KUALA LUMPUR (Oct 26): Malton Bhd (KL:MALTON) has scrapped plans to explore Malaysia’s electric motorcycle market with China-based manufacturer Dongguan Benling Vehicle Technology Co Ltd (BENLG), citing a lack of progress by its prospective partner.

In a bourse filing on Monday, the property group said the nine-month memorandum of understanding (MOU) with BENLG expired on Oct 25 and would not be pursued further.

“In view of the lack of progress by the counterparty, the board has decided not to pursue further with the MOU,” Malton said.

The MOU was signed on Jan 26 to establish the terms of a potential collaboration as BENLG explored the possibility of entering Malaysia’s electric motorcycle market.

BENLG manufactures electric motorcycles and has production bases in Tianjin, Wuxi and Taizhou in China. The company also has four international branches in Gurgaon, India; Manila, the Philippines; Bangkok, Thailand; and Jakarta, Indonesia.

Malton is controlled by property tycoon Tan Sri Desmond Lim Siew Choon, who holds an indirect stake of 33.64% through Malton Corp Sdn Bhd and direct stake of 3.95%. 

Shares of Malton closed unchanged at 20 sen on Monday, valuing the group at RM114.7 million. The stock has fallen more than 37% year to date.