29 November 2012
Q2 revenue up by 129%
Q2 revenue up by 129%
29 November 2012

Shah Alam, 29 November 2012 – DRB-HICOM Berhad (‘DRB-HICOM“ or the “Group”) today reported its financial result for the period ended 30 September 2012 with an increase in Group Revenue to RM7.00 billion from RM3.06 billion in the corresponding period ended 30 September 2011. The Group“s 129% rise in revenue was mainly attributable to the inclusion of sales revenue of PROTON Holdings Berhad (“PROTON”).

However, the additional finance cost due to new borrowings taken for the acquisition of PROTON and lower profit contribution from the automotive sector had resulted in a 16% dip in Group pre-tax profit of RM260.58 million for the period under review compared to RM310.37 million in the corresponding period ended 30 September 2011.

Compared with the preceding quarter ended 30 June 2012, the Group recorded a higher pre-tax profit of RM162.66 million for the quarter ended 30 September 2012 from RM97.92 million, an increase of RM64.74 million. The major contributors to the increase were the better performances by subsidiary companies and higher share of results of jointly-controlled entities and associated companies.

Dato“ Sri Haji Mohd Khamil Jamil, DRB-HICOM Group Managing Director said the Group is implementing several initiatives to streamline and align the Group“s businesses, operations and investments, which include among others the business and operational rationalisation in the retail and after-sale-services of PROTON vehicles in Edaran Otomobil Nasional Berhad (“EON”) and Proton Edar Sdn Bhd.

“The Group“s disposal of its wholly-owned subsidiary HICOM Power Sdn Bhd“s businesses for RM575 million is also a step towards streamlining the Group“s businesses. The disposal which has been approved by shareholders on 26 November 2012 will reduce borrowings and interest expense for the Group,” said Dato“ Sri Haji Mohd Khamil Jamil.

“We will continuously find ways to create greater group-wide synergistic benefits towards achieving greater efficiency and cost savings, as well as strengthening the Group“s businesses,” added Dato“ Sri Haji Mohd Khamil.

02 November 2012
Proton Edar Acquires EON
Proton Edar Acquires EON
02 November 2012


Shah Alam, 1 November 2012 – As part of the DRB-HICOM Group (“Group”)“s strategy to streamline and align its business operations, DRB-HICOM Berhad (“DRB-HICOM”) today announced that it had completed the internal reorganisation exercise to rationalise and align the Group“s businesses and investments in the business of marketing of Proton motor vehicles, related spare parts and servicing of Proton vehicles (“Proton Business”) in Edaran Otomobil Nasional Berhad (“EON”) and Proton Edar Sdn Bhd (“PESB”), a wholly-owned subsidiary of Proton Holdings Berhad (“PROTON”) for a total cash consideration of RM400,800,000 (“Internal Reorganisation”).

The Internal Reorganisation among others involved the sale, transfer and assignment of the rights, title and interest in all the assets used in the Proton Business, all liabilities relating to the Proton Business and employees employed by EON for the Proton Business to PESB by EON, the acquisition of 100 per cent equity interest in EON Properties Sdn Bhd, a wholly-owned subsidiary of EON involved in property management by PESB; and the acquisition of 100 per cent equity interest in Automotive Conversion Engineering Sdn Bhd, a wholly-owned subsidiary of EON involved in the conversion and modification of motor vehicles and distribution of car accessories business, by PESB.

The internal reorganisation also involved the acquisition of 40 per cent equity interest in Proton Parts Centre Sdn Bhd (“PPCSB”) by Proton Marketing Sdn Bhd (“PMSB”) from EON and the acquisition of 5 per cent equity interest in PPCSB by PMSB from HICOM Holdings Berhad.

“Besides being one of the Group“s strategy to achieve greater operational efficiency, establish cost savings and enhance the Group“s future earnings, the Internal Reorganisation will also ensure the seamless implementation of strategic measures to achieve performance excellence in distribution, logistics and after sales service. The Group will also be able to leverage on specialised expertise with the consolidation of the workforce, allowing the Group to augment its service offerings for the automotive industry,” commented Dato“ Sri Haji Mohd Khamil Jamil, Group Managing Director of DRB-HICOM.

“This reorganisation also means that we are delivering our promises of improvements in Proton,” he added.

DRB-HICOM has completed the acquisition of 100 per cent equity interest in Proton on 26 June 2012. Barely four months after the acquisition, DRB-HICOM is now mobilising improvement measures in Proton.

19 October 2012
Group Managing Director Honoured
Group Managing Director Honoured
19 October 2012


DRB-HICOM Berhad“s Group Managing Director Dato“ Sri Haji Mohd Khamil Jamil appointed as Universiti Malaysia Pahang“s first Pro-Chancellor.

Kuantan, 13 October – DRB-HICOM Berhad“s Group Managing Director Dato“ Sri Haji Mohd Khamil Jamil was inaugurated as the first Pro-Chancellor of Universiti Malaysia Pahang (UMP), during its seventh convocation ceremony.

He received his appointment from the Chancellor of UMP, the Crown Prince of Pahang, His Royal Highness Tengku Abdullah Al Haj ibni Sultan Haji Ahmad Shah Al Musta“in Billah.

In his maiden speech as the Pro-Chancellor, Dato“ Sri Haji Mohd Khamil thanked His Royal Highness Tengku Abdullah Al Haj for the great honour bestowed upon him.
He called upon the students to appreciate the vast opportunities available for those wanting to further their studies, brought about by the numerous development initiative since independence, which pushed for democratisation of the education system.

He also cautioned the students on today“s highly competitive employment market and urged them to develop a high threshold for frustration in their quest to achieve their goals in life. “Only those who exhibit high level of quality and merit will attract the interest of potential employers, and will stand out in today“s competitive employment market”

04 October 2012
OSI -Faurecia Collaboration
OSI -Faurecia Collaboration
04 October 2012



Shah Alam, 4 October 2012 – As part of its expansion plans, Oriental Summit Industries Sdn. Bhd. (“OSI”), a subsidiary of DRB-HICOM Berhad (“DRB-HICOM” or “the Group”) today signed a Joint Venture Agreement (“JVA”) with Faurecia Exhaust International SAS commonly known in the market as Faurecia Emissions Control Technologies (“FECT” or “Faurecia”), to manufacture, assemble, deliver and sell automotive exhaust systems and vehicle components for Original Equipment Manufacturers (“OEMs”) in Malaysia via a joint-venture company, Faurecia HICOM Emissions Control Technologies (M) Sdn. Bhd (“Faurecia HICOM”).

The signing of the JVA was witnessed by YBhg Dato“ Sri Haji Mohd Khamil Jamil, Group Managing Director of DRB-HICOM Berhad at Holiday Inn Kuala Lumpur Glenmarie, Shah Alam. Encik Radzaif Mohamed, Director of OSI, signed on behalf of OSI, while Mr. Jean-Marc Hannequin, Executive Vice President of FECT signed on behalf of FECT, witnessed by Mr. Arnaud Lesschaeve, Vice President, Asia Division, FECT.

Faurecia, is a specialist in engineering and production of automotive solutions, holds global leadership status in each of its core businesses: Automotive Seating, Emissions Control Technologies, Interior Systems, and Automotive Exteriors. The group delivers support to customers in the automotive industry through an active joint development policy, from defining requirements to pre-commercialising.

With Faurecia“s expertise in complete exhaust systems, the JVA will enable automakers to comply with increasingly stringent international anti-pollution standards with high quality products while keeping costs under control.

