DRB-Hicom and Geely ink MOUs on Tanjong Malim

KUALA LUMPUR: The development of the Automotive Hi-Tech Valley (AHTV) in Tanjong Malim, Perak was given a further boost after DRB-Hicom Bhd and Zhejiang Geely Holding Group Co Ltd recently signed two Memorandums of Understanding (MOUs) towards transforming the AHTV into a global automotive hub for next generation vehicles (NxGV) and Energy Efficient Vehicles (EEV).

The first MOU, signed with the Malaysian Investment Development Authority (MIDA), aims to explore potential areas of co-operation and collaboration to promote investments specifically in the development of AHTV, with the objective of fostering growth, capabilities and competitiveness of the Malaysia automotive industry.

Key areas of collaboration include promoting the transformation of Malaysia’s automotive industry and Industry 4.0 to help Malaysia become a leading country for EEVs in Asean.

This aims to transform AHTV into a global automotive hub focussing on the production of NxGVs, as well as a smart manufacturing for hi-tech automotive components and an export base for the global supply chain for complete vehicles and parts.

Other areas of collaboration include attracting and hosting global automotive supply chain players and establishing a complete eco-system within AHTV which include enhancing capabilities of local suppliers to enable them to participate in the localisation of key components, at the same time assisting in transforming and upgrading of the local supply chain.

The parties will also create communication and discussion with related stakeholders on investment, trade and industrial policy, as well as to accelerate the support of promotion and application of energy efficient vehicles in Malaysia and build an EEV ecosystem.

Meanwhile, the second MOU, signed with the Malaysia Automotive Robotics and IoT Institute (MARii), will see the parties exploring areas of collaboration in Research and Development (R&D) and Talent Development for AHTV.

In the area of R&D, the scope of cooperation includes building shared R&D and testing facilities focusing on vehicle R&D, manufacturing, supply chain and NxGV testing capabilities which shall be recognised across the Asean region.

This will involve amongst others, the establishment of the National Testing and Homologation Centre at AHTV, aimed to be Malaysia’s national level tropical climate, autonomous driving and EEV testing and homologation centre, and designated as the country’s testing and certification centre.

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

In the area of talent development, the cooperation includes developing an AHTV automotive talent training programme focusing on NxGV and smart manufacturing, nurturing talent in R&D, smart equipment, manufacturing and marketing services together with collaboration with institutions from China and Malaysia.

This includes, amongst others, establishing national standards for Automotive TVET and SKM certification, deploying an automotive apprenticeship programme, creating modules for high schools up to universities, and conducting certification programmes for digitalisation and I4.0 proficiency in the manufacturing and supply chains.