Malaysia & Indonesia to work together on Asean vehicle

August 14, 2018

Malaysia and Indonesia to collaborate on joint venture to produce Asean vehicle.

Under a memorandum of understanding signed in Jakarta recently, Malaysia and Indonesia will work together on producing a new Asean vehicle.

The Malaysian Automotive Institute (MAI) and the Indonesian Automotive Institute (IOI) will be in charge of running the venture.

They will establish a new brand producing vehicle components and improving the automotive manufacturing workforce.

Minister Darrell Leiking signed the MoU, during a visit to follow up the meeting between Prime Minister Dr Mahathir Mohamad and President Joko Widodo in June.

MAI CEO Mohamad Madani Sahari said the two countries will also look into the possibility of manufacturing cars that run on biodiesel, utilising palm oil.

“We will have more cooperation on research to advance our capabilities in creating electrical, hybrid vehicles,” said Madani.

Indonesian Industry Ministry’s director-general of resilience and development of international industrial access, Gusti Putu Suryawirawan, said at present there were 2,000 Indonesian and Malaysian automotive component makers.

He said the agreement sought to create multiple types of vehicles, including passenger cars, commercial and special-purpose vehicles.

“There are more than 640 million inhabitants in Asean.

“They will grow, and so will their purchasing power for vehicles. Therefore, we will do our best to supply to that market,” said Putu.

Both countries are encouraging other Asean members most notably Thailand, which is the region’s largest automotive producer, to join them.

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