Latest news with #MustamirMohamad
The Star
5 days ago
- Automotive
- The Star
Sime UMW spending up to RM375mil for FY26
PETALING JAYA: Sime Darby Bhd 's (Sime) unit, Sime UMW, formerly UMW Holdings Bhd , is ramping up capital expenditure (capex) to RM375mil for the financial year ending June 30, 2026 (FY26) from about RM300mil in FY25. Although a diversified conglomerate with businesses spanning automotive, equipment, manufacturing and engineering and aerospace, about 85% of Sime UMW's earnings come from its automotive division. Sime UMW owns a 38% stake in Perusahaan Otomobil Kedua Sdn Bhd (Perodua), alongside Daihatsu Motor Co Ltd with 25%, MBM Resources Bhd with 20%, Permodalan Nasional Bhd with 10% and Mitsui & Co Ltd with the remaining 7%. Daihatsu, in turn, is wholly owned by Toyota Motor Corp. Sime UMW also owns a 51% stake in UMW Toyota Motor Sdn Bhd, the joint venture responsible for the manufacturing and sale of Toyota vehicles in Malaysia, with the remaining 49% held by Toyota and its affiliate. Most of the upcoming capex will go into new models and facelifts for Toyota, said Sime UMW managing director Datuk Mustamir Mohamad. He said Perodua's pipeline includes a B-segment sport utility vehicle – similar to Thailand's Yaris Cross – due in 2026, and a full model change for the Myvi in 2027. The long-awaited Perodua electric vehicle (EV) also will debut by year-end, priced around RM80,000, he added. But Mustamir said: ' Battery costs are still very high – up to 50% of total cost. We're working with a foreign engineering firm, separate from Daihatsu, and we'll disclose more in October.' The initial EV production volume is modest, around 6,000 units annually. Malaysia is looking to rationalise its blanket fuel subsidy for RON95, but about 85% of the population – largely the B40 and M40 groups – are expected to remain eligible. On this, Mustamir said it is unlikely to dent Perodua's momentum, given that its core customers fall within the subsidised income segments. 'There's also a possibility that some T15 consumers may downgrade to smaller cars to save on fuel, which could drive demand for Perodua models,' he said. 'At the same time, those looking at fuel savings may pivot to hybrids, where Toyota has a strong portfolio.' Meanwhile, incentives for fully imported or CBU EVs are set to expire by end-2025. Perodua currently exports CBU units to markets such as Brunei, Sri Lanka and Indonesia, but export volumes remain below 1% of domestic sales. Mustamir said this was largely due to a persistent backlog in local demand. While the backlog has declined from over 100,000 units to about 80,000 currently, he said Perodua continues to prioritise domestic deliveries. 'Domestic demand remains strong,' he said. The Malaysian Automotive Association expects total industry volume or TIV to normalise to around 780,000 units in 2025, from a record 817,000 in 2024. Mustamir, however, sees the year ending closer to 800,000, with demand potentially hovering between 800,000 and 850,000 in the coming years. On exports, Mustamir noted that margins were thinner due to higher logistics and set-up costs. 'The competition is tougher and there are local content requirements for CKD units,' he said. Still, he said Perodua has long-term plans to grow exports. Sime completed its RM5.84bil acquisition of Sime UMW in 2024, buying a 61.2% stake from Permodalan Nasional Bhd for RM3.57bil in 2023, followed by a mandatory general offer for the remaining 38.8% at about RM2.27bil.
The Star
6 days ago
- Business
- The Star
Sime UMW in the fast lane
Mustamir: Our operations are not only in Malaysia – they span Singapore, Vietnam and a bit of China. When Sime Darby Bhd (Sime) acquired UMW Holdings Bhd (now Sime UMW) for RM5.84bil in 2024, it was driven by a clear goal – to boost revenue growth and improve operational efficiency. Fast forward to 2025 and much of the heavy lifting has been done, with RM50mil in recurring annual savings taking shape. Datuk Mustamir Mohamad, the managing director of Sime UMW, shares that there were opportunities to streamline operations at the head office. About RM30mil in savings came from 'right-sizing' efforts, mainly focused on the head office rather than strategic business units.
