Toyota to Invest $326 Million in Malaysian Operations

Toyota marks its 39^th anniversary in Malaysia by announcing it is spending 1billion Malaysian ringgit ($326 million) to expand operations, including further development of its manufacturing facility.

UMW Toyota was established in 1982 as a joint venture between UMW Corp. and Toyota.

UMW Toyota Chairman Asmat Kamaludin says the auto maker also will increase its dealer network and develop and support its local suppliers so they can become more competitive in the region.

“Our strong resource base and productive capacity have become one of the main factors driving the national economy,” he says in a statement.

Human-capital development also is crucial for long-term growth and success, and therefore UMW Toyota has introduced an inter-company transfer program in which employees undergo one to two years of work and training at other Toyota companies in Japan, Thailand and Singapore.

Participants will improve their skills and experience through exposure at the global level, Asmat says. “This program is in line with the Look East Policy that was introduced 30 years ago by then-Prime Minister Mahathir Mohamad, which highlights the assimilation of Japanese working culture and knowledge into the local workforce.”

Toyota has contributed significantly to the country’s economy through network expansion and enhancement, localization of products that requires upgraded manufacturing facilities and vendor development, he says.

“We look forward to assisting the Malaysian government to boost the number of eco-friendly vehicles. We will continue our efforts to create awareness on Toyota hybrid technology to allow Malaysians to enjoy…greener living.”

Deputy International Trade and Industry Minister Jacob Dungau Sagan reportedly tells attendees at an anniversary dinner that UMW Toyota is a prime example of successful Malaysian-Japanese cooperation.

“The company has grown with the nation, contributing to the economy (and) to the ongoing development of human capital, technology, knowledge and skills transfer,” he says, adding UMW Toyota also is responsible for moving the local automotive industry up the value chain.

“The introduction of new models has brought in new technology that has positively impacted local manufacturers of automotive parts and components.”

UMW Toyota recently opened its flagship body and paint center as part of its MYR200 million ($65.3 million) integrated quality hub. The facility, with a staff of 65, also serves as a training center for other body and paint centers in Malaysia.

It is equipped with 42 work bays, four paint booths and state-of-the-art repair equipment, with a repair capacity of more than 6,150 units annually.