Proton signs up a 5-year contract with Multi-Code worth RM240 Million

Proton signs up a 5-year contract with Multi-Code worth RM240 Million

Kuala Lumpur: The second largest Malaysian carmaker Perusahaan Otomobil Nasional Sdn Bhd (Proton) has signed an RM240 Million contract with the car electronic parts manufacturing company Multi-Code Electronics Industries (M) Bhd. As per the contract, Multi-Code will be the primary supplier of all the electronic parts for the national carmaker for the next five years. The Edge Markets reported that this contract has immediately boosted the share price of locally listed Multi-Code by 23.81%.

Proton has been striving quite hard to secure the number one spot in Malaysia, which is currently shadowed by Perodua. The national carmaker follows the philosophy to utilize more local businesses to enhance the economy. So far, Proton has efficiently managed to avoid monetary outflow beyond Malaysia, recording as much as RM200 billion from the sale of four million vehicles in its 30 years of its journey thus contributing RM20 billion in taxes to the government through the sales and service tax.

Talking about Multi-Code, it is a local company which is headquartered in Johor. The electronics parts manufacturing company started its production in the year 1990. The company was started with an initial investment of around RM1.55 million. It Is majorly associated with manufacturing and supply of anti-theft technologies like central locking, alarm systems, and power window regulators. MCE is currently trading into designing, manufacturing and supply of this mechatronics in Malaysia as well as other regional markets of ASEAN segment.

As a part of the contract, MCE will be supplying the national carmaker with parking sensors, power regulators, functional switches, ignition key sets and various other anti-theft alarming devices. According to The Edge Markets, Multi-Code will start delivering these devices to Proton by the start of second and third quarters in this financial year that will end on July 31, 2016.

MCE will be highly benefitted by this deal with Proton, as it was earlier reported that the company incurred a net loss of RM1.07 Million in the Financial Year 2015 with a net revenue of just RM90.03 million. However, in the latest quarter that ended on Oct 31, 2015 (1QFY16), the company accounted a net profit of RM143,000 compared to the net loss of RM1.84 million last year, this rocketed the revenue of company to RM22.41 million moving up by 10.23%.

The main reason of losses incurred by the company was due to low demands from the OEM customers who themselves faced huge fall in sale units due to weakening ringgit and implementation of GST earlier this year.

Image Courtesy: multicode.com &imgur.com

Sanchit Agarwal

Sanchit Agarwal

Despite being a biotech professional, Sanchit Agarwal's daydreams of driving a Ferrari and chasing cars in a Grand Prix made him jump into automotive journalism. His childhood craving for the cars started with Hot wheels toys which led him to create pseudo cars on his own. When people loved playing outdoor sports, Sanchit was stuck to his racing video games hidden in a closet. The torque of his creative writing coupled with his passion for moving machines pushed him into Carbay's garage. Sanchit also wonders's, why is he writing this as a third person.

Read Full Bio

Sell your car at the best price

Verified and genuine buyers Verified and genuine buyers
Free listing Free listing
List your car

Proton Car Models

  • Proton Saga
    Proton Saga
  • Proton X50
    Proton X50
  • Proton S70
    Proton S70
  • Proton Iriz
    Proton Iriz
  • Proton Persona
    Proton Persona
  • Proton X90
    Proton X90
  • Proton X70
    Proton X70
Proton Cars Price

You might also be interested in

  • News
  • Featured Stories
  • Upcoming
  • Proton e.MAS 7 ev
    Proton e.MAS 7
    RM 120,000 Expected Price Kuala Lumpur
    Expected Launch Dec, 2024 Alert Me When Launched

Latest Proton Car Videos on Zigwheels

Zigwheels
  • 2024 Proton S70 Review - Best bang for buck compact sedan?
    2024 Proton S70 Review - Best bang for buck compact sedan?
    26 Jun, 2024 .
  • 2024 Proton X90 Premium Part-3
    2024 Proton X90 Premium Part-3
    19 Mar, 2024 .
  • 2024 Proton X90 Premium Part-2
    2024 Proton X90 Premium Part-2
    19 Mar, 2024 .
  • 2024 Proton X90 Premium Part-1
    2024 Proton X90 Premium Part-1
    19 Mar, 2024 .
  • 2019 Proton Persona now looks much better designed | EvoMalaysia.com
    2019 Proton Persona now looks much better designed | EvoMalaysia.com
    13 Nov, 2019 .
  • FIRST DRIVE: 2019 Proton Persona facelift quick review
    FIRST DRIVE: 2019 Proton Persona facelift quick review
    13 Nov, 2019 .
  • 2018 Proton Perdana 2.0 Start-Up and Full Vehicle Tour
    2018 Proton Perdana 2.0 Start-Up and Full Vehicle Tour
    13 Nov, 2019 .
  • New Proton Perdana Review! See why it's my pick for a perfect all-rounder!
    New Proton Perdana Review! See why it's my pick for a perfect all-rounder!
    13 Nov, 2019 .
  • Hi Proton Iriz! You handsome little hatch! - AutoBuzz.my
    Hi Proton Iriz! You handsome little hatch! - AutoBuzz.my
    13 Nov, 2019 .
  • 2019 Proton Iriz facelift First Look - AutoBuzz.my
    2019 Proton Iriz facelift First Look - AutoBuzz.my
    13 Nov, 2019 .
Latest Proton Car Videos

Compare

You can add 3 variants maximum*