19-7-2023 (KUALA LUMPUR) Chinese automobile manufacturer Geely has unveiled ambitious plans to invest US$10 billion (RM45 billion) to transform Tanjung Malim, Perak, into the largest auto city in the region. The company conveyed its aspiration to Prime Minister Datuk Seri Anwar Ibrahim through a 10-page letter last night, outlining its vision to create numerous job opportunities for Malaysians.
Speaking at the Selangor state-level Sentuhan Agro Madani programme, Anwar Ibrahim shared the exciting news, emphasizing that the substantial investment by Geely would have a significant positive impact on the nation’s economy and lead to the employment of thousands of young people.
“This remarkable investment of US$10 billion in Tanjung Malim is not for commissions or gifts; it is a testament to our commitment to boost economic growth and provide our youth with promising job prospects,” Anwar stated.
Upon the announcement, DRB-Hicom Bhd, which has a joint venture with Geely in producing cars for Proton, witnessed a surge in its shares, closing 3.6% higher at RM1.44, reaching its highest point in over two months.
The collaboration between DRB-Hicom and Geely began when they signed a heads of agreement in Beijing on April 1, with the aim of developing an automotive industry hub in Tanjung Malim. Geely had previously acquired a 49.9% stake in Proton from its parent company, DRB-Hicom, in September 2017.
In the first quarter of 2023, DRB-Hicom recorded a revenue of RM4.1 billion and a net profit of RM107.9 million, resulting in earnings per share of 5.58 sen. The strong performance was largely driven by improved automotive segmental margins, contributions from automotive associates, and robust service segmental performance, which offset a decline in contribution from DRB-Hicom Defence Technologies Sdn Bhd.
Besides the groundbreaking investment by Geely, Anwar Ibrahim also revealed the significant interest shown by the Saudi Arabian government and the kingdom’s oil and gas giant, Aramco, in expanding their investments and operations in Malaysia. According to the Aramco CEO, Amin Nasser, the company finds Malaysia to be a favorable hub for its oil and gas expansion in South-East Asia.
The Malaysian Finance Minister highlighted the country’s commendable economic growth, achieving 5.6% in the first quarter of 2023, outperforming China, Singapore, and Indonesia. Anwar attributed part of the success to the country’s political stability, which played a role in attracting RM71 billion worth of approved investments in the first three months of the year.
The remarkable investments from Geely, Aramco, and Tesla CEO Elon Musk are among the factors driving Malaysia’s economic growth and development, reaffirming the country’s position as an attractive destination for foreign investments.
