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Government monitors impact of rising Iran-Israel tensions on Malaysia: Tengku Zafrul

Publish date: Fri, 19 Apr 2024, 08:11 PM

SERENDAH: The government is closely monitoring the impact of escalating tensions between Iran and Israel on the Malaysian economy, said  Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Tengku Zafrul said recently, there were few reports indicating a possible escalation in Iran but the market remained relatively calm. 

"However, there is concern that if the situation escalates further, oil prices could be affected, as the region is a crucial route for oil exports," he told the press conference at the construction commencement ceremony for MCE Holdings Bhd's (MCE) Auto Hub here today. 

Spanning an eight-acre site, the first phase of the hub represents an initial investment of RM50 million.

Tengku Zafrul said the development of the MCE Auto Hub will further contribute to the growth of this sector, which contributes around RM40 billion to Malaysia's gross domestic product (GDP), while providing 700,000 jobs. 

"More importantly, as envisaged by key policies such as NIMP2030 and the National Automotive Policy, the MCE Auto Hub will also propel the nation towards regional leadership in automotive electronics manufacturing, while making Malaysia more attractive for auto investors," he said. 

MCE group managing director Goh Kar Chun said the company's commitment to an investment of RM150 million to RM200 million over the next decade. 

Goh said this underscores MCE's dedication to innovation, enabling the company to meet growing demand for advanced electronic components for electric vehicles (EVs) and internal combustion engine (ICE) vehicles to ensure the company remains competitive.

"I would also like to highlight that the strategic location of the UMW High Value Manufacturing Park offers significant logistical and cost benefits, allowing us to be closer to some of our customers, partners, and suppliers.

"This proximity facilitates better collaboration and helps us further develop our ongoing partnerships to foster a robust local ecosystem in automotive electronics, contributing to the overall economic growth of the industry," he added. 

Construction of the first phase of MCE Auto Hub is expected to be completed by the end of the year, with operations slated to begin in 2025.

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