Malaysian conglomerate DRB-Hicom Bhd with its joint venture partner Chinese automaker Zhejiang Geely Holding Group have inked memorandum of understandings (MOU) with two government bodies, namely with Malaysian Investment Development Authority (MIDA) and Malaysia Automotive, Robotics and IoT Institute (MARii) to promote the development of the Automotive High-Tech Valley (AHTV) project in the country.

DRB-Hicom said in a statement on Monday that the MOU with the MIDA is to explore potential areas of co-operation and collaboration to promote investments specifically in the development of the AHTV in Tanjung Malim, Perak, with the objective of fostering growth, capabilities and competitiveness of the Malaysia automotive industry.

The parties intend to collaborate and leverage on each parties’ capabilities and strengths to promote the transformation of Malaysia’s automotive industry, to propel Malaysia to become a leading country for energy efficient vehicles (EEV) in ASEAN, and to transform Tanjung Malim, Perak, through the AHTV development, into a global automotive hub, focusing on the production of next generation vehicles (NxGV) and high-tech automotive components.

The transformation of AHTV as a smart manufacturing and export base for the global supply chain system of complete vehicles and parts will include the enhancement of the capabilities of local suppliers to participate in the localization of key components, which encompasses the
transformation and upgrade of the local supply chain through continuous improvements in technical and cost competitiveness of local suppliers.

The development of AHTV is undertaken by AHTV Alliance Sdn Bhd, a joint venture company effectively held by DRB-HICOM (50.1 percent) and Geely (49.9 percent).

AHTV is to be developed into an international NxGV hub in Tanjung Malim, covering an extensive automotive and mobility solutions value chain, from a full-fledged high technology global research and development center, to a world class original equipment manufacturers original equipment manufacture (OEM) manufacturing cluster as well as supporting services and associated eco-system including logistics, training and learning institutions within a smart city.

DRB-Hicom and Zhejiang Geely have also entered MOU with the MARii for the purpose of exploring areas of cooperation and collaboration in the areas of research and development (R&D) and talent development as a global strategic project that contributes to the enhancement and transformation of Malaysia’s automotive industry.

The parties intend to collaborate in the areas of R&D and Talent Development to promote the enhancement and transformation of Malaysia’s automotive industry in AHTV.

In respect of R&D, the parties will discuss and cooperate in areas relating to development of a R&D testing center for EEVs and automotive driving, as well as support the
development of AHTV testing facilities as a national level “best in class” vehicle testing center.

Talent Development is a critical component of AHTV, with discussions focused on developing training programs on next generation vehicles and smart manufacturing.

The MOU is to promote further discussions between the parties with specific terms and conditions agreed upon to be set forth in a definitive agreement to be entered into between the parties.

MIDA is the principal agency to oversee and drive investment into the manufacturing and services sectors in Malaysia.

The agency assists companies which intend to invest in the
manufacturing and services sectors as well facilitates the implementation of their projects (excluding financial and utilities).

MARii is an agency that serves as the focal point, coordination centre and think tank for Malaysia’s automotive, robotics, and Internet of Things (IoT) industry, particularly to enhance technology, human capital, supply chain, and market outreach and after sales capabilities of all automotive stakeholders and ecosystems as well spurring the development and adoption of robotics and IoT applications.

Geely through its affiliates is principally involved in the business of automotive, upstream and downstream industrial chains, intelligent travel services, green transportation capacity, digital technology etc.

#Automotive #SmartManufacturing #EVInnovation #RDAutomotive #MalaysiaDevelopment