Malaysia Turns to India’s Tata to Upgrade Automaking

Malaysia is looking to India’s Tata Group to introduce new technology in Malaysian vehicle manufacturing.

Second International Trade and Industry Minister Ong Ka Chuan says this is the next step for Malaysia after linking up with China to keep the country’s automotive industry on a strong footing. That move saw China’s Zhejiang Geely buy 49% of national car company Proton.

“For now, Proton is on the right track and now we have to go further,” Ong tells The Sun Daily newspaper.

“We are looking at India’s largest multinational automotive manufacturer Tata Group, which acquired English premier car manufacturer Jaguar and Land Rover,” Ong says.

“We want them to set up a plant in Malaysia. Our idea is to create an automotive hub.”

Ong, who says Prime Minister Abdul Razak supports the initiative, planned to kick-start discussions after the Chinese New Year celebrations that started Feb. 16.

“I might also visit the manufacturers – this is my Chinese New Year agenda,” he says. “We have to offer the foreign investors attractive incentives to convince them to come to Malaysia. We will offer the industrial park next to Proton City for them to set up the plant.”

Earlier, Minister of International Trade and Industry Mustapa Mohamad briefed media, fund managers, research houses, government officials and academics on the growth of Malaysia’s automotive industry.

Mustapa says the industry pledged to make 3.99 billion ringgit ($1.02 billion) in investments from 2018 to 2022, in addition to MYR7.6 billion ($1.95 billion) worth of investments realized as of 2017.

He says 27,125 auto-industry jobs were created in 2017, a 4.9% increase from 2016 with 31% of them for skilled and highly skilled employment – technicians, executives, engineers and designers. Another 29,641 jobs are expected to be created this year.

“The growth of the automotive industry has created new career opportunities for Malaysians,” Mustapa says.

Malaysian Automotive Institute CEO Madani Sahari told the briefing his group and the Ministry of International Trade & Industry are developing programs to elevate the capabilities of vendors and automotive talent in line with global trends and complex technology.