Thousands of new jobs are expected to be created as Geely is targeting to produce 500,000 cars for the South-east Asian market alone by 2020. — Reuters pic

TANJUNG MALIM, July 23 — Tanjung Malim, home of national car maker Proton, is set to become Malaysia’s next boom town, thanks to the recent acquisition of virtually half of its equity by China’s Zhejiang Geely Holdings Group.

Thousands of new jobs are expected to be created with the economic spillover effects transforming the quiet Perak town and beyond as Geely, backed by its world class research and development and design centres, is targeting to produce 500,000 cars for the South-east Asian market alone by 2020.

Malaysia will by then become the right-hand drive production hub for Geely in the Asean region, thus allowing Tanjung Malim to run its maximum capacity, including the assembly of Volvo cars.

Yet another bonus for Proton following its tie-up with Geely that was sealed recently is getting the exclusive rights to Geely’s products and latest technology and access to markets beyond South-east Asia and China, the world’s largest car market with annual sales at a staggering 28 million.

Some 2.1 million cars were sold in Asean countries in 2016, up 85 per cent from 2006.

One man grinning from ear to ear about Tanjung Malim’s prospects in the near future is Mohd Syukri Azaari, the President of the District Council, who said when Proton set up its plant here in 2000, it led to the creation of Proton City and the new 320-hectare campus of Universiti Perguruan Sultan Idris, the university which produces graduate teachers.

Proton is the biggest employer here with over 2,000 jobs, half of them locals and with tremendous impact on Tanjung Malim’s economy.

“This led to the Slim River sub-district to be upgraded to the new Muallim district last year and new municipalities like Bandar Behrang 2020 and Kota Malim Prima,” he told Bernama.

Mohd Syukri was most pleased with the revenue collection of his district council before and in the post-Proton era. In 1999, its collection was a mere RM4 million but so far this alone, it has gone up to RM15 million.

“When we at the council heard about Proton going into strategic partnership with Geely of China, we can already visualise that an economic tsunami will happen in Tanjung Malim,” he added.

On another front, the number of landed property here has doubled to 20,000 after Proton’s existence here.

He expected the Tanjung Malim District Council to earn a revenue of RM20 million in the near future with the population rising to 100,000 once all of Proton’s expansion plans got under way, compared with 70,000 now and 40,000 prior the emergence of the auto industry here.

“It is even possible to upgrade the District Council status to that of a Municipal Council and this will facilitate the government’s plan to create the proposed 1Malaysia Youth City here,” he said. — Bernama

Calvin comments:

Geely being the Star Rising Performing Stock on Hong Kong Bourse saw a 275% rise in its share price to be No. 1 due to its immense profits garnered after its acquisition of Volvo.

So Geely is in Multi year expansion - first JV with Proton in Malaysia. Next on the agenda will be the Transformation of Tg Malim as an export Hub for Cars to ASEAN 10 Nations & more than 100 countries worldwide.

The Influx of Massive Investments & Flood of over 60,000 Proton Staff alone will cause Multi Year Boom emanating from Tg Malim to all its surrounding territories.

Among those that will benefit directly are 250 Proton Vendors that produce all kinds os parts for Proton - ranging from Car Plastic Dashbord, Bumpers & Spoilers, Headlamps, Taillamps, Reverse Sensors, Remote Control Alarms, Selt Belts, ABS Brakes, Brake pads, batteries, wipers, windscreen, side mirror, back mirror, tyres, rims, radio, fabric seats, leather seats, floor mats, and a myriad of other parts.

Many factories are expected to relocate here. 

And Companies with Landbanks in or near Tg Malim will also benefit greatly for these reasons

1) More demand for shops, industrial supporting factories, houses, recreations, places of entertainment, restaurants, petrol pump stations, hair saloons & many other businesses that cater to human needs.

2) This  will cause a rise of Land Prices & Property prices as a natural consequent.

You don't need rocket science to understand this corelation.

And these are the Stocks to pay attention to

1) DRB - It owns 4,000 Acres in Proton City

2) MAJU PERAK - It owns adjoining lands to Proton City

3) L&G - it owns 2,494 acres of Freehold Lands in Kerling. The Book Value of these Lands are only 44.3 sen psf now.

And this map shows how near it is to Tg Malim

15 min (14.2 km) via Route 1

L&G has also just acquired a whole Township in Serendah at the price of 81 sen psf. It has a total of 167 acres

See

40 min (44.5 km) via Route 1

4) TALAMT - it has Landbanks in Bkt Beruntung & Bkt Sentosa

See

27 min (34.9 km) via Lebuhraya Utara - Selatan/AH2/E1

5) BINA PURI - It owns the Lattar Highway (50%)

41 min (58.1 km) via Lebuhraya Utara - Selatan/AH2/E1

6) BJ CORP - It owns 3,200 Acres Lands in Bandar Bistari Jaya

43 min (51.6 km) via B33 and Lebuhraya Utara - Selatan/AH2/E1

 

All these Stocks are currently overlooked and neglected.

SO TAKE POSITION EARLY

REGARDS, Calvin Tan, Singapore