“This joint venture couldn“t have been timelier as it will pave the way for the introduction of new emission control technology products to the Group, in line with the current global trend towards Energy Efficient Vehicle (“EEV”) to better serve our vehicle OEM customers and partners,” said YBhg Dato“ Sri Haji Mohd Khamil Jamil.

Today“s event marks another significant milestone towards realising DRB-HICOM“s aspiration of becoming the automotive industry leader, not only Malaysia, but also in the region. Just last month, the Group, through another subsidiary HICOM Polymers Industry Sdn. Bhd. signed a JVA with another global leader HBPO GmbH to design, develop and supply front-end modules for vehicle OEMs.

05 September 2012
Razeek Heads Property & Services
Razeek Heads Property & Services
05 September 2012

Shah Alam, 4 September 2012 – DRB-HICOM Berhad (DRB-HICOM) today announced the appointment of Datuk Mohamed Razeek bin Md Hussain as Chief Operating Officer –Services & Properties, effective 1 September 2012.

A member of the Institute of Engineers Malaysia, Datuk Mohamed Razeek, aged 54, also holds a Bachelor of Science Degree in Civil Engineering from University of The South Bank, UK, as well as a Professional Certification in Management Development from Harvard Business School.

Datuk Mohamed Razeek has more than 30 years“ experience in property development. Apart from holding senior management positions with prominent property development groups, he also brings with him the exposure and experience in other areas such as engineering, project management, sales and marketing as well as general management. Prior to joining DRB-HICOM, Datuk Mohamed Razeek served as the Chief Executive Officer of Malaysian Resources Corporation Berhad (MRCB) a position he held for almost three years during which he steered the company towards operational, financial and branding achievements and accolades.

Datuk Mohamed Razeek started his career in an engineering consulting firm in London in 1979. In 1990, he joined Land & General group of companies and held several senior management positions within the group before being appointed as Executive Director of Land & General Berhad in 1999. Datuk Mohamed Razeek was later appointed as a Project Director of Eastern & Oriental Property Development Berhad in 2003 and joined Damac Properties Co., Dubai as Senior Vice President, Projects in August 2008.

Dato“ Sri Haji Mohd Khamil Jamil, Group Managing Director of DRB-HICOM said, “We are delighted to welcome Datuk Mohamed Razeek to DRB-HICOM. His appointment comes at an opportune time as DRB-HICOM positions itself for continued growth while managing the diversity of its business activities.

“We believe that his strategic business acumen and established operational experience, coupled with his wealth of leadership experience and global perspective will further enhance our standing in the market. We look forward to benefitting from his fresh ideas and insights towards enhancing our operations.”

27 August 2012
Q1 Revenue Up By 119%
Q1 Revenue Up By 119%
27 August 2012


Shah Alam, 27 August 2012 – DRB-HICOM Berhad (DRB-HICOM or the Group) today announced that its revenue for the first quarter ended 30 June 2012 surged by 119% to RM3.46 billion, from RM1.58 billion achieved in the previous corresponding period ended 30 June 2011 following the inclusion of PROTON Holdings Berhad“s (PROTON“s) revenue during the period under review.

Overall, the financial performance of the Group“s operating companies for the quarter under review remains stable. However, the Group“s pre-tax profits dipped to RM97.9 million for the quarter ended 30 June 2012, compared to RM146.3 million, achieved during the same period in the last financial year due to higher finance cost following the acquisition of PROTON as well as the losses incurred by PROTON“s wholly-owned subsidiary Lotus. DRB-HICOM had just completed its 100% acquisition of PROTON on 26 June 2012.

“The impact of PROTON“s acquisition on the Group“s bottom line is transient. With the recent addition of PROTON into the Group, there is tremendous potential to realise a number of synergistic opportunities for us. We are also looking at the implementation of several initiatives to improve cost effectiveness, quality and delivery efficiency to further enhance the Group“s performance – all geared towards ensuring growth and profitability for both PROTON and the Group,” said DRB-HICOM“s Group Managing Director Dato“ Sri Haji Mohd Khamil Jamil.

“These initiatives will leverage the Group“s extensive business and technical know-how as well as its experience working with global partners, who are market leaders. The initiatives transcend the entire automotive value chain, which includes manufacturing systems, localisation, vendor development, distribution, marketing and after sales,” he said.

With all the initiatives in place, the Board expects the Group“s performance for the financial year ending 31 March 2013 to remain satisfactory.

“We also look forward to further growth in the automotive industry on the back of the increase in the total volume of motor vehicle sales to 301,224 units in the first six months of 2012, compared to 297,203 sold in the corresponding period of 2011, which is a positive indication for the industry,” said Dato“ Sri Haji Mohd Khamil.

20 July 2012
Lotus Flagship Store opens in West End
Lotus Flagship Store opens in West End
20 July 2012


Lotus Cars unveils new sports car at opening of flagship store

London, 20 July, 2012 – Lotus cars took the wraps off their new Exige S sports car as they opened a flagship store in the heart of London“s West End.
The new car is the centerpiece of a state-of-the-art store, which is spread over 4,800 sq. feet of floor space in a landmark building that once housed the famous Cafй Royal, just a short distance from Piccadilly Circus.

The shop opening and sports car unveiling mark a new chapter for both Lotus and its parent company PROTON after being taken over by Malaysian conglomerate DRB-HICOM earlier this year. DRB-HICOM with its vast experience and presence in the entire automotive industry value chain, coupled with long-standing collaborations with other global automotive giants reiterated their commitment to drive this iconic British brand to greater success.

Group Managing Director of DRB-HICOM and Executive Chairman of PROTON Dato“ Sri Haji Mohd Khamil Jamil said: “We can derive many synergies between DRB-HICOM, PROTON and Lotus; and we reaffirm our full and long-term commitment to raise Lotus to the next level of success. With a future of increased productivity and cooperation ahead, Lotus is destined to join the ranks of the great luxury performance brands of the world.”

The 170mph high-performance Exige S with a supercharged V6 engine caused a sensation when it was announced at the Frankfurt motor show last year. The first cars will begin rolling off the production line at the company“s HQ at Hethel, Norfolk, later this month.

Lotus Chief Operating Officer Aslam Farikullah said: “The car represents the very best of Lotus. Its aerodynamic appearance is race-track inspired, as is the interior. Every detail from the racing twin-piston front caliper brakes, to the glossy black wheels and lightweight aluminum bonded structure has the Lotus mark of excellence about it.”

The board of DRB-HICOM met with British Trade Secretary Dr Vince Cable on Wednesday, shortly before the store was officially opened by Malaysian High Commissioner to the UK, Dato“ Sri Zakaria Sulong.

The store focuses on providing clothing, memorabilia and luxury goods aimed at three generations of Lotus followers. There are four collections available:

Lotus Originals which targets Lotus owners and its new young audience. It features a relaxed range of clothing aimed at the 25 to 45-year-old age group.

The Lotus Heritage collection is inspired by the glorious racing days of the Sixties and Seventies. It has a retro look and it aimed at the top end of the market.

Whilst the Performance collection reflects the engineering soul of the brand and its high-performance technology; the range includes polo shirts, T-shirts and outdoors wears.

Lotus F1 wear is fast, fun and exciting with a range of clothing and racing accessories.

The store also stocks items like scale model cars for collectors and bespoke bicycles designed by Lotus engineers.

