THE Government approved 57 automotive-related projects involving investments totalling RM659mil from January to September this year, Deputy International Trade and Industry Minister Datuk Ahmad Husni Hanadzlah said.
He said domestic investment amounted to RM514.7mil while foreign investments totalled RM144.3mil and of the total projects, 29 were new projects while the remaining ones were expansion or diversification projects.
Husni said of the total, RM392.2mil were for 35 projects involving the manufacture of automotive parts and components.
“Some Malaysian automotive component manufacturers have undertaken cross border investments in Asean countries, mainly Thailand and Indonesia, to expand their business,” he said at T&K Autoparts Sdn Bhd's 12th anniversary celebration in Shah Alam yesterday.
“Multi-sourcing at the global level of the supplier is inevitable since the industry demands high quality components at competitive prices,” he said, adding that automotive component manufacturers should take advantage of the well-established local automotive infrastructure and the incentives provided by the Government to strategise their operations in order to penetrate the regional and global markets.
Husni also urged existing component manufacturers to consider seeking strategic partners locally and from abroad to enable them to move up their ranks to become subcontractors for larger firms.
He said that to assist small and medium-sized enterprises in upgrading capabilities and meeting designing standards, the Government had approved five applications for soft loans under the ICT Adoption Scheme implemented by Malaysian Industrial Development Finance (MIDF) valued at RM940,670.
As at Sept 30, MIDF had approved 299 financing facilities for an aggregate value of RM334.8mil to companies in the automotive industry.
Of the country's more than 350 component manufacturers, 234 are Proton vendors and 135 are Perodua vendors.
Currently, 38 component manufacturers export their products. There are 10 major foreign companies manufacturing component parts in Malaysia.