business

Naza, Berjaya team up for govt tender

KUALA LUMPUR: Naza Group and Berjaya Group, two family-driven conglomerates, have submitted a joint bid for the concession to supply and manage the government's fleet of vehicles.

Sources said the groups had formed a 70.30 consortium in favour of Naza, pooling their vast automotive and technology experience and expertise to offer "a new era of fleet management system".

"Naza and Berjaya are more than capable of managing the concession, given their sterling track record in automotive supply chain. They represent many international auto brands and nearly 200 points of sales and aftersales service," one source told the New Straits Times.

"If the government is looking for a credible Bumiputera company, Naza fits the bill. It has experience in vehicle fleet management through Naza Prestige. Berjaya's involvement adds strength to the group," the source added.

Naza, founded by the late Tan Sri SM Nasimuddin SM Amin, is the local distributor and assembler of South Korea's Kia as well as French marques Peugeot and Citroen, besides being involved in the property, food and bevarage and hospitality sectors, among others.

Tan Sri Vincent Tan-controlled Berjaya, through Bermaz Auto Bhd, is the distributor of Mazda vehicles, It also deals in other sectors such as telecommunications, F&B, lottery and casino operations,, hotel and resort development.

The NST previously reported that following the end of Spanco Sdn Bhd's 25-year concession last year, the government had asked interested parties to submit request for proposal (RFP).

The likes of Hertz Malaysia, Avis Malaysia and even Spanco were understood to have submitted their RFP.

The government was looking at Proton, Honda and Toyota vehicles for use by ministers, deputy ministers, top civil servants as well as its agencies.

It is learnt that the deadline to submit the RFP was last month.

Another source said the Naza-Berjaya consortium can offer fleet management with high quality digital and mobility solutions at reasonable cost. This includes real-time tracking information applying the integration of GPS with wireless communications and the internet to specify accurate location and status of any mobile workforce, as well as speed monitoring, safety monitoring and fuel consumption.

"Berjaya, for instance, has an in-house fleet management system and software capability called GPS Tech solutions under GPS Tech Solutions Sdn Bhd to give value-added service for government fleet to be tech-savvy. Naza also has a software communication unit,” the source added.

The source said GPS Tech’s portfolio of more than 100 companies has placed the company as the country’s leader in providing field service solutions.

“GPS Tech’s fleet management solution is designed to provide real-time tracking information applying the integration of GPS with wireless communications and the internet to specify accurate location and status of any mobile workforce.”

Meanwhile, some industry observers pointed out that the open tender did not reflect a level playing field.

"How can this be a fair open tender when the government has identified in advance Honda, Proton and Toyota vehicles to be in the fleet. Some bidders have an 'unfair' advantage over others," one of them said.

"Any other contender for the concession apart from Avis Malaysia will have to buy the vehicles at higher cost," he added.

Shah Alam-based Avis Malaysia is backed by DRB-HICOM Bhd and Avis, which is a large car rental company globally.

DRB-HICOM partially owns Proton Holdings Bhd and Honda Malaysia Sdn Bhd.

Hertz Malaysia, meanwhile, is operated by Sime Darby Bhd's unit Sime Darby Rent A Car Sdn Bhd under licence from Hertz Global Holdings Inc, another global car rental firm.

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