Opening the store, Dato“ Sri Zakaria Sulong highlighted the Lotus brand“s history. “Lotus is such an iconic brand, not just in the UK but internationally as well,” he said. “It represents a heritage that has impacted the world“s automotive industry and a brand that holds so much more potential and relevance in the automotive industry and motorsports today. “I am indeed honored to be part of this special occasion.”

16 July 2012
Che Khalib appointed as COO
Che Khalib appointed as COO
16 July 2012

DRB-HICOM appoints Dato“ Sri Che Khalib as Chief Operating Officer – Finance, Strategy & Planning

Shah Alam, 16 July 2012 – DRB-HICOM Berhad is pleased to announce the appointment of Dato“ Sri Che Khalib bin Mohamad Noh as the Chief Operating Officer-Finance, Strategy & Planning ,effective 16 July 2012. Dato“ Sri Che Khalib aged 47, is a Fellow of the Association of Chartered Certified Accountants (United Kingdom) and a member of the Malaysian Institute of Accountants.

Prior to joining DRB-HICOM, Dato“ Sri Che Khalib served as the President, Chief Executive Officer and Non-Independent Executive Director of Tenaga Nasional from July 2004 to June 2012. Dato“ Sri Che Khalib also served as a member of the Board and Executive Committee of Khazanah Nasional Berhad from 2000 till 2004. Prior to TNB, he was the Managing Director and Chief Executive of KUB Malaysia Berhad from November 2002 to June 2004. He received his early education at Penang Free School before furthering his tertiary studies in England.

Dato“ Sri Che Khalib has received many accolades in recognition of his exemplary leadership. He was honoured with the Lifetime Achievement Award at the Asian Utility Industry Awards 2012, recently held in Singapore. Dato“ Sri Che Khalib was also named as one of the finalist for Platts 2011 Global CEO of the Year Award. In recognition of his significant achievements, he was accorded with the title CEO of the Year at the inaugural Asia Power and Electricity Awards 2010, and Business Leadership Award, Energy Sector, Sector by the Kuala Lumpur Chamber of Commerce and The Leaders Magazine. In 2008 he was named Malaysia“s CEO of the Year. Under his leadership, TNB received the highly prestigious Prime Minister“s Industry Excellence Award 2007.

“We are confident that the appointment of Dato“ Sri Che Khalib as the Chief Operating Officer- Finance, Strategy & Planning will further enhance our Group“s effectiveness in charging ahead and in managing the diversity of our business. Dato“ Sri Che Khalib brings with him a wealth of strategic management, business acumen and leadership experience, especially in the transformation of organizations. These would be of great significance and relevance to DRB-HICOM Group and also in rendering primary support to the Board and Management team”, said Dato“ Sri Haji Mohd Khamil Jamil, Group Managing Director of DRB-HICOM Berhad.

09 July 2012
09 July 2012


Forges Ahead Towards Vision to be Region“s Leader in Automotive Education

KUALA LUMPUR, 9 July 2012 – The International College of Automotive (ICAM), a member of the nation“s leading automotive player DRB-HICOM Berhad (DRB-HICOM), today signed a Licensed Programme Agreement (LPA) with Multimedia University (MMU) to conduct the Masters of Business Administration programme over 18 (eighteen) months on full-time basis at ICAM in Pekan, Pahang.

The signing of the LPA was witnessed by YBhg Prof Dato“ Dr. Rujhan Mustafa, Director General of Department of Higher Education, Ministry of Higher Education. Also present to witness this historic event was YBhg Dato“ Sri Haji Mohd Khamil Jamil, Group Managing Director of DRB-HICOM. Puan Sharifah Halimah Syed Ahmad, Chief Operating Officer of HICOM University College Sdn Bhd, a DRB-HICOM subsidiary, signed on behalf of ICAM. Prof. Dato’ Dr. Muhamad Rasat Muhamad, President of MMU signed on behalf of MMU, witnessed by MMU“s Senior Director of Operations, Mr Senthilathiban Veeriah.

This is the second collaboration initiated by ICAM. In February 2012, ICAM signed a Memorandum of Agreement with Liverpool John Moores University to offer a 2+1 twinning programme for B.Eng. (Hons) in Manufacturing Systems Engineering. These collaborations are steps of the well-planned roadmap towards achieving ICAM“s vision of becoming the Leader in Automotive Education in the region.

Under the LPA with MMU, students can also enrol for the MBA programme on a part-time basis, and are expected to complete the course within 32 months.

The main objective of this collaboration is to expedite the process of upgrading ICAM towards becoming a University College; whilst providing a platform for ICAM to upgrade its academic staff“s qualifications. MMU“s MBA programme is conducted by the Graduate School of Management, which was officially launched on 28 June 2012 by the Minister of Higher Education, YB Dato“ Seri Mohamed Khaled Nordin.

MMU is the top ranked Private Institution of Higher Education (IPTS) in the country and has been licensing its MBA programme to Iran“s Sharif University of Technology, conducted at its International campus on Kish Island, Republic of Iran since 2006; and started its online MBA programme in 2009. It had also extended its licensing of the MBA programme to Kenya Methodist University in 2011.

With today“s signing, ICAM enjoys the distinction of being MMU“s first local partner for its licensed MBA programme. This partnership also serves as a platform for sharing of experiences and for ICAM to leverage on MMU“s proven systems and methods in developing masters programmes.

The minimum requirements for the licensed programme is a Bachelor“s degree with Honours or CGPA of 2.00 and above from MMU or the equivalent from another recognised University; or any other academic qualifications equivalent to a Bachelor“s degree with Honours or CGPA of 2.00 and above, as approved by the Senate of MMU. In addition, the candidate must demonstrate that he or she is qualified to undertake postgraduate work by satisfying a set of requirements set by MMU.
On the same day, ICAM also signed a Memorandum of Understanding (MoU) with Infor Global Solutions (KL) Sdn Bhd for the provision of Infor10 ERP Enterprise LN software, a system deployed for the automotive industry, to be used as a teaching tool for ICAM’s Diploma in Enterprise Resource Planning.

Dato’ Sri Hj Mohd Khamil Jamil, Group Managing Director of DRB-HICOM Berhad said, “DRB-HICOM’s Group will benefit from skills learnt and experiences gained by ICAM graduates, who are destined to be leaders and professionals within the DRB-HICOM Group and the automotive industry. ICAM graduates will already be familiar with the ERP software and work processes when they embark on their careers with the DRB-HICOM Group. This in turn will support the Group’s effort to uplift the whole value chain of the automotive industry.”
David Hope, GM & Regional Managing Director of Infor Asia Pacific South said, “With establishment of ICAM, and supporting DRB-HICOM’s vision of developing skilled resources in automotive industry, Infor has agreed to provide ICAM, access rights to Infor10 ERP Enterprise LN. We believe our strong partnership will provide students graduating from ICAM an in-depth insight into the functionality of DRB’s preferred ERP system and the ability to stay a step ahead in the automotive industry whilst protecting the organization’s IT investment.”

Infor is the world’s third largest provider of enterprise applications and services, helping 70,000 customers in 194 countries improve operations, drive growth and quickly adapt to changes in business demands. Among various industries, Infor focuses on automotive. Designed by automotive experts, and used by 80 out of 100 top automotive companies, Infor10 Automotive delivers an advanced suite of industry-specific, integrated automotive business solutions drawn from experience at every level of the automotive value chain. The DRB-HICOM-Infor partnership started in 1995 with PHN Industry Sdn Bhd being the first subsidiary to implement Infor10 ERP Enterprise LN, and was later extended to various subsidiaries within the Group. The

Group also uses Infor10 Financial Consolidation, and numerous Infor10 suite of products, across all subsidiaries and associated companies.

