Zhejiang Geely Holdings Group’s massive investment points to steady economic growth for Malaysia.
JUST about three weeks ago, a personal letter was hand-delivered to Datuk Seri Anwar Ibrahim.
It was no ordinary letter as it came from Chinese billionaire entrepreneur Li Shufu, one of the most powerful men in the global automotive industry.
The Chinese company now owns the London Electric Vehicle Company as well, which makes London’s iconic black taxis, and plans are afoot to turn them into a high-volume, all electric brand.
In the 10-page letter to the Prime Minister, Li made a commitment of investing US$10bil (RM46bil) to turn its manufacturing plant in Tanjung Malim, Perak, into the region’s third largest auto city.
The letter, personally signed by Li, also included a detailed blueprint as an attachment.
That’s a colossal sum from Geely. More importantly, it’s a powerful signal to its confidence in the government’s economic direction.
Geely, which owns 49.9% of Proton with DRB-Hicom Berhad, certainly moves swiftly.
Anwar and Li had met at Geely’s headquarters in Hangzhou, China, on May 8, and as the two hit it off, the wheels turned fast and furiously, too.
The huge expansion will lead to more than just the creation of thousands of jobs in Tanjung Malim.
The announcement has received international attention, including from Reuters, Bloomberg, Bangkok Post, Singapore’s The Business Times and China Daily.
The investment will open a new chapter in Malaysia’s electric vehicle (EV) ecosystem, which encompasses the automotive and mobility value chain, from high-tech global research and development centres to related support services for Malaysia’s new energy vehicle industry.
Malaysia aims for EV usage to reach 38% by 2040, but with the demand set to increase, that process could be expedited. The prices of EVs are set to be competitive, which will benefit Malaysians.
But Geely is the big player here, as it already has a suite of EV cars to compete with US company Tesla and China-owned BYD.
China Daily reported that Proton was expected to launch at least one NEV (new energy vehicle) model a year with the help of Geely, with Li saying that it will train 5,000 NEV professionals with Proton to grow the Malaysian marque into a leading NEV player in Asean.
In fact, Malaysians are looking forward to seeing Geely’s premium EV brand, Zeekr, arrive in Malaysia.
The all-electric luxury car is already available for pre-order in Europe, particularly in Sweden and the Netherlands, as it joined the growing number of Chinese EV makers which have launched their vehicles in Europe.
There is also much talk that Geely Panda EV, which some say is called Proton X10, would be available for as low as RM35,000 to enable Malaysians to own a starter electric car.
The expansion by Geely in Tanjung Malim is a big leap forward in the production of EVs.
As investors’ confidence grows in Malaysia, the country needs to send the right messages, too. Going green in sustainability is obviously the way forward.
Already a subscriber? Log in
Get 20% OFF The Star Digital Access
Cancel anytime. Ad-free. Unlimited access with perks.
Wong Chun Wai
Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 35 years in various capacities and roles. He is now group editorial and corporate affairs adviser to the group, after having served as group managing director/chief executive officer. On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.
