Exports of auto parts, components to hit rm15b: Miti
Published on: Wednesday, January 16, 2019
By: Bernama
KUALA LUMPUR: The Ministry of International Trade and Industry (Miti) expects the exports of Malaysia’s automotive parts and components to reach RM15 billion by 2020.
Its Deputy Minister, Dr Ong Kian Ming (pic) said the export growth would be driven by rising global demand and higher exports of locally made cars, including Proton.
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“Proton’s recovery plan and expansion into more Asian markets could be a major contributor to the export growth,” he said at the collaboration agreement exchange ceremony between Proton vendors and overseas partners here,Tuesday.
Proton Chief Executive Officer Dr Li Chunrong and Deputy Chief Executive Officer Datuk Radzaif Mohamed were present.
Ong said the exports of parts and components exceeded RM12 billion from RM11.6 billion in 2017.
On the collaboration between Proton’s vendors and foreign counterparts, Ong said the move was to enhance Proton vendors’ capabilities in line with technology advancement of Proton cars.
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He said the collaboration involved five local and five foreign vendors with an initial investment of RM47 million.
“The collaboration is expected to create about 450 jobs in the automotive industry ranging from assembly to design engineering that require highly-skilled workers,” he said.
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Meanwhile, Li said Proton’s vendor development programme is gathering pace and the company has been working hard on its matchmaking activities to find the best alliances that would benefit all vendors, the local economy and Proton as well,” he said.
He said Proton is convinced that building partnerships with overseas counterparts would made it possible for local vendors to reach a world standard for technology advancement and quality in a short time frame.
“This will help establish a supplier base capable of meeting the technology and quality standards required for the next generation of Proton cars to be developed with Geely,” he said.
He said the vendors would supply parts to Proton’s manufacturing facility in Tanjung Malim, Perak which is currently undergoing plant expansion initiatives at a cost of RM1.2 billion.
He added that the facility is expected to be completed in the fourth quarter of this year and would roll off the first completely-knocked-down version of the X70, Proton first sport utility vehicle in collaboration with Geely.
The company plans to make new launches consisting of new and facelift models equipped with the latest technology every year, he said, adding that, “We wanted to grow fast in the international market and we hope that the government can support us.” – Bernama
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