Aside from the synergies or operational strategies that could arise from UMW’s takeover of Sime Darby, all eyes are also on Perodua’s corporate structure moving forward, amid the fragmented shareholding currently as well as previous speculations on the prospects of listing the carmaker to unlock its value.

TOKYO (Oct 27): It is “business as usual” at Perusahaan Otomobil Kedua Sdn Bhd (Perodua), as there has yet to be any announcement on the national carmaker, following the proposed takeover of its largest shareholder UMW Holdings Bhd by Sime Darby Bhd.

Commenting on the matter at a press briefing in conjunction with the Tokyo Mobility Show 2023, Perodua executive director of manufacturing and vice-president of Perodua Auto Corp Sdn Bhd Datuk Ahmad Suhaimi Hashim said there is “nothing significant’ for now, as the corporate exercise had not underlined anything with regard to plans for Perodua moving forward.

“For us, it is business as usual. Kita tidak ada rasa apa-apa. Because it’s between UMW and Sime Darby, and there’s no clear statement or anything about Perodua. We’ll wait for that,” Ahmad Suhaimi said, when asked about morale within the company when the news broke.

Sime Darby, in announcing the RM5.84 billion deal in August, wants to “unlock the potential for revenue growth and operational efficiencies”, according to group chief executive officer Datuk Jeffri Salim Davidson.

Sime Darby has exposure to the automotive sector through its regional distribution business of luxury car brands including BMW, Ford, Land Rover and Porsche, with strong presence in China.

In Malaysia, Sime Darby has no footprint in the mass market, where Perodua dominates with 40% of new car sales attributed to the Daihatsu-linked compact car manufacturer.

However, Sime Darby is a major electric vehicle (EV) retailer, being the exclusive distributor of Chinese maker BYD in Malaysia.

Perodua, meanwhile, has yet to venture into EVs, and has only launched the Ativa hybrid on a subscription basis.

Electric push?

Malaysia has identified the EV segment as an industry focus in the New Industrial Master Plan 2030. Local carmaker Proton has accelerated plans to come out with its own EV by end-2025, from 2027 previously.

This is concurrent with plans to open up the industry, namely to lift the current incentives for EV purchases, and the import restrictions on EV models priced below RM100,000 come 2026.

In August, The Edge reported that Perodua chief Datuk Seri Zainal Abidin Ahmad had said that the company is “looking at a variety of ways to bring the Malaysian automotive ecosystem up to speed on how to produce the car and deliver it to the mass market”.

Perodua has yet to officially announce its EV target, tracking Japanese carmakers who have been slower than their Chinese counterparts in jumping into the market, in preference of the hybrid model until recently.

That is changing as concept EVs took the centre stage at Japan’s rebranded annual motor show, the Tokyo Mobility Show 2023 this week, with carmakers such as Honda, Toyota, and Daihatsu all positioning for electrification and carbon neutrality as the central theme of the exhibition that resumed four years after 2019.

Interestingly, BYD partnered with Japanese company Toyota some four years back in 2019 to set up a joint venture (JV) to undertake research and development of EVs.

While Sime Darby’s tie-up is with BYD presently, it is worth noting that Daihatsu, which owns 25% of Perodua, is also 100%-owned by Toyota Motor Corp. Toyota is also in a JV with UMW for the manufacturing and sale of Toyota models in Malaysia.

Top changes

Aside from the synergies or operational strategies that could arise from UMW's takeover of Sime Darby, all eyes are also on Perodua’s corporate structure moving forward, in light of the fragmented shareholding currently as well as previous speculations on the prospects of listing the carmaker to unlock its value.

Aside from Daihatsu’s 25% stake and UMW’s 38% in Perodua, the other shareholders are: Permodalan Nasional Bhd (PNB) (10%), Mitsui & Co (7%), and MBM Resources Bhd (20%).

Local-listed MBM Resources’ largest shareholders include the Employees Provident Fund (EPF), with a 5.88% stake, Lembaga Tabung Haji (4.81%), and Med-Bumikar Mara Sdn Bhd (50.07%).

On Aug 25, UMW announced that its president and group CEO Datuk Seri Ahmad Fuaad Mohd Kenali will be stepping down from his positions next Tuesday (Oct 31) upon tenure expiry.

Separately, MBM Resources CEO Muhammad Fateh Teh Abdullah resigned on Aug 24, the day PNB announced it was disposing of its 61.2% stake in UMW to Sime Darby Bhd.

Subsequently, MBM Resources appointed its executive directors to take over the CEO role until a new one is appointed, namely Datuk Zulfikri Osman and Low Hin Choong, both of whom are shareholders of Med-Bumikar, thus sparking potential shareholding changes in MBM Resources moving forward.

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Sime Darby makes takeover bid for UMW Holdings, including PNB's stake, at RM5 per share