PM Ismail launches DRB-Hicom automotive hub at Tanjung Malim

DRB-Hicom Berhad (DRB-Hicom) has taken a step towards a high-impact significant project aimed at boosting the national automotive sector. Project is called Automotive Hi-Tech Valley (AHTV) at Tanjung Malim. AHTV is envisioned to be an automotive industry center for the ASEAN area, focusing on new technologies and systems in global automotive sectors, such as electrification, artificial intelligence (A.I), autonomous technologies, and improved connectivity.

The creation of AHTV is aimed at embracing the changing environment of the global automotive industry with an integrated ecosystem that will serve as a catalyst for revitalizing the domestic automotive sector in accordance with the National Automotive Policy (NAP) 2020's direction. This aims to ensure that Malaysia's automotive sector remains on level with, if not ahead of, that of its neighbors. AHTV will be successful if the proper processes, infrastructure, and stakeholder support are in place. AHTV will be well positioned to attract investments from industry players in the region, spurring the growth and capability of the local automotive industry. 

Prime Minister YAB Dato' Sri Ismail Sabri Bin Yaakob presided over the event. Perak Menteri Besar YAB Dato' Seri Saarani Mohamad, Finance Minister YB Senator Tengku Datuk Seri Utama Raja Zafrul Tengku Abdul Aziz, and other government officials were also in attendance. Tan Sri Wan Zulkiflee Wan Ariffin, Chairman of DRB-Hicom, and Dato' Sri Syed Faisal Albar, Group Managing Director of DRB-Hicom, were also present. 

The Proton Tanjung Malim factory is surrounded by a 4,000-acre area, the majority of which is already occupied by Universiti Pendidikan Sultan Idris, existing vendors, commercial properties, and residential properties. The additional area will be used to create AHTV, which will include a research university.

DRB-Hicom has also inked an MOU with Geely Holding Group for AHTV. The MOU with Proton's shareholder, signed on-line on 11-April 2022, outlines how the two companies would work together to develop AHTV and identify vendors and investors for the hub. The involvement of Geely Holding Group, DRB-strategic Hicom's partner for national manufacturer Proton, is a boost for AHTV. Geely Holding Group is known for its technological prowess in the automotive ecosystem.

This could provide encouragement for vehicle and component manufacturers, particularly those from China, to invest in local manufacturing facilities in order to expand their company and export potential. For enterprises who use it as a base, AHTV has the potential to serve as a gateway to the ASEAN and OIC markets. Within the area, there are currently 17 vendors.

AHTV will also see the setting up of a research university. This will create an opportunity to nurture a new generation of engineers for the automotive industry in areas of Engineering, IT, Design, Artificial Intelligence, Mobility Solutions & Software Development. This will strengthen local research and development (R&D) capabilities and ensure competitiveness of local original equipment manufacturers (OEMs). The establishment of an automotive based of the research university augurs well for Malaysia, as the industry surges ahead with Next Generation Vehicles (NxGV) and Mobility-as-a-Service (MaaS). 

The AHTV site in Tanjung Malim, which is adjacent to the Proton manufacturing factory, is estimated to provide 370,000 jobs during its development stage. Phase 1 of the hub, when finished, will provide over 160,000 work possibilities in the area, contributing to the economy of Perak Darul Ridzuan and the country.