News Column

RM260m boost for local car vendors, dealers

February 20, 2014

Cheryl Yvonne Achu

KUALA LUMPUR: SECOND national carmaker Perusahaan Otomobil Kedua Sdn Bhd (Perodua) has teamed up with Malaysian Automotive Institute (MAI) to offer financing facility to local car vendors and dealers.

The partnership is in line with the government's efforts to make the automotive industry globally competitive.

Perodua will provide an initial fund worth RM260 million to car vendors and dealers, while MAI will evaluate their business proposals to determine whether they are worthy of receiving the financing, which is for over five years.

"This is another example of a smart partnership between the government and corporate sectors to further strengthen the industry," said Perodua president and chief executive officer, Datuk Aminar Rashid Salleh, after the signing ceremony between MAI, Perodua Manufacturing Sdn Bhd and Perodua Sales Sdn Bhd, here, yesterday.

The signing was witnessed by International Trade and Industry Minister Datuk Seri Mustapa Mohamed. Also present was MAI chief executive officer Madani Sahari.

Aminar said the fund will help local car vendors improve operational efficiency by way of technology and cost management, and by boosting their productivity to global standards.

He said Perodua will support the vendors' production preparation stage of the vehicle parts manufacturing.

The carmaker and its partner, Daihatsu Motor Co of Japan, will offer technical expertise in terms of production capabilities, quality standards and cost management.

"The company will also allocate some funds to MAI as part of the vendor development fund to support vendors' technological development and enhancement activities," he said.

Meanwhile, Mustapa said Perodua's new model in the A segment, slated for a launch in the second half of this year, will be an energy-efficient vehicle and eligible for incentives under the National Automotive Policy.

"Incentives will be given after Perodua finalises its incentives application to the Malaysian Investment Development Authority and the ministry," he said.

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Source: Business Times (Malaysia)

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