KUALA LUMPUR: DRB-Hicom Bhd
has signed memorandums 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.
The group said in a filing with Bursa Malaysia yesterday that it has entered into a MoU with the Malaysian Investment Development Authority and Zhejiang Geely Holding Group Co Ltd to explore potential areas of cooperation and collaboration to promote investments in the development of AHTV.
It said the agreements’ objectives, effective for a period of two years with effect from the date of signing, are also to foster growth, capabilities and competitiveness of the Malaysia automotive industry
“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 in Asean.
“The plan is to transform Tanjung Malim, through the development of AHTV, into a global automotive hub, focusing on the production of next generation vehicles and high-tech automotive components,” the group said.
DRB-Hicom said the transformation of AHTV into a smart manufacturing and export base for the global supply chain of complete vehicles and parts would include the enhancement of the capabilities of local suppliers to participate in the localisation of key components.
This would encompass the transformation and upgrading of the local supply chain through improvements in the technical and cost competitiveness of local suppliers.
“The MoUs are 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,” the group said in its filing.
At the same time, DRB-Hicom also signed an MoU with the Malaysia Automotive Robotics and IoT Institute and Geely to explore areas of cooperation and collaboration in the areas of research and development 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
