AHTV to revitalise Malaysia’s automotive industry
25 Jul 2023
It is expected to attract RM32b investments over the next 10 years and help Malaysia become a regional leader in the production of NxGVs
The Automotive High-Tech Valley (AHTV) project is a major initiative which is expected to revitalise the Malaysian automotive industry.
The project is expected to attract RM32 billion in investments over the next 10 years, create thousands of job opportunities and help Malaysia become a regional leader in the production of next-generation vehicles (NxGVs).
Located in Tanjung Malim, Perak, the AHTV will be a hub for tropical-based research and development (R&D) of high-tech automotive components.
The project will also include a research university which will help to enhance the capabilities of Malaysian automotive workers and help Malaysia to remain competitive in the global automotive market.
DRB-Hicom Group MD and Proton Holdings Bhd chairman Syed Faisal Albar said it will also help create a more sustainable and environmentally friendly automotive industry in Malaysia.
“Concurrently, our combined efforts as well as the strong interest shown by vendors from China will help attract support for the project from the Chinese government, which can lead to even more investments propelled into AHTV and Malaysia,” he said at the Global Investors & Vendors Convention 2023, organised by Proton last week.
He added that Zhejiang Geely Holding Group Co Ltd’s collaboration with Proton and the former’s support for the project has already resulted in several investors and component suppliers operating in Tanjung Malim.
“Their existing high-technology ecosystem is sure to play a major role in propelling the project forwards,” he said.
According to the agreement, Tanjung Malim, where Proton has been operating its production plant for the last 20 years, will be transformed into a smart city and hub for NxGV, in the form of AHTV.
“It will be a hub for renowned tropical-based R&D of high-tech automotive components, including a research university aiming at enhancing the capabilities of Malaysian automotive workers and helping the nation in becoming a regional leader in education for automotive engineering, IT and artificial intelligence (AI),” Syed Faisal said.
Meanwhile, Proton CEO Dr Li Chunrong stated that AHTV will serve as a regional NxGV hub, but Proton will maintain a significant presence there, as the project’s owners, DRB-Hicom and Geely, are also Proton’s shareholders.
“Therefore, the company will remain heavily involved in efforts to attract overseas investors to the project, performing R&D activities at AHTV as we further develop our offerings, and creating jobs as we work towards achieving our long-term goals,” he said.
He added that the company also views this as part of Proton’s commitment to being a custodian of the automotive industry in Malaysia as it seeks to help nurture, develop and grow the national ecosystem.
A Chinese investor, Wang Wei, believed that the AHTV project has the potential to be a major success.
“The project is backed by the Malaysian government, and it is expected to attract billions of dollars in investment.
“I believe that the AHTV has several key advantages that will make it successful because Malaysia has a strong automotive manufacturing industry with skills and infrastructure in place to support the AHTV,” he said to The Malaysian Reserve (TMR).
He added that Malaysia is a strategic location for the automotive industry.
“The country is located in the heart of South-East Asia (SE Asia), which is a major growth market for the automotive industry. The AHTV will be well-positioned to serve this growing market,” he said.
He also acknowledged the government having provided significant financial support for the project as well as regulatory and policy support, which will help to attract investors and make the AHTV a success.
“I believe that AHTV has the potential to be a major player in the global automotive industry,” he said.
In addition to the advantages mentioned above, Wei believed that the AHTV has several other strengths.
For example, he said Malaysia has a strong pool of talent in the automotive industry.
“The country is home to several universities that offer automotive engineering programmes and there is a large number of experienced automotive workers in Malaysia,” he added.
Another strength of the AHTV is the country’s commitment to innovation.
“The Malaysian government’s investment in R&D, and its supportive environment for innovation in the automotive industry will help to ensure that AHTV remains at the forefront of automotive technology,” he added.
Source: The Malaysian Reserve