With the establishment of ICAM, and supporting DRB-HICOM“s vision of developing skilled resources in the automotive industry, Infor has agreed to invest in DRB-HICOM by sponsoring 30 Concurrent User licenses of Infor ERP Enterprise LN.

The ceremony also witnessed an award giving ceremony, where 31 ICAM students who achieved a CGPA of 3.75 and above in the previous semester, were rewarded for their excellent performance.

Dato“ Sri Hj Mohd Khamil bin Jamil said, “They have been rewarded with a foundation to a better future as well as the pride and joy of their parents and this institution. It is also a form of recognition of their hard work, which is hoped, will be a motivation to their fellow peers and symbolizes the spirit of ICAM as it forges ahead towards its vision of becoming the leader in automotive education in the region.”

ICAM“s presence at DRB-HICOM Automotive Complex in Pekan, Pahang will further strengthen Pekan“s position as a significant automotive hub in the country. DRB-HICOM is constructing a full-fledged permanent campus on a 46-acre land in Pekan that will support the Group“s current and future human capital needs. This campus will also house an innovation centre. These facilities are estimated at RM380 million and are expected to be completed in phases. The first phase is targeted for completion in middle of 2013. When fully completed, ICAM campus will be able to accommodate 5,000 students.

29 May 2012
FY2012 pre-tax profit surges to RM1.52b
FY2012 pre-tax profit surges to RM1.52b
29 May 2012


Shah Alam, Tuesday, 29 May 2012 – DRB-HICOM Berhad (DRB-HICOM) today announced its 12 months performance for the financial year ended 31 March 2012, registering Group revenue of RM6.88 billion as compared to RM6.80 billion in the previous financial year. In the year under review, the Group achieved total pre-tax profits of RM1.52 billion as compared to RM701.52 million in the previous financial year.

The increase in pre-tax profits is attributed to the recognition of negative goodwill of RM971.52 million arising from the acquisition of Proton Holdings Berhad. Meanwhile, operating profits from subsidiary companies before finance cost has improved by 11.6% to RM534.83 million from RM479.44 million in the preceding financial year.

Earnings per share rose to 66 sen as compared to 24 sen in the previous financial year. Total gross dividend for FY2012 is 6 sen per share, similar to that paid in 2011. The Company had paid an interim dividend of 2 sen gross per share, amounting to RM28,998,556 on 28 March 2012.

DRB-HICOM“s Group Managing Director, Dato“ Sri Haji Mohd Khamil Jamil said, “We believe that our continuous efforts in leveraging the Group“s strength and emphasis on effective and efficient quality, cost and delivery management, coupled with the acquisitions of new businesses have attributed to the growth momentum and improved revenue and profits of the Group.”

“Financial year 2012 marked a year of significant milestones for DRB-HICOM, with the acquisitions of POS Malaysia Berhad and Proton Holdings Berhad, as well as the commencement of the local assembling of Volkswagen Passat in the DRB-HICOM Automotive Plant in Pekan, which have further propelled the growth of this year“s performance,” he added.

Dato“ Sri Haji Mohd Khamil said that there was also a 12% decrease in the operational profits (excluding negative goodwill), which was due to the one-off financing costs on borrowings to finance the acquisition of POS Malaysia Berhad and Proton Holdings Berhad, and the recent automotive component supply constraints arising from the flood situation in Thailand which had affected the performance of an associated company.

Dato“ Sri Haji Mohd Khamil believes that with the expected favourable domestic economic growth for 2012 of 4% to 5%, and the Group“s continuous pursuit of various cost management and strategic initiatives, the prospects of the Group“s various businesses for the financial year ending 31 March 2013 are expected to be positive. Further, with the full year results of POS Malaysia Berhad and Proton Holdings Berhad, the Group“s performance and position will further improve.

18 April 2012
DEFTECH inks deal with Tata Motors
DEFTECH inks deal with Tata Motors
18 April 2012


KUALA LUMPUR, 18 April 2012 – DRB-HICOM Defence Technologies Sdn Bhd (DEFTECH), a wholly-owned subsidiary of DRB-HICOM Berhad today signed a Cooperation Agreement with TATA Motors Limited, India (TATA) to develop, promote and market TATA military vehicles.
The Agreement was signed during the Defence Services Asia 2012 Exhibition (DSA) at Putra World Trade Centre, Kuala Lumpur by Chief Executive Officer of DEFTECH, Encik Abdul Harith Abdullah and Mr. R.T. Wasan, Head of TATA International Business, Commercial Vehicle Business Unit. The signing of the Agreement was witnessed by Malaysia“s Minister of Defence, YB Dato“ Seri Dr. Ahmad Zahid bin Hamidi, Secretary General of Ministry of Defence, YBhg. Dato“ Sri Dr. Hj. Ismail Bin Hj. Ahmad, DEFTECH“s Director, YBhg. General (R) Tan Sri Dato“ Seri Mohd Zahidi Bin Hj. Zainuddin and Chief Executive Officer of TATA, Mr. Ajit Venkataraman.
The Cooperation Agreement would enable both DEFTECH and TATA to promote the high mobility 4×4 trucks with payloads ranging from 2.5 tonne to 5.0 tonne, to the Government of Malaysia. In the initial stage, DEFTECH will be working on two of TATA“s models, LPTA 715 and LPTA 1623, which are proven models with the Indian Army. The vehicles are suitable for various configurations including troop carrier, command post, ambulance, recce, armoured carrier communication shelter and others.
This cooperation is testimony to DEFTECH“s commitment to contribute towards Malaysia“s self-reliant defence aspirations by offering a suite of customised solutions and products that leverages on proven technologies as well as DEFTECH“s own engineering expertise and technological innovation.
In addition, this Agreement will also pave the way for yet another strategic global collaboration with a world-class manufacturer. This initiative is in line with DEFTECH“s move to continue to strengthen its position as the preferred military vehicle manufacturer, integrator and service provider; as it constantly seeks opportunities to expand its customer base through penetration of potential international markets of its military and specialised vehicles.

23 March 2012
Suzuki Kizashi launched
Suzuki Kizashi launched
23 March 2012



KUALA LUMPUR, Friday, 23 March 2012 – Suzuki Malaysia Automobile Sdn Bhd (SMA), today introduced the fully imported Suzuki Kizashi 2.4L SDLX/SPORT from Japan, to the Malaysian market. The milestone signified Suzuki“s entrance into the D-segment category of the automotive market or the sporty and elegance Sedan segment, expanding it“s line-up beyond the small cars segment.

The Suzuki Kizashi 2.4L was officially launched by YBhg. Dato“ Sri Haji Mohd Khamil Jamil, Chairman of Suzuki Malaysia Automobile Sdn. Bhd. and Group Managing Director of DRB-HICOM Berhad in a press launch today. Also present at the ceremony was Mr. Shinya Yokokawa, Deputy Managing Director of Suzuki Malaysia Automobile.

In his speech, Y Bhg. Dato“ Sri Haji Mohd Khamil Jamil said, “The Suzuki Kizashi 2.4L will be the new Suzuki“s flagship vehicle in the D-Segment category. The new sporty and elegance sedan will further expand and strengthen the company“s current product line of compact cars and SUVs. ‘Kizashi“ comes from a Japanese word which means “a sign of great things to come”. Undoubtedly a great new stimulant to Malaysia“s D-Segment, it mirrors Suzuki“s forward-looking approach to break into the Sedan market.”

