Berjaya Corp Receives Local Assembly Manufacturing Licence

Berjaya Corp Bhd has received a manufacturing licence for the assembly of hybrid and electric vehicles, luxury vehicles and commercial vehicles in Malaysia. Granted by the International Trade and Industry Ministry (MITI), the licence allows Berjaya Corp to proceed with local assembly (CKD) plans in the 100-acre plant located at Bukit Tagar, Selangor.

Tan Sri Vincent Tan, chairman and CEO of Berjaya Corp, which owns and operates the Mazda and Skoda franchises among others in Malaysia, believes that this licence can promote green technology and propel the company's automotive business to another level.

“Besides strategically complementing and widening our existing range of motor brands, this will also be a good opportunity for Berjaya Corp to promote green technology through the development of hybrid and electric vehicles which are more environmental-friendly”, Tan said. “In line with this, we hope to expand our market share and develop a more global presence”.

The 2010 National Automotive Policy (NAP) explicitly states that manufacturing licences would only be granted for the production of vehicles with engine capacities of at least 1800 cc and with on-road pricing of at least RM 150K. That policy has prevented Berjaya Corp from gaining a manufacturing licence, despite signing a memorandum of understanding (MOU) with China-based BYD Auto Company Ltd for the local assembly of small-engine models such as the BYD F0 1.0-litre.

But now that Berjaya Corp has the manufacturing licence in hand, presumably for the production of hybrid and electric vehicles, it remains to be seen if the company is restricted to assembling conventional cars with engine capacities of 1.8-litre and above. In any case, Malaysian consumers stand to benefit from lower CKD prices.