DRB-Hicom and Geely to develop the Automotive High-Tech Valley in Malaysia

KUALA LUMPUR: At the recently held Malaysia - China Business Forum in Beijing, DRB-Hicom and Geely have signed a Heads of Agreement, under which the two entities will jointly invest, manage, and develop the Automotive High-Tech Valley in Tanjung Malim. The region will be transformed into a smart city and hub for Next-Generation Vehicles (NxGV) that is expected to attract investments worth an estimated RM 32 billion over the next 10 years.

The deal signed between DRB-Hicom group managing director Datuk Seri Syed Faisal Albar and Geely’s CEO Daniel Li Donghui was witnessed by YAB Dato Seri Anwar Ibrahim, Prime Minister of Malaysia and several business leaders from both nations. 

The smart city that is being proposed will cover around 1,000 acres initially with plans to expand it in the future to accommodate growing needs. It will comprise a high-tech global R&D centre, a manufacturing hub, support services for the automotive ecosystem, and a research-oriented university focused on nurturing fresh talent in related fields.

Among the main tenants of the city will be Proton which will move its entire production operation to Tanjung Malim by the end of 2026. 

“We acknowledge the importance of Malaysia becoming the regional hub for NxGV products hence PROTON as the national brand will play an active role in contributing significantly towards achieving the nation’s goals. To be competitive, PROTON and the automotive ecosystem must invest in research and development (R&D), as well as advanced manufacturing processes. With progressive development of AHTV and constant engagement among stakeholders especially the Government of Malaysia, DRB-HICOM, Geely Group, PROTON and automotive ecosystem, these goals are within reach,” said Dato’ Sri Syed Faisal Albar, Chairman of PROTON.

The automaker has also established its NEV strategy for the near future with continuous exploration of opportunities to accelerate NEV programs in line with the Government’s aspirations. It is focused specifically on offering affordable and practical NEVs while pursuing local manufacturing and ecosystem development of NEV in the country. Included in the major steps are- 

• Launch of the Proton X90 powered by a mild-hybrid version of its 1.5 TGDI engine
• Introduction of the smart #1 by PRO-NET in Q4 of 2023
• Expanding the range with the inclusion of new vehicle segments 
• Geely premium electric sub-brand Zeekr will make its way to Malaysia

Also read: Proton X90 revealed as the brand’s first mild-hybrid EV

The company has invested over RM 3.3 billion since 2018 with support from DRB-HICOM and Geely for product development, manufacturing expansion, and human capital development in new and emerging technologies. The development of AHTV will bring more investments to focus on new energy and intelligent technologies. 

“PROTON is now in the second half of its ten-year business plan. Besides the hiccups caused by two years of pandemic control measures, we are pleased with the progress made so far. Over the next five years, we aim to work even more closely with Geely and expand our offerings as the market for NEVs grows. This in turn will help develop the national automotive ecosystem and push Malaysia towards its target of being an NxGV hub.

“We will also expand our focus to include other aspects that support the industry. For example, charging infrastructure development is a priority for NEVs so we will optimise synergy with Geely group of companies to enhance the NEV infrastructure for PROTON and the ecosystem in Malaysia,” said Dr. Li Chunrong, Chief Executive Officer of PROTON.

Also read: Proton Saga launched in South Africa at RM 48,814