Chinese automaker to invest $10bn to make largest auto hub in Malaysia
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Citing Malaysian Prime Minister Anwar Ibrahim, state news agency Bernama reported that the investment should create thousands of job opportunities for locals.
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Visitors look at cars produced by Geely at the Auto China 2020 show in Beijing on Sept. 27, 2020. (AP)
Citing Malaysian Prime Minister Anwar Ibrahim, state news agency Bernama reported that Chinese automaker Geely intends to invest $10 billion to turn Tanjung Malim in Malaysia into the region’s largest auto hub.
According to Anwar, the plan was confirmed to him in a letter on Monday, which would create thousands of job opportunities for locals.
On Tuesday, at an event in the Selangor state, the PM noted, “They said they want to start off by investing $10 billion or 40 billion ringgit...All this is not for getting a commission or gift, but to ensure the growth of our economy and thousands of our young people will secure jobs.”
It is noteworthy that Geely Holding Group Co. already holds a 49.9% stake in Malaysian carmaker Proton Holdings Bhd.
Read more: Chinese EV brands setting the global benchmark of industry
Geely has also doubled its share in British luxury manufacturer Aston Martin Lagonda with $291 million under a new partnership lifting its holding to 17%, up from a 7.6% stake it purchased in September - making it the third largest investor.
The Chinese EV sector has been booming. It has dedicated massive resources to developing technologies relevant to the sector since the early 2000s.
Billions of subsidies and incentives gave Chinese auto-makers a significant headstart against foreign competitors. The industry environment and regulations set by the government have drawn further foreign attraction to the Chinese market, luring in EV giants such as Tesla, which has boosted the domestic sector's competitiveness and attractiveness against foreign firms.
China's EV industry has successfully broken the cost barrier, enabling average consumers to afford an electric vehicle without being burdened by loans.
