logo
MIDA And Chery Forge Strategic Automotive Alliance, Marking A New Era In Malaysia's Automotive Sector

MIDA And Chery Forge Strategic Automotive Alliance, Marking A New Era In Malaysia's Automotive Sector

Barnama20-05-2025
KUALA LUMPUR, May 20 (Bernama) -- The Malaysian Investment Development Authority (MIDA) and Chery Corporate Malaysia Sdn. Bhd. launched the Chery Premier Supply Chain Synergy Programme, marking a transformative milestone for Malaysia's automotive industry. The strategic initiative, held last Friday, hosted at MIDA's headquarters and supported by the Ministry of Investment, Trade and Industry (MITI) and the Malaysia Automotive Robotics & IoT Institute (MARii), brought together 12 leading Chery Technology suppliers from China and 23 Malaysian suppliers, creating a powerful platform for collaboration and growth.
Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Office of MIDA, highlighted the significance of the Chery Premier Supply Chain Synergy Programme in realising Malaysia's National Automotive Policy (NAP) 2020, 'This inaugural programme directly supports our commitment to fostering collaboration between Malaysian vendors and Chery China. We aim to unlock mutually beneficial opportunities that drive growth and innovation, aligning perfectly with NAP 2020's objectives of promoting local vendor development, supporting next-generation vehicles (NxGV), and incorporating Industry 4.0 practices. By fostering these vital links, we envision a future rich with technology transfer, streamlined supply chains, and enhanced industrial capabilities, ultimately benefiting both Malaysia and Chery.'
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Zafrul: 19% US tariff fair, ties intact
Zafrul: 19% US tariff fair, ties intact

The Star

time37 minutes ago

  • The Star

Zafrul: 19% US tariff fair, ties intact

New pact protects national interests, preserves sovereignty KUALA LUMPUR: Malaysia considers the newly imposed 19% tariff on its exports to the United States a fair and balanced outcome that safeguards national interests, says Tengku Datuk Seri Zafrul Abdul Aziz. While Malaysia had hoped for a lower rate, the Investment, Trade and Industry Minister said the result of the negotiations does not compromise the nation's core poli­cies or sovereignty. 'Among Asean countries, Malaysian goods remain competitive in the US market,' he told the Dewan Rakyat yesterday. He emphasised that the United States is Malaysia's top export destination and a source of foreign direct investments, with nearly RM200bil in export value, making trade relations too important to be taken lightly. Tengku Zafrul cited the electrical and electronics sector, where about 100,000 jobs, particularly in Penang and Kedah, could be impacted by any adverse shift in US trade policy. He said both countries have agreed in principle to an Agree­ment on Reciprocal Trade, covering six key areas: tariffs and quotas, non-tariff barriers, digital trade and technology, rules of origin, economic and national security, and commercial considerations. Malaysia has agreed to reduce or eliminate import duties on 98.4% of all tariff lines for US imports, he said. While excise duties remain untouched, Tengku Zafrul said sales tax exemptions will apply to certain US agricultural products like dairy and seafood. On digital trade, Malaysia agreed not to impose a discriminatory digital service tax on US companies, to drop the 6% Universal Service Fund contribution requirement for American cloud and social media firms, and to lift the directive requiring domain name system traffic routing through local servers. However, Malaysia rejected several US demands that could undermine sovereignty. 'Cloud service providers and social media platforms remain subject to Malaysian laws. We also retain the right to request source code transfers for use in critical infrastructure, government procurement and the financial sector,' said Tengku Zafrul. Malaysia, he added, also agreed to strengthen export controls under Section 12 of the Strategic Trade Act, addressing US concerns over the export and transit of AI chips to third countries. It also committed not to restrict exports of rare earth elements and critical minerals to the United States, though no exclusivity was granted over Malaysia's supply. Tengku Zafrul also dismissed claims that Malaysia Airlines' US$19bil (RM80.51bil) acquisition of Boeing aircraft was made under pressure from the United States, clarifying that it is part of a long-term fleet renewal plan by Malaysia Aviation Group. He said the purchase includes aircraft, engines, training, maintenance and long-term support, which would benefit Malaysia's aerospace and tourism sectors. Tengku Zafrul said that many Malaysian companies supply cri­tical components to both Boeing and Airbus, contributing RM25.1bil annually and supporting 30,000 jobs nationwide. 'At the same time, our tourism sector has shown strong post-­pandemic recovery. Boeing forecasts global passenger traffic to grow by 4.7% over the next 20 years. This investment enables Malaysia to tap into the growth potential of both tourism and aerospace industries,' he said. Tengku Zafrul reaffirmed that the government remains firm on key national interests, including SME participation in supply chains, bumiputra vendor empowerment, halal import standards, and protections for critical sectors. He also rejected allegations that Malaysia will automatically recog­nise halal certificates from US bodies. While both countries have agreed to facilitate the import of meat and poultry products from the United States, such imports must still comply with halal standards set by the Malaysian Islamic Development Department. Other key areas of agreement include streamlined registration for US dairy, meat and poultry exporters, regionalisation for disease control in poultry exports, and alignment of standards for industrial products like medical devices, pharmaceuticals, and automotive goods with Malaysian regulations. Tengku Zafrul said both nations have also committed to strengthening enforcement in areas such as intellectual property rights, labour, environmental protection and sustainable fisheries management, based on Malaysia's obligations under relevant international organisations. 'I want to stress that Malaysia has not relaxed any controls or conditions that would compromise the rights of the people or the sustainability of local industries,' he said. 'There is no blanket exemption granted to import licensing or approved permits for products imported from the United States. 'There is also no full liberalisation of foreign equity ownership conditions in strategic sectors, and bumiputra equity requirements remain in place for all relevant sectors.'

