IPOH, Aug 17 — Mobile Starhill (M) Sdn Bhd today signed an agreement with several players of automotive component industries at Ningbo, China to develop the Integrated Automotive Component Mega Hub in Tanjung Malim.

Through this agreement, automotive component producers under the Ningbo Automotive Component International Business Chambers will work with Mobile Starhill to develop the hub on a 40.47 ha site owned by State Economic Development Corporation (PKNP).

The signing ceremony was witnessed by Perak Mentri Besar Ahmad Faizal Azumu while Mobile Starhill was represented by its executive chairman Tan Sri Dr Goh Tian Chuan.

The agreement today was a follow-up agreement sealed between Mobile Starhill and PKNP on Aug 2 to develop the hub at Tanjung Malim near Proton City.

With a gross development value of RM7 billion, the hub would handle the production, installation, and system sending with the automotive module.

In his speech, Ahmad Faizal welcomed the joint venture as it would help to spur the state’s economic development and is expected to create close to 10,000 job opportunities.

Ahmad Faizal said the hub was aimed at supporting the plans by Geely and Proton to explore the South-east Asia market by concentrating on right-handed driving vehicles and to fulfill the request of other vehicle producers.

With the hub, some 500,000 units of vehicles are expected to be produced for the Asean region, which has a population of 600 million people.

"I fully support this effort that is expected to create 10,000 jobs in Perak especially in Tanjung Malim and further help to spur the state and Malaysia’s economy,” said Ahmad Faizal.

"I hope this cooperation will be a platform to attract more automotive component industry players to come,” he added.

The state, said Ahmad Faizal, would start to introduce tax exemption incentives to strategic investments and also grants for technical and engineering training for between five and 10 years.