By AZREEN HANI / Pic By TMR

The development of an Asean car can lead to a regional-led automotive initiative such as the formation of Asean Motor Corp (AMC), said WSA Group chairman and CEO Datuk Dr Wan Mohamed Wan Embong.

“It may just be the stepping stone to the formation of a much bigger plan to develop into an Asean initiative leading to the formation of AMC,” Wan Mohamed said in a recent statement.

“I am confident that the AMC could target a market share of about 20%-25% in Asean countries that would be translated to an annual sale of two million cars with potential growth of 5% per year.”

Wan Mohamed said with a pragmatic Asean automotive policy, the production and sale target could possibly be higher than 25% of Asean’s market.

“Being part of Asean offers a good place to start a regional automotive cluster. One has to remember that Asean has a 650 million population and is still growing at a rapid rate. So, too, its economy,” he explained.

Prime Minister (PM) Tun Dr Mahathir Mohamad had announced the development of an Asean Car during his official visit to Jakarta, Indonesia, in June.

“We wish to revive the Indonesia-Malaysia car which would be meant for the Asean market,” Dr Mahathir said at a press conference with Indonsian president President Joko Widodo.

Almost two months after the announcement, the Malaysia Automotive Institute (MAI) and the Institut Otomotif Indonesia (IOI) inked an agreement last Friday to foster long-term collaboration in the development of the automotive industry.

MAI said in a statement the areas of collaboration within the Memorandum of Agreement (MoA) are geared towards the preparation of the supply chain through the enhancement of product, pro- cess and research capabilities, to be followed by the development of an Asean car.

“This is a testament to strong bilateral economic relationships between Malaysia and Indonesia, as mentioned by the PM during his recent meeting with President Jokowi,” Minister of International Trade and Industry Darell Leiking said.

The MoA focuses on the strategic and working relationship between MAI and IOI in the areas of human capital and supply chain development to enhance the capabilities of vendors, market expansion, research collaboration for product technology, including hybrid, electric and next-generation vehicles, process technology and research on biodiesel.

The MoA ceremony were witnessed by Darell and Indonesian Industry Ministry’s DG of resilience and development of international industrial access, Gusti Putu Suryawirawan.

MAI CEO Datuk Madani Sahari said both MAI and IOI will continue to support and facilitate partnerships between Malaysian and Indonesian vendors through various developmental pro- grammes to enhance the capabilities of the supply chain.

“More programmes will be organised by MAI and IOI in both exploring potential market opportunities and the transfer of technology,” he said.