A pillar of the Malaysian economy
A pillar of the Malaysian economy

The Star

time37 minutes ago

  • The Star

A pillar of the Malaysian economy

Good progress: (From left) Rizal, Bernard, Ramanan, Ewon, Khairul Dzaimee and Mohd Uzir holding fact sheets of the 'Prestasi PMKS 2024' report at the announcement ceremony. — AZHAR MAHFOF/The Star Country rakes in RM652bil last year via MSMEs KUALA LUMPUR: Some RM652.4bil was contributed to the national economy by the micro, small and medium enterprises (MSMEs) sector last year, reinforcing its position as a key player in the Malaysian economy, says Datuk Ewon Benedick. Citing figures from the Statistics Department, the Entrepreneur and Cooperatives Development Minister said MSMEs' gross domestic product grew by 5.8% last year, continuing to outperform the national GDP, which grew by 5.1% and non-MSMEs at 4.7%. According to Ewon, this was largely fuelled by the construction sector, which registered a double-digit growth of 17.3%. 'This marks the most robust growth recorded by MSMEs in the construction sector over the past decade, supported primarily by the special trades sector,' he said at a press briefing held at SME Corporation Malaysia (SME Corp) here to announce the performance of MSMEs in 2024. During the session, Ewon said MSME exports also surged by 31.3%, or by almost RM50bil, to RM196.8bil. 'This is remarkable compared with the 3% growth recorded in 2023, with a value of RM149.9bil,' he said. MSME exports, Ewon said, also grew at a faster pace compared with non-MSMEs or large firms. He said the surge in the momentum of exports was anchored by the services sector, which increased from RM33.2bil to RM71.3bil in 2024, primarily supported by tourism-related industries. According to the minister, Malaysia received a total of 38 million foreign tourists in 2024, an increase of 31.1% compared with the previous year. 'This had a substantial spill­over effect on MSME exports, given that more than half of MSMEs are actively involved in tourism-related activities. 'The 30-day visa exemption for tourists from China and India also contributed to the surge in tourist arrivals,' Ewon said. On the employment aspect, he said MSMEs employed 8.1 million workers last year, contributing to 48.7% of total employment in 2024. MSME labour productivity, meanwhile, was at RM80,507 per worker, up from the RM78,475 recorded in 2023. Ewon urged MSMEs to leverage various free trade agreements signed by Malaysia to improve their potential in the global supply chain. 'FTAs not only open access to new and broader markets but also offer an advantage through reduced tariffs and import duties, alongside improving cross-border trade cooperation,' he said, adding that the ministry will also strengthen regional economic cooperation. Moving forward, Ewon said the ministry will carry out targeted intervention programmes to develop MSMEs. 'We have also aimed to increase the number of medium­-sized enterprises from being only 1.6% at present to 5% by 2030,' Ewon said. He stressed that the continuous development of MSMEs will continue being the government's priority throughout the 13th Malaysia Plan. 'The ministry, SME Corp and our agencies will remain committed and responsive towards efforts in ensuring the national entrepreneur ecosystem will always be improved,' the minister said. Also present at the briefing were SME Corp chairman Tan Sri Bernard Dompok, Deputy Entrepreneur and Cooperatives Development Minister Datuk Seri R. Ramanan, ministry secretary-general Datuk Seri Khairul Dzaimee Daud, SME Corp chief executive officer Rizal Nainy and Statistics Department chief statistician Datuk Seri Mohd Uzir Mahidin.

Cross-border insolvency issue tops Asean Law Forum
Cross-border insolvency issue tops Asean Law Forum

The Star

time37 minutes ago

  • The Star

Cross-border insolvency issue tops Asean Law Forum

Legal commitment: Azalina (centre) states that the forum will see Asean law ministers commit to legal reforms. — Bernama KUALA LUMPUR: The issue of cross-border insolvency is set to be one of the main highlights at the Asean Law Forum (ALF) 2025, which will be held at the Kuala Lumpur Convention Centre from Aug 19 to 21, says Datuk Seri Azalina Othman Said. The Minister in the Prime Minister's Department (Law and Institutional Reform) said cross-border insolvency is considered a solution to business-related issues, leveraging alternative dispute resolution mechanisms, rather than relying solely on court proceedings. 'When Asean countries cooperate with each other, (whether involving) companies or governments, and encounter obstacles in certain matters, they can turn to international platforms for mediation or cross-border insolvency proceedings,' she told reporters at the ALF 2025 pre-launch ceremony at the Parliament building yesterday, Bernama reported. The forum, which will bring together international law experts and practitioners, is expected to address regional and international legal issues such as international mediation, online security, cybercrime, human rights in business, and reforms in criminal and commercial law. Azalina also said the forum will witness the adoption of a joint statement by Asean Ministers of Law on the Empowerment of International Commercial Arbitration and Mediation, symbolising Asean nations' commitment to legal reform. 'This further strengthens cooperation, reflecting Asean's core vision based on the rule of law for sustainable economic growth and regional integration,' she added. Prime Minister Datuk Seri Anwar Ibrahim is scheduled to deliver the keynote address at the forum on Aug 21. Azalina said the forum marks a new chapter in the efforts of the Legal Affairs Division of the Prime Minister's Department to strengthen the nation's legal framework, in line with Malaysia's chairmanship of Asean this year.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store