Major projects / Malaysian Car Industry

Major projects

Proton City, a development project that includes a test drive circuit, an automotive technology centre, a housing estate, convention centre, hotel and recreational park is being revived after being shelved during the Asian financial crisis. Anchoring the project is a 1600 ha plant that will double Proton’s current production capacity of 230,000 units a year. Australia’s share of Malaysian imports is miniscule (less than 1.5 per cent) leaving significant room for expansion. 

Opportunities exist for Australian companies as their technology is well regarded. Several Australian automotive parts manufacturers, eg. Automotive Components Limited(pistons), Bendix Mintex(disc brake pads, etc.), PBR(brake and clutch) have successfully established themselves and are enjoying strong growth in the local auto parts industry. A CKD Toyota Camry is the major export into Malaysia. To support the development of the automotive industry in Malaysia, a number of programs have been introduced to upgrade the capabilities of the local component manufacturers. 

Under the Proton Vendor Development Program, more than 120 companies manufacture over 900 original equipment manufacturing(OEM) parts and components, including metal-stamped and pressed parts, plastic injection moulded parts, wire harnesses, wipers, lamps, radio cassettes and air-conditioners for Proton. Currently, most of Perodua’s local components are sourced from existing Proton suppliers. A multi-sourcing facility was introduced to enable assemblers and franchise holders to import certain components and parts directly from cheaper sources, particularly manufacturers in the region, rather than through completely-knocked-down (CKD) kits from the principal company. 

Multi-sourcing also supports regional product implementation, which should provide local component manufacturers with additional avenues to penetrate markets within the region. Financial support is available to small- and medium-scale manufacturers in this sector.