DRB – Hicom to Invest RM1bil

The planned RM1bil investment by DRB - Hicom Bhd to accelerate the development of Proton City in Tanjung Malim, Perak over the next five years may be a move to consolidate Proton's manufacturing activities in a single location, automotive analysts say. They pointed out that news reports had claimed that Proton’s manufacturing land bank of 250 acres in Shah Alam could have a gross development value of more than RM1bil. An analyst also thinks that a property development play of the Shah Alam land bank would be a good move, however DBR- Hicom would need to look at issues such as the costs of moving the production facilities from Shah Alam to Tanjung Malim, as well as the employees’ concerns, as they might not want to move from Shah Alam to Tanjung Malim.

According to Menteri Besar Datuk Seri Dr Zambry Abdul Kadir, DBR – Hicom plans to invest RM1bil in the next 5 years and make Tanjung Malim the main Proton car manufacturing centre. He continued that Tanjung Malim was not fully developed as an automotive city, and only about 30% of the land had been used. According to the Proton City website, the township consists of residential, commercial, institutional as well as industrial parcels with seven lakes It is located about 5km north of Tanjung Malim, and 90km from Kuala Lumpur. It also noted that as the Volkswagen Group owned other marques such as Audi, which DRB-Hicom is already distributing in Malaysia, there is potential for similar tie-ups.