MIDA Inks Game-Changing Auto Industry MOU with DRB-HICOM and Geely
A strategic partnership set to establish Malaysia as ASEAN’s hub for Next Generation Vehicles and Energy Efficient Vehicles
KUALA LUMPUR, 17 December 2024 – The Malaysian Investment Development Authority (MIDA) yesterday marked a significant milestone in Malaysia’s automotive industry transformation by signing a Memorandum of Understanding (MOU) with DRB-HICOM Berhad and Zhejiang Geely Holding Group Co. Ltd. The partnership aims to develop the Automotive Hi-Tech Valley (AHTV) in Tanjong Malim, Perak, advancing Malaysia’s position as ASEAN’s hub for Next Generation Vehicles (NxGV) and Energy Efficient Vehicles (EEV).
In the presence of the Prime Minister, YAB Dato’ Seri Anwar Ibrahim, the ceremonial exchange was held at the Malaysia International Trade and Exhibition Centre (MITEC), following the official signing at the Ministry of Investment, Trade, and Industry (MITI). The agreement was formalised by MIDA CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, DRB-HICOM Group Managing Director Tan Sri Syed Faisal Albar, and Geely Auto CEO Mr. Jerry Gan Jiayue.
Witnessing the occasion, YB Senator Tengku Datuk Seri Utama Zafrul Aziz, Minister of Investment, Trade, and Industry, remarked on the national significance of this collaboration, “The MIDA – DRB-HICOM and Geely MOU fulfils the objectives of both our National Automotive Policy (NAP) and New Industrial Master Plan 2030. This AHTV development further positions Malaysia as an automotive hub in ASEAN, while also catalysing ASEAN’s electric vehicle revolution, particularly in high-tech and energy-efficient mobility solutions. This partnership reflects Malaysia’s readiness to not only tech up, but also lead the region’s transition to sustainable mobility, while equipping our workforce with the right skills to elevate Malaysia’s overall productivity.”
Key Areas of Collaboration under the MOU
The partnership with MIDA emphasises strategic investments and the establishment of a comprehensive ecosystem to position AHTV as a hub of automotive innovation in ASEAN. The key focus areas include:
Advancing Industry 4.0 and Automotive Transformation
- Promoting the transformation of Malaysia’s automotive industry to position the country as a leader in EEV production within ASEAN.
- Supporting the development of AHTV into a hub for NxGV manufacturing and high-tech automotive components.
Building a Sustainable and Inclusive Ecosystem
- Firstly, enhancing the capabilities of local suppliers to participate in the localisation of key components and integrate into global supply chains, and ;
- Attracting global automotive supply chain players to establish a comprehensive ecosystem at AHTV.
Facilitating Policy and Stakeholder Engagement
- Working with stakeholders to align investment, industrial and trade policies to accelerate the promotion and application of EEV technologies across Malaysia.
- Strengthening coordination to create a conducive environment for sustainable automotive innovation.
Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of MIDA, highlighted the agency’s instrumental role in facilitating this transformative partnership, saying, “MIDA is committed to driving investments that not only enhance Malaysia’s automotive industry but also position the nation as a global leader in sustainable mobility.”
“This collaboration enables us to harness Industry 4.0 and energy-efficient solutions to create a dynamic ecosystem at AHTV that supports innovation and sustainability.” he added.
Through its Global Supply Chain Coordination and Industry4WRD initiatives, MIDA is dedicated to enhancing the capabilities of local suppliers, enabling them to meet international standards. By fostering a competitive and interconnected supply chain, these efforts aim to seamlessly integrate local automotive suppliers into regional and global markets, expanding their reach and impact.
This partnership marks a new chapter for Malaysia’s automotive landscape. It promises high-value investments, sustainable manufacturing, and thousands of skilled jobs, solidifying Malaysia’s role as a regional and global leader in NxGV and EEV production.
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About MIDA
MIDA is the Government’s principal investment promotion and development agency under the Ministry of Investment, Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on X, Instagram, Facebook, LinkedIn, TikTok and YouTube channel.
For media enquiries please contact:
MIDA
Ms. Noor Suziyanti Saad
Director, Transportation Technology Division
T: +603-2267 3575
