KUALA LUMPUR (Dec 16): DRB-Hicom Bhd (KL:DRBHCOM) said has inked memoranda of understanding (MOU) with two government bodies, namely with Malaysian Investment Development Authority (Mida) and Malaysia Automotive, Robotics and IoT Institute (MARii) to promote the enhancement and transformation of Malaysia’s automotive industry in the Automotive Hi-Tech Valley (AHTV) project in Tanjung Malim, Perak.

The agreements signed together with its joint-venture (JV) partner, China’s auto giant Zhejiang Geely Holding Group Co Ltd, were aimed at transforming AHTV into a global automotive hub, focusing on the production of next generation vehicles (NxGV) and high-tech automotive components, according to DRB-Hicom in a statement.

Under the agreement with Mida, which is effective for two years, the key collaboration was aimed at hosting global automotive supply chain players and establishing a complete ecosystem in Tanjung Malim, partly by upgrading the capability of local suppliers to participate in the localisation of key components.

As for the collaboration with MARii, DRB-Hicom said the parties intend to build shared research and development (R&D) and testing facilities focusing on vehicle R&D, manufacturing, supply chain and NxGV testing capabilities that will be recognised across Asean. 

This includes the establishment of the National Testing and Homologation Centre at AHTV, which will be designated as the country’s testing and certification centre for autonomous driving and EEV (energy efficient vehicle) testing.

In addition, the parties agree to develop local design capabilities and expertise in critical components such as electric motors, battery management system, and power distribution units with assistance from Geely Holding.

The three-year MOU with MARii also involves a talent training programme in collaboration with institutions from both China and Malaysia.

This includes the establishment of national standards for Automotive TVET (technical and vocational education and training) and SKM (Sijil Kemahiran Malaysia) certification, deploying an automotive apprenticeship programme, creating modules for education levels from high schools to universities; and conduct certification programmes for digitalisation and Industry 4.0 (smart manufacturing) proficiency in the manufacturing and supply chains.

The parties also aim to create communication and discussion with related stakeholders on investment, trade and industrial policy, and targets to transform AHTV into a smart manufacturing and export base for a global supply chain system of complete vehicles and parts.

At Monday’s noon closing, shares of DRB-Hicom were up one sen or 1% at RM1.01, giving it a market capitalisation of RM1.95 billion. Year-to-date, the stock has fallen 27.3%.