KUALA LUMPUR (Jan 30): Proton Holdings Bhd is said to be looking to acquire a piece of land in Tanjung Malim, Perak, measuring 1,500 acres, to venture into the automotive parts market, according to a local news report.

If the land deal goes through and plans for it to be developed into an auto parts industrial zone materialise, Tanjung Malim will then serve as a new technology park strategically located between Kuala Lumpur and Penang, Second Minister of International Trade and Industry Datuk Seri Ong Ka Chuan was quoted by Nanyang Siang Pau as saying.

"A single car has about 1,000 automobile parts. If the government ups its effort to promote the development of this industry, Malaysia's annual exports of auto parts could go up to RM40 billion-RM50 billion," according to Ong.

In 2017 alone, Malaysian exported RM12 billion worth of auto parts, and this was achieved before strong endorsement from the government, Ong added.

Given China's Zhejiang Geely Holding Group Co Ltd now holds 49.9% stake in Proton, promoting the auto parts manufacturing industry means local manufacturers can serve not just the Proton market, but also that of Geely and Volvo's, the report noted.

This, it added, would bode well for the government’s initiative as outlined in Budget 2018, which is to develop Tanjung Malim into a Proton City, Educity and Youth City.

“If all goes well, tens of thousands of employment opportunities can be created, and locals residing in the area will not have to leave in pursuit of better job prospects [elsewhere],” Ong said.