The construction would be part of a reorganisation of its Malaysian operations, under which the existing factory would stop building passenger cars and focus on commercial vehicles, Toyota said in a statement.

The new plant, to be located in Klang, in the state of Selangor, will begin operations in early 2019. It will employ new production technologies such as compact painting booths that are also set to be introduced at Toyota's other new plants, including in Mexico and China, it said.

(Reporting by Chang-Ran Kim; Editing by Muralikumar Anantharaman)