RM600m boost for DRB-Hicom, Volkswagen plant in Pekan


PEKAN : DRB-Hicom Bhd and Volkswagen AG will pump in an additional RM600 million to their RM1 billion collaboration in an assembly plant here, Prime Minister Datuk Seri Najib Razak announced today.

The additional allocation will increase the total investment in making Pekan the country’s automotive hub to RM4.5 billlion which will create 10,580 jobs and generating RM12 billion in gross national income by 2015.

In his speech at a meeting with DRB-Hicom employees, he said the development of the automotive industry in Pekan has been impressive. 

“From only 200 workers in 1984, the Automotive Complex has now close to 3,200 employees and stands in the same rank of other international automotive producers such as Isuzu, Suzuki, Mercedes Benz and Volkswagen,” he said. 

DRB-Hicom chairman Datuk Seri Mohd Kamil Jamil in his speech thanked Najib for his “intervention” back in the middle of 2010 which had led to Volkswagen’s decision to set up its assembly plant for the Asean region here. 

“Not many know this story but it was the prime minister who was responsible for this. Najib cut his annual holiday short and met with the top management of Volkswagen and shortly after, we signed the collaboration. If not for his intervention, Thailand was Volkswagen’s initial choice,” he said. 

In response to this, Najib said the government’s business friendly policy and its quick action on matters pertaining to the country’s future have contributed a lot to the well-being of the rakyat. 

“In the case of Pekan and our commitment to make it the hub for the automotive industry, the government acted very fast in approving Volkswagen’s entry into Pekan. And the rest , like people say is history,” he said. 
He said BN is a government which is always ready to help the business community and putting in place various incentives to attract investments into the country. 

Prime Minister Datuk Seri Najib Razak in a meeting with DRB-Hicom staff at DRB-Hicom Automotive Complex in Pekan. -- NSTP/Aizuddin Saad

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