PETALING JAYA: PCCS Group Bhd will enter a joint venture (JV) to diversify into used car financing and insurance business.
In a statement, the garment manufacturer said it had entered into a shareholders agreement with See Kok Wah to form the JV company that would be known as Southern Auto Capital Sdn Bhd, where its principal business would be of used vehicles financing and insurance within Johor and Melaka.
The JV company would commence its business on May 1.
PCCS said it would hold an 80% stake in the JV company, and would be investing RM4mil in this new business. See would hold the remaining 20% and put in capital of RM1mil.
PCCS noted See is the adviser of 365 Capital Sdn Bhd, a company principally engaged in the business of used cars financing, and has extensive expertise, know-how, experience and network in successfully undertaking such business.
The new venture is part of PCCS’ plan to diversify its businesses and ultimately to bring resilience to whole business framework of the group.
“With the current enormous used car market especially private car transactions with 400,000 units a year, the company expects positive contribution from the business within a year, ” said PCCS founder and group executive chairman Chan Choo Sing.