KUALA LUMPUR: DRB-Hicom Bhd
has signed two memoranda of understanding (MoUs) to promote investments, explore areas of research and development (R&D) and talent development in the Automotive High-Tech Valley (AHTV) in Tanjung Malim, Perak.
It said in a filing with Bursa Malaysia today that the group has entered into a MoU with the Malaysian Investment Development Authority (MIDA) and Zhejiang Geely Holding Group Co Ltd (Geely) to explore potential areas of cooperation and collaboration to promote investments in the development of AHTV.
It said the agreement’s objective was also to foster growth, capabilities and competitiveness of the Malaysia automotive industry and it shall be effective for a period of two years with effect from the date it is signed.
“The parties intend to collaborate to promote the transformation of Malaysia’s automotive industry, to propel Malaysia to become a leading country for energy efficient vehicles (EEV) in ASEAN.
“It also plans to transform Tanjung Malim, Perak through the AHTV development, into a global automotive hub, focusing on the production of next generation vehicles (NxGV) and high-tech automotive components,” it said.
DRB-HICOM said the transformation of AHTV as a smart manufacturing and export base for the global supply chain system of complete vehicles and parts will include the enhancement of the capabilities of local suppliers to participate in the localisation of key components.
This encompasses the transformation and upgrade of the local supply chain through continuous improvements in technical and cost competitiveness of local suppliers.
“The MoU is not expected to have any material effect on the earnings per share, net assets per share or gearing of DRB-HICOM for the financial year ending Dec 31, 2024,” it said.
At the same time, DRB-HICOM also entered into a MoU with the Malaysia Automotive Robotics and IoT Institute (MARii) and Geely to explore areas of cooperation and collaboration in the areas of research and development (R&D) and talent development in AHTV.
The MoU will contribute to the enhancement and transformation of Malaysia’s automotive industry and will come into effect on the date of signing for a period of three years.
“In respect of R&D, the parties shall discuss and cooperate in areas relating to development of a R&D testing centre for energy efficient vehicles and automotive driving, as well as support the development of AHTV testing facilities as a national level “best in class” vehicle testing centre.
“Talent development is a critical component of AHTV, with discussions focused on developing training programmes on next generation vehicles and smart manufacturing,” it added. - Bernama
