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Call On Malaysian, Thai Companies To Collaborate To Co-Produce Auto Parts

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KUALA LUMPUR: Malaysian car parts makers should collaborate with their Thai counterparts to enable them to buy heavy machines and co-produce high-quality parts for developed markets.

Thai Sub-contracting Promotion Association President Somkiat Chupukcharoen said as auto parts manufacturers from both countries were using similar production line technology, such collaboration should be pursued to reduce manufacturing and operation costs.

Thai car parts makers, numbering 2,400, are more prominent in the pick-up truck segment, while some 300 Malaysian auto parts manufacturers specialised in passenger car parts for export.

“It is important for the companies (from both countries) to have combined investment in purchasing heavy machines, sharing know-how as well as focusing on entering developed markets,” he said here Tuesday.

He was speaking at a news conference to promote the ASEAN’s Largest International Machine Tool and Metalworking Technology Exhibition and Conference (Metalex 2015) which will be held in Bangkok from Nov 18-21.

In conjunction with Metalex 2015, the Federation of Malaysian Manufacturers will hold a panel discussion titled “The synergy of Malaysian and Thai Auto Parts Makers to Drive Beyond ASEAN Border”.

Metalex 2015 will showcase more than 70,000 manufacturers, and new ways of upgrading productivity from over 4,000 new metalworking machineries, technologies and solutions.

Meanwhile, Delloyd Venture Bhd automotive parts managing director Datuk Noor Azmi Jaafar said companies that sourced raw materials locally and regionally would not fare badly due to currency depreciation.

“For instance, 80 per cent of raw materials for Delloyd’s products are sourced from Malaysia and Thailand, so the impact is minimal.

“Malaysia is expert in plastic-based auto parts, while Thailand understands more about metal-based products. That’s why strategic alliances between Malaysian and Thai companies are crucial to cushion the current conditions.

“Small and medium enterprises should also leverage on the ASEAN free trade agreement to cater to more markets,” he said.


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