PETALING JAYA: Malaysian conglomerate DRB-Hicom Bhd
is studying the setting up of a vehicle assembly plant in Algeria as it looks to North Africa’s growing automobile market for overseas expansion, according to Malaysia’s Ambassador to Algeria Datuk Rizany Irwan Muhamad Mazlan.
This proposed venture supports Malaysia’s efforts to develop industrial cooperation with Algeria and aligns with the Algerian government’s local manufacturing drive, he told Bernama in Hyderabad.
DRB-Hicom top executives, including from the group’s brands Proton and Modenas, recently held talks with Algerian officials about their planned business projects.
“The visit’s main purpose was to conduct market assessments, explore avenues for industrial cooperation, and gain insights into Algeria’s regulatory and tax frameworks for the industry.
“DRB-Hicom has agreed to undertake a feasibility study for a local assembly facility, and Proton is willing to support technology transfer and skill training for Algerian personnel,” he said.
Algeria’s Industry Ministry secretary-general Kheireddine Benaissa highlighted Algeria’s pro-business policies during a meeting with the Malaysian delegation.
He explained that Algeria offers a 10-year tax break during project implementation and a five-year corporate profit tax exemption post-operation tied to a 30% local integration rate within five years.
Algerian Investment Promotion Agency director-general Omar Rekkache welcomed the potential entry of Proton cars and Modenas motorcycles into his country and promised to support the Malaysian companies throughout the investment process, Rizany Irwan said.
“Algeria’s focus on domestic automobile manufacturing presents an exceptional opportunity for the Malaysian brands.
“They will also gain favourable access to regional markets via Algeria’s free trade agreements,” he said. Among DRB-Hicom’s private-sector engagements, the Algerian vehicle distribution company Sodivem expressed interest in a joint venture with Modenas.
