), highlighted this momentum: “Prinx Chengsan’s decision to establish its facility here will act as a catalyst for a new wave of high-value investments, positioning KRC as a leading rubber industry hub in ASEAN”.
“The convergence of strategic location, established infrastructure, available incentives, and proven investor confidence creates an unparalleled value proposition for related industries.”
To ensure a seamless investment journey, NCER offers FaCi@NCER, a dedicated facilitation service that acts as a single point of contact for investors. This support links businesses with relevant state agencies, utility providers, and regulatory bodies to streamline setup and resolve operational issues, such as labour challenges.
With the various government supports including tax incentives offered through MIDA, and NCER providing on-ground facilitation, the pathway to investment in KRC has never been more compelling. Now is the time to position your company at the forefront of ASEAN’s rubber industry transformation.
For more information on investment opportunities in Kedah Rubber City (KRC), visit NCER’s website or contact +604 502 0708 or [email protected].
Disclaimer: All figures in this article are under the purview of NCER and are for informational purposes only. For specific details regarding investments and initiatives, please refer to official NCER communications.