Business

‘Geely’s RM30 bil investment opens new page for national EV ecosystem’

Mosti minister Chang Lih Kang says two more Chinese firms interested in similar move

Updated 3 years ago · Published on 06 Apr 2023 2:08PM

‘Geely’s RM30 bil investment opens new page for national EV ecosystem’
Malaysian government leaders witness the signing of heads of agreement between Zhejiang Geely Holding Group Co Ltd and DRB-Hicom Bhd for the development of the Automotive High-Tech Valley on April 1. – Bernama pic, April 6, 2023

PUTRAJAYA – Chinese automaker Zhejiang Geely Holding Group Co Ltd (Geely) will invest RM30 billion in the development and commercialisation of the Automotive High-Tech Valley (AHTV) in Perak’s Tg Malim, said Science, Technology, and Innovation Minister Chang Lih Kang.

He said the AHTV will open a new chapter in Malaysia’s electric-vehicle (EV) ecosystem – encompassing the automotive and mobility value chain, from high-tech global research and development centres and related support services for the nation’s new energy vehicle industry.

Geely’s investment is in line with the strategic framework for EV development in the country developed by his ministry, Chang said in a press conference here today, in conjunction with the results of Prime Minister Datuk Seri Anwar Ibrahim’s recent official visit to China.

“Under that strategic framework, we aim for EV usage to reach 38% by 2040 and this (investment) would be a good start. 

“It would help us to build a complete ecosystem on EV and I am convinced that we are able to achieve 38% of EV usage,” he said.

Chang said two more EV companies from China, namely China Harmony Auto Holding Ltd and GAC AION New Energy Automobile Co Ltd, have also shown interest in investing in the country’s EV development and their representatives will be in Malaysia this Saturday to survey the EV ecosystem.

He said Mosti will also receive an investment of RM2.5 billion from China’s Shanghai DC-Sciences Co Ltd for the development of a data centre in Sedenak, Johor.

Through Anwar’s visit to the country, Malaysia received its highest investment commitment in history from China – amounting to RM170 billion – as a result of the signing of 19 memoranda of understanding between Malaysian and Chinese companies.

“Mosti received a total of RM32.5 billion out of the total RM170 billion investments received by the country as a result of the prime minister’s visit to China,” said Chang, who also described Anwar’s visit as “very successful”. – Bernama, April 6, 2023

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