Having made a name for itself as a specialist in compact cars and SUVs, Suzuki expansion into the Sedan market is an indication of Suzuki“s commitment to accommodate great demands in bigger cars and the diverse lifestyles of customers who want to stay with the Suzuki brand when buying larger cars. Kizashi reflects a concept of creating an emotionally appealing sedan for active people with a combination of sportiness and elegance in its design, a further evolution of the European-tuned handling delivered by the Swift and SX4, with a smoothness and quietness befitting a D-Segment vehicle.

Available in both Standard (SDLX) and Sport; the Kizashi encompasses Japanese craftsmanship quality with European styling, sporty and elegance Interiors, superior 2.4-litre DOHC inline-four petrol engine performance, fuel efficiency, outstanding range of safety technologies, which will all offers exceptional driving convenience and experience that reflects Suzuki“s exuberant brand spirit that delivers a high level of excitement to everyone who drives it.

Equipped with active safety standard equipment, including anti-lock braking system, electronic braking force distribution, six airbags and an ESP ®* (Electronic Stability Programme) with traction control that promotes stability during cornering maneuvers, acceleration, emergency maneuvers and on slippery roads, the Kizashi“s is crafted with great safety in mind.

Since the launch in year 2010 in Japan, The Kizashi 2.4L had won several international accolades including the AutoPacific, Inc. Best U.S 2011 model for two consecutive years for the Vehicle Satisfaction Awards (VSA) and Best Buy Awards by “Consumer Digest” 2011, a prominent magazine on consumer products review. The Kizashi 2.4L was also accolade top rating out of the 13 other models among the mid-size segment in the U.S JD Power and Associates“2011.

14 March 2012
Shareholders say aye to Proton acquisition
Shareholders say aye to Proton acquisition
14 March 2012

DRB-HICOM“s shareholders say aye to the Group“s acquisition of 42.7% of Khazanah“s stake in Proton.

Shah Alam, Thursday, March 14, 2012 – Shareholders today approved DRB-HICOM“s acquisition of 42.74% of Khazanah Nasional Berhad“s (KNB) stake of Proton Holdings Berhad, (PHB) which would trigger a mandatory general offer for all the remaining Proton shares not owned by the Group.

The Group expects the acquisition to be completed within seven days from today, after which, PHB would become a 50.01% held subsidiary of the Group.

Group Managing Director Dato“ Sri Haji Mohd Khamil Jamil said that the Group‘s decision to acquire PHB is very much business driven. “It is a carefully calibrated move, made after taking into account fundamental issues, challenges and opportunities. This includes resources needed for such a venture and its impact on shareholders“ value.”

The strategic plan to revive and enhance Proton“s sustainability is also a carefully crafted series of business plans that transcends the entire automotive value chain based on the Group“s extensive experience in the automotive industry, continued Dato“ Sri Haji Mohd Khamil Jamil , who had earlier denied the reports on rebadging for Proton.

“There is already synergy between DRB-HICOM and PHB as some of our subsidiaries like Oriental Summit Industries Sdn Bhd, Hicom Diecasting Sdn Bhd, PHN Industry Sdn Bhd and HICOM Teck See Manufacturing Sdn Bhd are among PHB“s tier 1 vendors for automotive components. The Group also undertakes sales and after sales services for Proton vehicles through our subsidiary Edaran Otomobil Nasional (EON) which, incidentally is also the master dealer for Proton Edar Sdn Bhd.”

The Group“s acquisition of PHB, would now take this synergy to greater heights, and this would further enhance the auto eco-system of both entities. Proton would benefit from DRB-HICOM“s vast experience in the industry as well as its extensive network of partnerships, collaborations and joint ventures while DRB-HICOM would benefit from Proton“s wide array facilities as well as its manufacturing and R&D capabilities.

He added that this synergy would transcend into new collaborations and opportunities including the development of new models and designs, expansion of localisation, as well as other initiatives that would not only benefit both companies but also the local automotive industry.

“We will always stay firm on our intention and interest to encourage and push for Malaysia as the preferred automotive hub in the region. We hope that this synergy between DRB-HICOM and PHB would introduce enhancements and positive changes to the local automotive landscape.”
The Group entered into a conditional share sales and purchase agreement on January 16, 2012 with KNB to acquire 234, 734,693 ordinary shares of RM1 each, representing approximately 42.74% for a total cash consideration of RM1.29 billion or equivalent to RM5.50 each for each PHB share. Subsequently, on January 17, 2012, the Group acquired an additional 39.93 million shares, representing 7.27% of the issued and paid up share capital of PHB, from the open market for a cash consideration of RM217million – at prices ranging from RM5.40 to RM5.47 per share.

The proposed acquisition and the proposed MGO will be funded by a combination of internally generated funds and borrowings at the ratio of 15 : 85.

“Though this will push our gearing from 0.26 times to 0.59 times, the Group“s gearing level is still way below the financial covenant of 1.5 times imposed on the Islamic Medium Term Notes programme. We will continue in our prudent approach in managing the balance sheet as evident in the last 5 years, where we successfully reduced our gearing from 0.87 times in FY2006 to 0.26 times in FY 2011,” explained Dato“ Sri Haji Mohd Khamil Jamil.

The Group is looking at long term, sustainable growth for its investments in PHB to ensure continuous enhancement of shareholders value, which has always been DRB-HICOM“s primary aim, he added

11 March 2012
Locally Assembled Passat Unveiled
Locally Assembled Passat Unveiled
11 March 2012



PEKAN, PAHANG, Sunday, 11 March 2012 – DRB-HICOM Berhad (DRB-HICOM) today together with Volkswagen officially unveiled the first locally-assembled Volkswagen Passat, a significant milestone that further augments DRB-HICOM“s commitment to its completely knocked-down (CKD) operations for the production of Volkswagen vehicles for the local market and subsequently, the ASEAN market.

The unveiling was officiated by YAB Dato“ Sri Mohd Najib Tun Haji Abdul Razak, Prime Minister of Malaysia at the DRB-HICOM Automotive Complex in Pekan, Pahang. Also present at the ceremony were YAB Dato“ Sri Diraja Haji Adnan bin Yaakob, Menteri Besar of Pahang, YBhg Dato“ Syed Mohamad Syed Murtaza, Chairman of DRB-HICOM, YBhg Dato“ Sri Haji Mohd Khamil Jamil, Group Managing Director of DRB-HICOM, Dr. Christof Spathelf, Senior Vice President Group Manufacturing Overseas of Volkswagen AG, as well as Mr. Weiming Soh, Member of the Board of Management of Volkswagen in China and Head of Commercial Operations China/Asean.

In his speech, YAB Dato“ Sri Mohd Najib said that the RM1 billion collaboration between DRB-HICOM and Volkswagen AG is a perfect example of how a private sector driven initiative, with the strong support of the Government, can contribute towards realizing Malaysia“s aspirations.

“The entry of renowned global auto players such as Volkswagen is an indication of the growing confidence in our economy. The investor-friendly policies and related initiatives that we have implemented over the years have put us on the right track and testimony to this is the RM39.9 billion Foreign Direct Investment (FDI) Malaysia managed to attract last year, the highest ever FDI for the country, thus far,” said YAB Dato“ Sri Mohd Najib.

