DRB-HICOM announced that it has entered into a memorandum of understanding with the Malaysian Investment Development Authority and Zhejiang Geely Holding Group Co., Ltd. for the purpose of exploring potential areas of co-operation and collaboration to promote investments specifically in the development of the Automotive High-Tech Valley in Tanjung Malim, Perak.

Under the mou the parties intend to collaborate and leverage on each other capabilities and strengths to promote the transformation of Malaysia's automotive industry, to propel Malaysia to become a leading country for Energy Efficient Vehicles ("EEV") in ASEAN, and to transform Tanjung Malim, Perak, through the AHTV development, into a global automotive hub, focusing on the production of next generation vehicles and high-tech automotive components.

The transformation of AHTV as a smart manufacturing and export base for the global supply chain system of complete vehicles and parts will include the enhancement of the capabilities of local suppliers to participate in the localisation of key components, which encompasses the transformation and upgrade of the local supply chain through continuous improvements in technical and cost competitiveness of local suppliers.

The development of AHTV is undertaken by AHTV Alliance Sdn Bhd, a joint venture company effectively held by DRB-HICOM (50.1%) and Geely Holding (49.9%). AHTV is to be developed into an international NxGV hub in Tanjung Malim, covering an extensive automotive and mobility solutions value chain, from a full-fledged high technology global research and development center, to a world class original equipment manufacturers OEM manufacturing cluster as well as supporting services and associated eco-system including logistics, training and learning institutions within a smart city.

The aim of the project is to promote the transformation of Malaysia's automotive industry and Industry 4.0, helping Malaysia become a leading country for EEVs in ASEAN and to leverage on each other capability and strength. This initiative aims to transform Tanjung Malim, Perak, into a global automotive hub, focusing on the production of NxGVs and hightech automotive components.

Also to host global automotive supply chain players and establish a complete eco-system in Tanjung Malim which includes enhancing the capability of local suppliers to participate in the localization of key components, assisting the transformation and upgrading of the local supply chain, continuously improving the technical, quality, and cost competitiveness levels of local suppliers.

Both parties will create communication and discussion with related stakeholders on investment, trade and industrial policy with the purpose of transforming AHTV into a smart manufacturing and export base for global supply chain system of complete vehicles and parts. While acceleratating the support of promotion and application of EEVs in Malaysia and build an EEV Ecosystem.
The MOU will be effective for a period of two years with effect from the date on which it is signed.