KUALA LUMPUR: National car marque Proton Holdings Bhd is expected to roll out 400,000 vehicles annually at a new plant in Tanjung Malim, Perak from 2022, leveraging on its partnership with Zhejiang Geely Holding Group.
Second International Trade and Industry Minister Datuk Seri Ong Ka Chuan said the government has big plans to develop Tanjung Malim as the automotive city.
Tanjung Malim is one the five main corridors highlighted by Prime Minister Datuk Seri Najib Razak in the 2018 Budget.
Together with Tanjung Malim, the allocation of RM1 billion announced in the budget will be also for the development of south Perak region comprising Educity and Youth City in Tanjung Malim, Bukit Kayu Hitam Duty-Free Zone, construction of port and industrial park in Tok Bali, Kelantan and access road to Baleh Dam, Sarawak.
"Proton is currently working with Geely, and Volvo will also be coming to Tanjung Malim. We hope to create a five-year plan with the potential to produce 400,000 vehicles annually,” he told reporters on the sidelines of Malaysia Productivity Corp’s (MPC) Business Excellence CEO Forum 2017 in Kuala Lumpur yesterday.
Ong said about 200,000 vehicles with Proton badge, to be produced in collaboration with Geely, will be catered for China and Asean markets.
"I have been appealing to Proton to move its Shah Alam plant to Tanjung Malim, which in turn would create 15,000 jobs. Hence, it will become relevant to call it as the Youth City,” he said, referring that most of young generation work in automotive factories.
Ong said the export volume from the new automotive plant would spur more supply chains from the existing vendors.
“Our quality must be very good to enter the export market. We have been sending Proton's engineers and technicians to China for training purposes.
"Geely has the research and development (R&D) centre with 10,000 engineers that cost the company about US$1.2 billion (RM5.09 billion) in annual spending,” he added.
Proton is allowed to use Geely’s R&D centre, which would drive the national carmaker to create some new models, backed by Geely’s assistance in new technology to assemble cars.
“The automotive technology is undergoing revolutionary changes. The Shah Alam plant will be closed in phases within five years and vehicles assembly is moved to a new plant in Tanjung Malim,” he said, noting that the plant will be equipped with Geely’s new technology.
Proton engineers will be handling the production plant after a year returning to Malaysia.
“At the moment, we need to produce our first badge of cars in China and let them get use to the new technology like electric and hybrid vehicles,” he said.
Ong pointed out that the global trend is going towards electric and hybrid, as it started phasing out internal combustion engine.
For example, Volvo has announced it will be partially or completely stop producing internal combustion engine.
European counties like France and England are also expected to phase out internal combustion vehicles by 2030 and 2040, respectively.
"The world is moving towards that direction. Malaysia needs to go towards that direction in order to be competitive in the world market.
"As such, Tanjug Malim will have the automotive plant that appeals to both standards. It will be a game-changer, creating a lot of job opportunities for the young people and bring supply chain such as electronics, information and communication technology and auto parts factories,” he said.