“I am also happy to note that DRB-HICOM and Volkswagen are looking at localising 40% of the automotive components in a move to support the Government“s localisation programme under the National Automotive Policy (NAP),” said YAB Dato“ Sri Mohd Najib.

Liberalisation of the auto industry would open up a vast array of opportunities. One of initiatives underlined includes the localisation programme aimed at producing highly-skilled local vendors to serve not just the local market but also the regional and global markets.

In his speech, YBhg Dato“ Sri Haji Mohd Khamil Jamil said that with the entry of Volkswagen into Pekan and the Malaysian automotive scene, this industry is set to grow as both parties will intensify their localization programmes. These will eventually springboard our vendor development programme which will enhance the capabilities and production of local vendors. Hence, our local component manufacturing sector will experience significant development in the areas of quality, process as well as delivery and favourable costing.

The locally-assembled Volkswagen Passat 1.8TSI unveiled today is a sophisticated people“s premium sedan that is now made more affordable for the rakyat (people). To date, 300 Volkswagen Passat cars have been assembled at the Complex following stringent quality standards regulated by Volkswagen.

In December 2010, both DRB-HICOM and Volkswagen AG signed a collaboration agreement to form the partnership together to locally-assemble Volkswagen vehicles in DRB-HICOM“s automotive manufacturing facilities in Pekan, Pahang.

The Passat 1.8TSI is the first of a few Volkswagen vehicles to be assembled at the DRB-HICOM Automotive Complex in Pekan. More Volkswagen vehicles are expected to be locally-assembled.

“With our accumulated experience and competent workforce, our Automotive Complex is poised to transform itself into a regional CKD hub, in view of its growing recognition for its international-standard manufacturing facilities, strong logistical support and good infrastructural facilities. Today, our presence in the automotive arena transcends the entire automotive value chain, from component manufacturing to assembly; importation to inspection; and after-sales service to inspection,” said Dato“ Sri Haji Mohd Khamil.

The establishment of the International College of Automotive (ICAM) is another milestone that completes DRB-HICOM“s involvement in the industry value chain, and is part of effort to uplift our national industry through education. This is in line with the ambitions under the Government“s Economic Transformation Programme (ETP) which aims to increase the number of highly-skilled and competent workforce to fulfill the demands of the industry, by developing a new generation of automotive professionals and talents to drive the industry into the future. ICAM prides itself as the automotive college that is established “by the industry, for the industry”. ICAM graduates will be equipped with the necessary skills and knowledge to meet the needs of the automotive industry.

“A full-fledged permanent campus, estimated at RM440 million, is currently being constructed on a 43-acre land in Pekan. The first phase is targeted for completion in June 2013. The project is expected to generate around 500 employment opportunities and other entrepreneurial opportunities for the local populace and accommodate 7,000 students by 2020, “ concluded Dato“ Sri Haji Mohd Khamil.

On another note, Dato“ Sri Mohd Najib said that Pekan has also been designated as one of the country“s five automotive hubs alongside Shah Alam, Gurun, Tanjung Malim and Bertam. This 96-hectare DRB-HICOM Automotive Complex in Pekan is also the main component in Pahang“s Automotive Industrial Park that will be expanded to 400 hectares as part of the effort to make Pekan the national automotive hub under the ECER initiative.

With the growing recognition for its international-standard manufacturing facilities, strong logistical support and good infrastructural facilities, the Group“s Automotive Complex is poised to compete to become a regional CKD hub. The complex has so far produced close to half a million vehicles from various makes.

Dr. Christof Spathelf, Senior Vice President, Group Manufacturing Overseas of Volkswagen AG, said the Asean region and especially Malaysia, was an integral and important part of Volkswagen“s global strategy.

“Malaysia is known for its strong and stable growth path, dynamic industry and strong progress in key industries as in the automotive industry. This is an excellent business environment. Volkswagen as a global player wants to build on these strengths and become a reliable business partner.

“Today, we can altogether be proud and look at what we – Volkswagen and DRB-HICOM – achieved. This is a very important milestone for Volkswagen in Malaysia, but it is just one milestone. There is more to come. We will increase the number of models being produced. We will expand the plant facilities. And we will take responsibility for the community and the country as well,” he added.

He said the result of this strategy is that the value chain becomes more and more local without compromising Volkswagen“s strength of German engineering and design.

24 February 2012
Group Holds Strong Despite Challenges
Group Holds Strong Despite Challenges
24 February 2012

DRB-HICOM Berhad records a marginally lower revenue for the first nine months of FY2012 to RM4.75billion due to challenges in the automotive sector

Shah Alam, 24 February 2012 – DRB-HICOM Berhad today announced a Group revenue of RM4.75 billion for the first nine months ended 31 December 2011 as compared to RM4.81 billion in the corresponding period ended 31st December 2010. The Group“s operating profit was RM425.5 million as compared to RM495.7 million (excluding exceptional item of RM71.2 million for negative goodwill) achieved in the previous corresponding period ended 31st December 2010.

The lower revenue and operating profits were mainly due to reduced earnings from its automotive business, which were affected by the automotive component supply constraints arising from the recent flood situation in Thailand as well as competitive market environment and the increased costs of doing business.

“Nevertheless, DRB-HICOM with its diverse business background is ready to withstand the challenges thrown its way. Its services and property businesses will continue to provide the mitigating factors.

“Services companies like Bank Muamalat Malaysia Berhad saw its revenue grow by 5.5% in the first nine months, while the newly acquired Pos Malaysia, currently in the midst of its corporate transformation programme, saw its net profit go up by 67% to RM112 million for the first 12 months ended 31st December 2011,” said Group Managing Director Dato“ Sri Haji Mohd Khamil Jamil.

In the first 6 months after the Group“s acquisition of 32.2% stake, Pos Malaysia“s net profit grew by 39.5% to RM52.2 million.

The Group“s property business, on the other hand, improved by a hefty 87.4% in the nine months under review as compared to the same period in 2010. On the other hand,

Dato“ Sri Haji Mohd Khamil Jamil further added that the strategic re-alignment and strengthening of the Group“s services and property businesses over the last three years have provided the DRB-HICOM sufficient buffer. The move included acquisition of companies that provided value and synergistic opportunities for the Group, like Pos Malaysia, he said.

The Board of Directors has declared an interim dividend of 2 sen per share less taxation which will be paid on 30th March 2012.

09 February 2012
ICAM collaborates with John Moores University
ICAM collaborates with John Moores University
09 February 2012



Kuala Lumpur, 9 February, – International College of Automotive (ICAM), a member of DRB HICOM Berhad today signed an International Collaborative Agreement with Liverpool John Moores University (LJMU) to conduct 2+1 twinning programme for B.Eng. (Hons) Manufacturing Systems Engineering on franchise basis. Under this programme, students will complete their initial two (2) years at ICAM before progressing to LJMU in United Kingdom for their final year.

The Group Managing Director of DRB-HICOM Berhad, Dato“ Sri Hj Mohd Khamil bin Jamil said, “This collaboration is part of a well-planned roadmap that we have developed to expedite the process of upgrading ICAM to university status. By providing quality education that combines knowledge and industry experience, ICAM will move closer to its vision of becoming the leader in automotive education. This in turn will support the Group“s efforts to uplift the whole value chain of the automotive industry. And as the nation“s leading corporation in the automotive sector, this collaboration further underscores our commitment to play an active role in realising the nation“s aspiration of creating a knowledgeable and skilful workforce.”

