MAI: Quality vendors needed for car production

  • Nation
  • Monday, 13 Aug 2018

PETALING JAYA: Work between Malaysia and Indonesia to jointly produce the first Asean vehicle will only start when component vendors in both countries are strong and reliable, said the Malaysia Automotive Institute (MAI).

“For the project to take off, both countries need to strengthen their vendors,” said MAI chief executive officer Datuk Madani Sahari.

“That is the fundamental part of this industry.”

He said 80% of the components to produce the vehicle would have to be supplied by vendors in both countries.

“Their capability is of utmost importance to ensure production success,” said Madani.

It was reported that Malaysia and Indonesia had signed a Memo­randum of Agreement (MoA) to begin cooperation on the improvement of the automotive manufacturing workforce and supply chains with the aim of learning to fully produce components in the region and establish a new brand.

The MoA, signed in Jakarta on Friday, charges both the MAI and the Indonesian Automotive Institute with running the venture.

The signing was the result of bilateral talks between Prime Minister Tun Dr Mahathir Moha­mad and Indonesian Presi­dent Joko Widodo in Bogor in June where both leaders agreed for the joint venture project to be revived.

The project to manufacture cars between the two countries was first proposed in 2015.

Madani said Malaysia had 641 vendors with over 100 of them capable of producing global standard Tier 1 components.

Statistics show that Indonesia has more than 1,000 vendors, mostly in Tier 2 and 3.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Next In Nation

Govt looking into easing restrictions for fully vaccinated individuals, says Khairy
Flag error rectified
Mobile truck: KL Wholesale Market workers relieved to be vaccinated
Covid-19: Health Ministry detects another 22 new cases involving variants of concern
Covid-19: Phase three of national immunisation programme in Klang Valley to start on Monday (June 21)
Allow TCM services to operate during lockdown, urges MCA
Covid-19: 19 clusters detected, 11 linked to workplaces
Student seriously injured in accident while out to get Internet access for PdPR session
Covid-19: 60 fatalities bring death toll to 4, 408
Give priority to locals when hiring teachers in Sabah, says union

Stories You'll Enjoy