Business Development Asia LLC
South East Asian Automotive News
ISSUE 3, OCTOBER 1997
MALAYSIA
Diversified Resources Bhd (DRB) will launch the first Malaysian-made truck on October 18th produced by a new subsidiary, Malaysian Truck and Bus Sdn Bhd (MTB). The RM250m (US$86m) project is aiming to produce 10,000 medium- to heavy-duty trucks during the first year of production and to double this by the third year. DRB and HICOM each hold a 49% stake in MTB, with the remaining equity held by Isuzu Motors of Japan. (September 2nd 1997)
Perodua's Managing Director, Datuk Abdul Rahman Omar, announced a RM2.3bn (US$790m) project, dubbed Countdown 2000, to upgrade its operations to manufacture a totally Malaysian car by the year 2001. Since 1994, Perodua has raised local content from 51% to 75%. He announced that Perodua will work with a number of British, German, Italian and Australian companies to upgrade its expertise, especially in design. RM700m (US$240m) will be dedicated to plant renovation and construction to meet the production target of 250,000 cars a year. (August 28th 1997)
Perodua has set up a JV with Ingress Engineering Bhd and Ramdawi Sdn Bhd to manufacture and assemble "door-in-white" car doors which are currently imported from Japan. Production is targeted for September 1998 with full capacity of 880,000 doors a year in mid-1999. (September 4th 1997)
Proton, Malaysia's national car maker, will be hit by the depreciation of the Ringgit against the Yen. This warning was one of the first acknowledgments by a Malaysian corporate leader that the Ringgit's decline against the US Dollar and other main currencies was affecting results. Proton has achieved approximately 80% local content but is still reliant on imported components, many of which are manufactured by Japan's Mitsubishi. (August 8th 1997)
SsangYong, the Korean automobile manufacturer, plans to assemble its four-wheel drive vehicles locally. SsangYong aims to increase the number of vehicles sold in the Malaysian market to 1,000 units from 360 units per annum, the current limit for CBU vehicles that can be brought into Malaysia. The company will assemble its vehicles at the Pekan automobile plant owned by Automotive Manufacturers Malaysia which is part of the DRB-Hicom Group. (September 22nd 1997)
Terengganu state, on Malaysia's less industrialised peninsular east coast, is being promoted as a center for automotive industries by the State Government. Since the opening of the KLLT Plastic Industries Sdn Bhd and KLLT Marketing Sdn Bhd plants, the State has emphasized Terengganu's strategic location and infrastructural facilities. (September 4th 1997)
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