In 1974, Malaysia’s second Prime Minister, Tun Abdul Razak Hussein, made his first official trip to China and was graciously welcomed by his Chinese counterpart, Zhou Enlai. After reaffirming ancient sea-faring ties that dated all the way back to the Melaka Sultanate in the 15th century, both premiers signed a communique to establish diplomatic relations between the two countries in Beijing.
This year marks the 50th anniversary on the establishment of diplomatic relations between China and Malaysia. Over the past five decades, economic and trade exchanges between both countries have skyrocketed. The Chinese Embassy in Malaysia reported that bilateral trade between China and Malaysia has increased more than 950 times, from $200 million in 1974 to $190.24 billion in 2023.
China has been Malaysia’s largest export partner in the last 15 years and a key player in China’s Belt Road Initiative, as well as signatory to the free trade agreement among Asia-Pacific counties known as the Regional Comprehensive Economic Partnership.
When Geely acquired 49.1% stake in Malaysian car brand PROTON in 2017, it only reinforced a relationship that is already celebrated as a cornerstone of bilateral economic cooperation.
Honouring PROTON’s successes and milestones
During a recent visit to PROTON’s headquarters in Shah Alam, China’s Minister of Industry and Information Technology, Mr. Jin Zhuanglong, highlighted China’s active role in transforming the global automotive industry, particularly in climate change and green energy. He encouraged more Chinese companies to invest in Malaysia, offering high quality products and services to support local economic and social development.
Mr. Jin was present to witness a ceremony to commemorate PROTON’s delivery of its 5 millionth vehicle and gained in-depth understanding of the win-win cooperation model between Geely and PROTON. Over seven years of integration, Geely has helped revitalised PROTON, supporting comprehensive transformations in R&D, manufacturing, design, quality and marketing, resulting in increased sales and market share in the Malaysian market.
Since the launch of the Proton X70 in 2018, PROTON has introduced two other jointly-developed SUV models with Geely – the X50 and the car maker’s first ever new energy vehicle, the X90. Collectively, these three models have sold more than 217,000 units, ranking PROTON as the top SUV brand in Malaysia. Another collaborative project developed was the S70 sedan, along with local assembly of Geely’s 1.5 TGDI (Turbo Gasoline Direct Injection) engine.
A week prior to the Minister’s visit, PROTON marked another major milestone with the introduction of its electric vehicle sub-brand, e.Mas. Its first model will be jointly developed with Geely and is expected to launch by end of 2024. The introduction of a standalone electric vehicle brand emphasizes PROTON’s commitment to innovation and sustainability, further strengthening its leadership in the Malaysian automotive industry.
Embracing new opportunities for regional economic upgrade
Malaysia’s automotive industry in presently undergoing transformation and upgrade, with increased efforts to enhance technological innovation and improve supply chain collaboration. Based on its successful venture with PROTON, Geely is once again collaborating with PROTON’s major shareholder, DRB-HICOM, to build the Automotive Hi-Tech Valley (AHTV) in PROTON’s manufacturing homeland of Tanjung Malim.
AHTV is poised to be a premier hub for ASEAN new energy, as well as technology research and manufacturing. By 2035, AHTV aims to achieve an annual production capacity of 500,000 vehicles, with 50% destined for export. Additionally, it plans to establish a supply chain system producing 1 million sets of parts, with 50% serving the global market. This initiative will usher in a new era for the Malaysian automotive industry.
With full implementation of the Regional Comprehensive Economic Partnership underway, there is strong momentum to spur regional economic integration. The Malaysian market is a strategic choice for Geely and a bridgehead for entering the Southeast Asian market. Geely actively embraces new opportunities to solidify its ASEAN economic foothold, and AHTV will serve as an important strategic layout.
Eric Li, Chairman of Geely Holding Group, said that Geely will continue to strengthen cooperation with Malaysian stakeholders to jointly build AHTV. The development will incorporate a new transnational park concept led by Chinese private entities, with participation from both domestic and international partners, and full adherence to global investment standards. This aims to stimulate industrial growth between China and Malaysia.
Hopeful for the future
In a recent “Dialogue” episode by China’s CCTV, Malaysian Prime Minister Anwar Ibrahim stressed the importance of Malaysia’s friendship with China. He mentioned the steady rise in trade and investment exchanges between the two nations, which fosters mutual trust. Geely’s automotive contributions and investments in education and research exemplify this partnership, benefiting the broader Malaysian population and making it an absolute win for the country.