This partnership is a platform for sharing of experience and for ICAM to leverage on LJMU“s proven systems and methods in developing home grown degree programmes. It will prepare the academic staff with the essentials in order for ICAM to be upgraded to a university college and subsequently to university status. This partnership will enable ICAM to expedite its upgrading exercise to university college status earlier than 5 years.

The minimum entry requirements for the 2+1 twinning degree programme are:

a) Malaysian Qualification Agency (MQA) accredited Diploma including ICAM“s Diploma could be considered for entry to Level 5 (Year 2) of LJMU“s twinning programme; or

b) ‘A“ Level or Sijil Tinggi Pelajaran Malaysia (STPM) or Canadian Pre-University (CPU) examination.

In addition all applying students must have an IELTS score of 6 or equivalent.

ICAM which was established in April 2010 currently offers six (6) Diploma programmes, with another two programmes targeted to commence in March 2012. The establishment of ICAM is in line with the aspirations under the Government“s Economic Transformation Programme (ETP) which among others, aims to increase the number of highly-skilled workers to fulfill the demand of the industry and a high-income nation. According to Dato“ Sri Mohd Khamil, “DRB HICOM is involved in the entire value chain of the automotive industry. It falls upon the shoulders of ICAM to shape and produce future leaders and capable executives in the automotive industry. ICAM prides itself as the automotive college that is established for the industry from the industry. It is designed to provide engineering and technology courses as well business and management courses related to the automotive industry. ICAM“s graduates will be equipped with the necessary skills and knowledge to meet the needs of the automotive industry and elevate Malaysia“s future position in the global automotive market.

ICAM“s presence at DRB-HICOM Automotive Complex in Pekan, Pahang will further strengthen Pekan“s position as an important automotive hub in the country. DRB-HICOM is already constructing a full-fledged permanent campus on a 43-acre land in Pekan that will also support its current and future Group“s training needs. This campus will also house an innovation centre. The facilities are estimated at RM380.0 million and are expected to be completed in phases. The first phase is targeted for completion in June 2013. When fully completed, ICAM campus will be able to accommodate 5,000 students.

Liverpool John Moores University (LJMU) is an established university for teaching and application oriented research. It was ranked Top 20 University for General Engineering and Top 25 University for Mechanical Engineering in United Kingdom by Times Good University Guide 2010. In the 2008 Research Assessment Exercise, 90% of its research was rated international to world leading excellence in General Engineering and Electrical Electronic Engineering.

01 February 2012
Spyder's here to exhilarate
Spyder's here to exhilarate
01 February 2012



GLENMARIE, SELANGOR, 1st February 2012 – The Minister of Defence, Y.B Dato; Seri Dr. Ahmad Zahid bin Hamidi, today launched the much awaited BRP CAN-AM SPYDER Roadsters, world“s first three-wheeled roadster, locally assembled and distributed by DRB-HICOM Berhad.

A convoy of more than 300 multi-brand superbikes led by the Minister of Defence himself went riding around Klang Valley before ending the journey at Glenmarie Golf & Country Club for the official launching ceremony. The launch was supported by Superbikes Association Malaysia (S.A.M).

“We secured not only the rights to distribute the BRP CAN-AM SPYDER Roadsters but also the rights to assemble them locally to ensure that these superbikes are more affordable for Malaysians. The BRP CAN-AM SPYDER Roadsters are assembled in our manufacturing and assembly facility, according to industry standards and our corporate consciousness for quality. These roadsters will be exclusively distributed by our subsidiary USF-HICOM Berhad,” said Group Chairman Y. Bhg Dato“ Syed Mohamad Syed Murtaza.

CAN-AM SPYDER roadster has been a global phenomenon, distributed through authorized BRP dealers in over 58 countries for the past five years. Much effort, dedication and money have been invested in the improvement of CAN-AM SPYDER Roadster and BRP turns its attention to refinement, pulse-quickening style and unmatched luxury for its CAN-AM SPYDER model line.

Today DRB-HICOM and USF-HICOM unveiled and introduced the first locally-assembled BRP CAN-AM Roadster Sports and Touring bikes. The uniqueness of the bike is the distinctive Y-architecture – two wheels in front, one in back, which creates challenges that push the limits of vehicle technology. There are 2 models available for the CAN-AM SPYDER Roadster, which is Roadster Sports (RS), for customers who enjoys a more active riding position and a sporty vehicle design and Roadster Touring (RT), for those long distance riders.

The CAN-AM SPYDER Roadster offers speed and adventure. It comes with 998cc Roadster Sports and Roadster Touring Rotax engine, installed with 5 speed gearbox, automotive-derived BOSCH-engineered vehicle stability system (VSS) that integrates anti-lock brakes (ABS), traction control (TCS) and stability control, equipped with Dynamic Power Steering (DPS) and Digital Encoded Security System (DESS).

Dato“ Syed Mohamad further added, “USF-HICOM will be launching its SPYDER Bikers Club soon and planning to organize a quarterly event. Buyers of CAN-AM SPYDER get free lifetime membership,”.

USF-HICOM has secured more than 50 bookings of CAN-AM SPYDER Roadster mix model variance, through the pre-launch sales campaign. USF-HICOM is targeting to produce and distribute/sell 15 – 18 units a month of CAN-AM SPYDER mix models variance throughout 2012. The price ranges from RM 103,800.00 to RM 129,190.00 for RS and RM 134,800.00 to RM 159,290.00 for RT, depending on the model variance.

The CAN-AM SPYDER Roadster comes with 2 years warranty (unlimited mileage) and in various colours depending on the model variance.

01 February 2012
Celebrating Diversity
Celebrating Diversity
01 February 2012


Group hosts open house to celebrate diversity

DRB-HICOM Berhad“s Chinese New Year Open house held on Feb 1 at the Holiday Inn Kuala Lumpur in Glenmarie, saw almost a thousand guests, including MCA President Datuk Seri Chua Soi Lek, Minister of Housing and Local Government Minister Datuk Seri Chor Chee Hung, Deputy Minister of Agriculture and Agro based Industry Dato“ Chua Tee Yong and other MCA leaders. The Group also feted the children from the Shelter Home and senior citizens from Charis Home.

Chairman Dato’ Syed Mohammad Syed Murtaza and Group Managing Director Dato’ Sri Haji Mohd Khamil Jamil played host and also present were the Group’s Mangement Team.

This Chinese New Year Open House was held as apart of the Group“s effort to embrace multiculturalism and to show its sincere appreciation to government agencies, business partners, stake holders, customers, dealers and vendors for their support and assistance which enabled the company to achieve its outstanding results.

In his speech Group Managing Director Dato“ Sri Haji Mohd Khamil Jamil expressed his hope that all partnerships built so far would continue to strengthen and rise above any challenges to flourish.

“My team and I look forward to working closely with all of you in this year so as to scale new heights, create and add new value to each other“s businesses. This way we will be able to generate greater economic activities for the nation,” said Dato“ Sri Haji Mohd Khamil Jamil.

16 January 2012
DRB to drive Proton
DRB to drive Proton
16 January 2012


SHAH ALAM, 16 Jan 2012 – DRB-HICOM Berhad announced it has signed the Shareholders Sales and Purchase Agreement (SSPA) with Khazanah Nasional Berhad to acquire the latter“s strategic stake of 42.74% in Proton Holdings Berhad in its quest to further expand and add value to the Group“s automotive portfolio and businesses.

