RM500M TAN CHONG HUB IN BAGAN DATUK A STRATEGIC LINK

KUALA LUMPUR: The RM500 million Tan Chong Automotive and Commercial Vehicle Hub in Bagan Datuk, Perak, will create a symbiotic “motor valley” between the industrial regions of Gurun, Penang, Tanjung Malim, Shah Alam and Melaka.

Malaysia Automotive Institute chief executive officer Datuk Madani Sahari said this will boost Malaysia’s automotive sector as well as export growth.

“For example, it is expected to strengthen the commercial vehicle sector in Malaysia and enhance scalability in the development of buses and lorries, in line with safety and commercial needs of fleet operators and consumers,” he told NST Business.

The hub, to be developed by Tan Chong Motor Holdings Bhd, is set to create a strategic link among automotive hubs along the west coast in the peninsula.

MIDF Research automotive analyst Hafriz Hezry is also positive about the hub as it will create economic spillovers in terms of incremental volume in exports, vendor development and job creation.

“The idea is to also use it as a hub for exports, with the initial focus on commercial vehicles.”

The automotive hub is part of Tan Chong’s strategic business plan.

The group said the initial outlay of RM100 million will be channelled towards land acquisition and the construction of a bus and lorry plant in Phase 1.

“Once completed, the plant will cater for production expansion needs of local and export markets,” it said.

Buses produced by Tan Chong are currently exported to Singapore, Hong Kong and Myanmar.

The company also has plans to export its vehicles to Thailand, Sri Lanka, Vietnam and Indonesia.

The idea is to also use it as a hub for exports, with the initial focus on commercial vehicles. HAFRIZ HEZRY MIDF Research automotive analyst