KUALA LUMPUR: Building and construction materials supplier Projek Garuda Sdn Bhd has inked a memorandum of understanding (MoU) with one of South Korea’s largest road safety products manufacturer Shindo Industry Co Ltd to develop and manufacture its products in Malaysia.
Projek Garuda director Patrick K.K. On said it would jointly manufacture Shindo’s products in Sabah and Sarawak with the possibility of exporting them to the Asean region.
“Tentatively we are looking to set up a manufacturing plant in Sabah and Sarawak due to their close proximity to Cambodia, Thailand, Indonesia, Singapore and Vietnam.
“In line with the growth in the development of Malaysian roads and emphasis on safety, we think that it is timely to diversify into this business,” On said after witnessing the exclusive partnership agreement signed between Shindo and Projek Garuda at G-Fair KL 2016 here yesterday. Also present were Works Minister Datuk Seri Fadillah Yusof, Projek Garuda chief executive officer Leong Khai Ric, Gyeonggi vice-governor for administrative affairs Yang Bok-Wan and Gyeonggi small and medium business centre chief executive officer and president Yun Jong Il.
On, who is also the regional director for Gyeonggi Business Centre Kuala Lumpur, said the parties had not firmed up the investment cost for the deal, but said that it would be substantial.
“Shindo has an annual turnover of US$100mil every year and is a leading South Korean manufacturer of road safety products such as roller barriers, anti-glare systems and solar-powered highway indicators,” he said.
“This exclusive partnership allows for the transfer of Shindo’s technology, know-how and marketing capabilities and we can leverage on the Asean Free Trade Area,” he noted,
Meanwhile, Fadillah said with South Korea being Malaysia’s seventh largest trading partner, such partnerships would boost trade economy and spur bilateral relations between the two countries.
He welcomed the tie-up and added that innovations such as roller barriers, coated guard rails, anti glare systems and solar powered highway indicators would reduce the number of accidents in Malaysia.
“South Korean products are also getting popular and acceptable worldwide.
“This is an opportunity for us as our strength is in halal development since Malaysia’s halal certification is recognised worldwide,” he noted.
Small and medium enterprises (SMEs) in Malaysia contributed about 36% to Malaysia’s gross domestic product and this is expected to go up to 41% by 2020.
Tthe G-Fair brought in about 68 SMEs from South Korea and is expected to attract at least 2,000 trade visitors this year.