DRB-Hicom, Geely, Perak govt in talks on Automotive HiTech Valley

12 Oct 2022

DRB-Hicom Bhd (DRB-Hicom) and Zhejiang Geely Holding Group Co Ltd (Geely) are in discussion to extend the duration of the memorandum of understanding (MoU) on developing and promoting the Automotive HiTech Valley in Tanjong Malim, Perak.

DRB-Hicom said this in a filing with Bursa Malaysia today, updating on the status of the MoU which was inked on April 11, 2022, and expires after six months.

It said the strategic collaboration will add value to the company as it will become a strategic platform for both parties to explore avenues of collaboration towards the establishment of this automotive city, the development of which is intended to bring extended multiplier effects.

Among other things, the setting up of an automotive industry cluster in Tanjong Malim would attract investors and vendors from China and other parts of the world.

“The MoU is to pave the way for further discussions and negotiations between the parties prior to the signing of any definitive agreement to effectuate the proposed strategic collaboration,” DRB-Hicom said.

In a separate filing, DRB-Hicom stated that it is also in the midst of discussions with the Perak state government to finalise the definitive collaboration agreement.

On April 12, 2022, the company inked an MoU with the Perak state government for the development of the integrated automotive city.

“Any material and significant development will be updated accordingly.

“Save as disclosed above, all provisions contained in the MoU shall remain in full force and effect,” it said.

Source: Bernama