The 50:50 JV, called Energy Absolute Malaysia, is also looking at setting up a manufacturing plant in Malaysia over the longer term in the second phase of its plans, said CFM managing director Datuk Justin Lim.
KUALA LUMPUR: The Main Market-listed Computer Forms Malaysia Bhd
’s (CFM) joint venture (JV) with Energy Absolute Thailand Public Co Ltd will import 200 electric buses for use in Malaysia.
The 50:50 JV, called Energy Absolute Malaysia, is also looking at setting up a manufacturing plant in Malaysia over the longer term in the second phase of its plans, said CFM managing director Datuk Justin Lim.
Energy Absolute, which has a market capitalisation of around 380 billion baht or RM45bil, is among Thailand’s Top 10 public-listed companies and is known for its renewable energy business in that country.
“It will not only be limited to buses but also electric ferries and trains. We are also looking at turning the airport into a green city airport where things like baggage handling system will go green.
“There are a few phases to this partnership,” Lim said at a briefing after the signing ceremony here yesterday.
The signing was witnessed by International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
“We are also planning to bring Energy Absolute’s products into Malaysia in the next two to three months. The initial capital of this JV is US$4mil (RM17.59mil),” Lim said, adding that the factory would be set up either in Selangor, Negri Sembilan or Melaka.
“We plan to do so within 12 months after this (commencement of operations),” he said.
Lim noted that CFM, which started off as an information technology-based company, is diversifying into the electric vehicle (EV) sector as its core business has become very competitive.
According to the company, it is diversifying to drive earnings and revenue growth for shareholders.
The partnership will see CFM and Energy Absolute planning to produce lithium-ion batteries and investing in energy storage systems and charging stations to support Malaysia’s EV ecosystem, a statement issued by both companies said.
The signing ceremony also seals the RM5bil investment pledge to set up a Malaysian manufacturing plant by the JV company to handle EV and renewable energy projects using the core competencies of both companies.
“We want to duplicate what we are doing in Thailand by assisting CFM to do it here as well.
“With our technology, we are able to charge large EVs in 50 minutes. Once the volumes in Malaysia are sizeable, we would like to have local production here as well,” Energy Absolute chief executive officer Somphote Ahunai said.
“We are focused on making commercial EVs. The initial costs of an EV (compared to an internal combustion engine) are more expensive, but it is cheaper when calculated throughout the lifespan of the vehicle which include maintenance costs,” Ahunai pointed out.
Meanwhile, Tengku Zafrul said the government is committed to driving efforts to attract more EV investments to meet the national target of 15% total industry volume (TIV) for EVs and hybrids by 2030 and 38% TIV by 2040.
“The biggest contributor to carbon emissions is from the transport sector. The momentum of trade is good and hopefully this will be sustained moving forward.
“Another factor is the reopening of China, which would help reduce disruptions in the supply chain and we would stand to benefit from this,” he said.