In making the announcement, DRB-HICOM“s Group Managing Director Dato“ Sri Haji Mohd Khamil Jamil expressed his appreciation to Khazanah Nasional Berhad for the belief that DRB-HICOM is the best fit entity with an acceptable and workable strategic business plan capable of providing the critical impetus to drive Proton forward to greater heights. “I would like to thank the leadership team of Khazanah Nasional Berhad for their confidence in DRB-HICOM to take the primary role to steer Proton into the future”, said Mohd Khamil.

Proton has long been in the radar of DRB-HICOM as has been professed by Mohd Khamil earlier. He further reiterated that since 2009, DRB-HICOM has put in many thoughts to study and analyse the position of Proton which subsequently resulted in the generation of a practical and executable Business Plan transcending the entire automotive value chain. This Plan is not a single and one-off effort but a collective endeavour of DRB-HICOM“s functional and technical know-how coupled with its multi-brand experiences working with global partners to provide inputs on how to enhance Proton“s systems and procedures.

Armed with its wealth of knowledge and extensive network of partnerships, collaborations and joint ventures over the years, DRB-HICOM is in a position to appreciate the automotive industry in the local and global context, hence enabling it to understand the impetus required to steer Proton further forward. This in particular, will strengthen Proton“s operations in terms of localisation and vendor development, manufacturing system and distribution network and more importantly, its presence in the regional market as an ASEAN car.

Asked about DRB-HICOM“s immediate plans for Proton, Mohd Khamil added, “DRB-HICOM and Proton have over the years accumulated a reservoir of potential waiting to be realised at the right time. The synergy between these 2 entities not only transcends but also enhances the entire automotive eco system. The utmost priority for DRB-HICOM at this juncture is to put into action and realise the workable business model for Proton”. In essence, this means that product renewal and enhancement is one of the major agenda lined up by DRB-HICOM. As the automotive technology evolves, green technology has gained momentum as well as the approval of many environmental conscious consumers. As such, hybrid and electric vehicles are one of the main focuses. Proton will continue to strive to cater to its consumers“ needs, taste, lifestyle requirements as well as in line with global automotive market trends.

“Over the years, Proton has effectively built up its assets and played a major role in fuelling Malaysia“s economy. In doing so, it has a well-trained pool of human resource. Enhancing the development of Proton“s current human capital and talents is crucial and it is a significant part of the strategies of DRB-HICOM. Furthermore, with the potential to improve capacity, we look to the competent workforce of Proton to put their best foot forward so that synergies and improvements can be derived”, explained Mohd Khamil. In addition, DRB-HICOM“s commitment to continuous learning will provide opportunities for the staff of Proton to enhance their competencies.

As both DRB-HICOM and Proton work hand-in-hand to promote performance and diversify its products offerings, it will be crucial for Proton to broaden its talents“ capabilities while at the same time, raise the quality of its workforce. This is where the presence of International College of Automotive (ICAM) established by DRB-HICOM can provide one of the best synergies and perhaps the golden key to Proton“s core competence to unlock the future for Proton. ICAM being the only local centre of education that offers automotive courses covering both upstream as well as downstream of the total automotive value chain also prides itself with a unique holistic teaching approach enlisting teaching personnel who are also industry professionals. The combination of classroom learning and acquisition of skills through actual on-the-field work setting will accelerate the students“ learning curve. In short, ICAM is established by the industry for the industry. The College has attracted many local and international parties be it learning institutes for twinning programmes as well as interested students to pursue automotive education in Malaysia. With the support of DRB-HICOM“s automotive partners, ICAM will generate well-trained and competent knowledge-based professionals as talent supply to Proton. In the longer term, graduates of ICAM are groomed to be future leaders of automotive industry that will eventually assume leadership roles in both DRB-HICOM and Proton.

Mohd Khamil further stressed that the National Automotive Policy introduced by the Government is an excellent move as it has grown Proton tremendously over the years and undoubtedly will continue to provide Proton with the edge to springboard its operations to greater heights and expand its presence to a wider reach. As the Government continues its effort to enlarge the nation“s automotive industry, the NAP should also be able reach out and encourage global players to intensify their presence and investments in Malaysia. DRB-HICOM will maintain its intention and interest to safeguard the national car company while at the same time encourage, facilitate, grow and enhance Malaysia“s national automotive industry, hence making Malaysia a preferred automotive hub capable of rivalling its neighbours.

This will eventually witness the mushrooming of local automotive manufacturing entrepreneurs venture into this area in the near future. Integral to this plan is the development of local vendors as DRB-HICOM accelerates the localisation programmes. Supporting initiatives such as training and adding value to vendors“ work processes to improve quality, cost and delivery will develop our local vendors to be more innovative, efficient and reliable. Together with the new generation of automotive professionals generated by ICAM, these competent and knowledge-based workers will support our OEMs and local vendors in their operations to meet international standards and hence, compete at global level. DRB-HICOM“s success and experience in developing local vendors though its various partnerships with international marques speaks volume for itself. As Proton intensifies its production and improves it capacity, it will attain economies of scale and ultimately translate into better performance for its vendors in terms of production and financials. This reflects DRB-HICOM“s Corporate Responsibility commitment which one of the pillars involves growing its partners and stakeholders in the marketplace.

Having smart partnerships across the globe in terms of sharing of expertise, technology and strategies, DRB-HICOM will leverage on these competencies to contribute to the innovation as well as competitiveness of Proton. Driven by the strong entrepreneurial – practical management approach led by Mohd Khamil and his Management team, and coupled with the dedicated support from DRB-HICOM“s international OEM partners, the ability of DRB-HICOM to steer Proton and bring in positive winds of change cannot be underestimated.

The 2-prong strategy approach of raising the visibility and competitiveness of Proton, the national car company as well as the national automotive industry is the primary agenda inscribed in the books of DRB-HICOM. In doing so, Mohd Khamil who has led DRB-HICOM to acquire and secure significant projects since helming the Company in 2006 will provide the strong leadership needed to steer Proton to greener pastures whilst realising its competitive edge. Proton, on the other hand will gain the direct support of the DRB-HICOM Group. The presence of Edaran Otomobil Nasional (EON) will provide the much needed thrust to generate fresh and novel marketing strategies and contents to drive Proton forward both in the local as well as global arena. To reinforce Proton“s marketing strength, it will leverage on the network of dealerships available to extend Proton“s reach to all consumers. Ultimately, Proton“s marketing strategy will be of one that is very dealer-centric. DRB-HICOM“s presence in the Proton“s value chain will undeniably fortify Proton“s DNA.

The inking of the deal definitely signifies more exciting times ahead for both DRB-HICOM and Proton. With the many mutual benefits and synergies lined up, Proton is bound to reap these complementing dynamics which will ultimately benefit the consumers and stakeholders in terms of quality, cost and delivery along with customer satisfaction which has long been the operating tenet of DRB-HICOM under the direction of Mohd Khamil.
In executing the business plan in pursuit of Proton“s transformation, DRB-HICOM will ensure the welfare of its employees, vendors and dealers are looked after and enhanced. “Without productive and dedicated employees, no organisation will be able to survive, what more to excel” Mohd Khamil said. Mohd Khamil further stressed “I believe that the presence of entrepreneurial leadership, dedicated and productive employees, efficient and reliable vendors and dealers, and the caring and supportive Government through its various market focus and consumer-centric policies, Proton will eventually emerge as a force to be reckoned within the global automotive map, Insya“Allah”.