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Chinese investors eye major aluminium production expansion in Sarawak

A significant investment proposal could substantially boost aluminium-based manufacturing capacity in Sarawak, with potential applications across construction, automotive and industrial sectors. The development aims to establish new pathways into global markets.

LSN Malaysia · 14 October 2026

Chinese investors eye major aluminium production expansion in Sarawak

Chinese investors have expressed interest in undertaking a large-scale aluminium production venture in Sarawak, according to Deputy Prime Minister Zahid Hamidi. The proposed investment would significantly expand the state's capacity to manufacture aluminium-based products for diverse industrial applications. The project represents a strategic opportunity to strengthen Sarawak's position in regional and international manufacturing supply chains. Potential end-uses for expanded aluminium production include components for the construction sector, automotive industry and various other industrial applications. The venture could position Sarawak as a key production hub, enabling Malaysian manufacturers to tap into growing global demand for aluminium products. The investment proposal is expected to create employment opportunities and contribute to economic development in the state. Authorities in Sarawak are evaluating the investment framework and regulatory requirements to facilitate the project's development.