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DRB-Hicom, Malakoff keen to invest in Pagoh Special Economic Zone — PM Muhyiddin

DRB-Hicom, Malakoff keen to invest in Pagoh Special Economic Zone — PM Muhyiddin

27 Mar 2021

DRB-Hicom Bhd and Malakoff Corporation Bhd have expressed their interest to invest in the Pagoh Special Economic Zone that was officially launched here today.

Announcing this, Prime Minister Tan Sri Muhyiddin Yassin said DRB-Hicom, through subsidiary Proton Holdings Bhd, plans to build an automotive-related component manufacturing plant similar to the one in Tanjung Malim, Perak.

“[These investments] involve two large companies… I have directly contacted Tan Sri Syed Mokhtar Al-Bukhary, the biggest shareholder in both companies (DRB-Hicom and Malakoff), and received confirmation of what I announced just now (during his speech at the launch) with regard to his interest to come here,” he told a media conference after launching the first phase of the Pagoh Special Economic Zone at Sime Darby’s sales gallery here.

As for Malakoff, he said one of the group’s subsidiaries aims to build a plant to produce solar panels for solar power generation.

”This will also involve a large investment and a lot of employees, and I very much welcome the investments. I hope it can be carried out in this first phase,” said Muhyiddin, who is also Pagoh Member of Parliament.

Earlier, in his speech, Muhyiddin, who is also Gambir Assemblyman, said the government had to-date attracted investment commitments worth more than RM200 million for the first phase of the Pagoh Special Economic Zone development.

He said the maiden phase, with an estimated gross development value of RM1.1 billion, will span five to seven years and include a 430-acre (174-hectare) industrial area and a 420-acre (170-hectare) entrepreneurship hub.

“The government recognises that foreign direct investment (FDI) and domestic direct investment (DDI) will play a critical role in driving economic growth in Pagoh.

“To attract more FDI and DDI, the government is committed to create a conducive environment by offering various fiscal and non-fiscal incentives to attract foreign and local investors who are capable of stimulating rapid growth for Pagoh Special Economic Zone Phase 1,” he said.

Muhyiddin also said the government had approved applications under the special incentive package for the economic zone which offered income tax, stamp duty and sales tax exemptions for five years for companies undertaking targeted key activities.

In addition, he said, the government will extend incentives to companies recognised as “first mover companies” which could bring in high-value activities to the Pagoh Special Economic Zone through the special incentive package.

“The zone will prioritise targeted industries that have been identified. They include industries involved in wood-based and furniture products, textile products, manufacture of food and beverages, automotive engineering products, electrical and electronics products, as well as green technology and agriculture-based products,” he said.

The prime minister said the special economic zone represented part of the Perikatan Nasional government’s fulfilment of its pledge to safeguard not only the welfare of Malaysians in Pagoh but also to increase income opportunities for Malaysians in general, so that the country’s prosperity could be shared and distributed in a fair and equitable manner across all levels of society.

Source: Bernama

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