KOTA KINABALU: Sabah is poised to become a commercial vehicle assembly hub for the Borneo region following a strategic partnership between a Chinese and local company here.
The collaboration between Chinese automotive manufacturer Dongfeng and Sabah-based Kim Teck Cheong Consolidated Berhad (KTC) is expected to create an estimated 1,000 jobs and strengthen the state’s industrial and logistics sectors.
This includes plans to establish an assembly plant in Sabah, which is envisioned as a strategic hub serving markets across Sabah, Sarawak and Indonesia.
The proposal was discussed during a video conference between Dongfeng Motor executives based in Wuhan, China and the Sabah delegation in Dalian led by Sabah Deputy Chief Minister III Datuk Ewon Benedick.
During the video conference, Dongfeng’s senior management formally sought the Sabah government’s support and facilitation for the proposed joint venture assembly plant with KTC in the state.
Ewon, who is also the state Minister of Industrial Development, Entrepreneurship and Transportation, welcomed the proposed investment, adding that the state government had proposed the Kota Belud Industrial Park as a potential site for the assembly plant.
“The proposed assembly plant will not only create employment opportunities for local communities but also facilitate technology transfer, skills training and talent development in the automotive industry,” said Ewon.
KTC Managing Director Dexter Lau said the company had already secured RM30mil worth of purchases from Dongfeng as part of the initial phase of the collaboration.
He said Dongfeng, one of China’s largest vehicle manufacturers, is targeting a top-three market position in East Malaysia’s commercial vehicle sector within two years.
According to him, Sabah will enter a new phase of industrial development, focusing on the assembly of light trucks and heavy machinery to support the growth of businesses and the state’s logistics ecosystem.
He added that Dongfeng had committed to transferring technology and providing technical training to local workers to enhance Sabah’s automotive manufacturing capabilities.
Earlier, Dongfeng representatives said the company selected KTC as its strategic partner due to the group’s strong corporate capabilities and extensive logistics network throughout Malaysia.
