MITI To Engage With Proton, Geely On Supply Chain Issues

KUALA LUMPUR, 20 Feb (Bernama) -- The Ministry of Investment, Trade and Industry (MITI) will hold an engagement session with Proton Holdings Bhd and Zhejiang Geely Holding Group Co Ltd (Geely) to discuss supply chain-related issues.

Its Minister, Tengku Datuk Seri Zafrul Abdul Aziz said the ministry will review the matter, particularly concerning the electric vehicle assembly hub in Tanjung Malim, Perak.

"The planning appears to be long-term, with significant costs to be borne by Proton and Geely.

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"At the same time, we will ensure that jobs in engineering, installation, maintenance, and management during the first phase of this factory involve local vendors and Malaysians, especially those with a keen interest in the automotive industry," he said during the winding-up session of the Royal Address debate for the ministry in the Dewan Rakyat today.

Tengku Zafrul noted that the supply chain issue had previously been discussed with Proton, particularly regarding the challenges faced by local vendors competing with Chinese companies.

"(We have discussed) bringing factories from China directly to Malaysia. However, this would put pressure on our local manufacturers and vendors, as they may struggle to compete with Chinese firms in terms of economic scale and expertise.

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"Therefore, the special incentives provided must ensure that the supply chain originates from within our country. Otherwise, these incentives cannot be granted," he said.

On Tesla's investment in Malaysia, Tengku Zafrul said the company's decision to establish a factory in the country is still under discussion.

"Several Southeast Asia countries are also courting Tesla. Currently, Tesla operates only one factory in Asia, located in China. Tesla has yet to decide on investing in Malaysia, but I believe the company will proceed only if the investment is commercially viable and promises positive returns," he added.

-- BERNAMA