Saturday, August 11, 2018
Malaysia Automotive Institute and Institut Otomotif Indonesia Enter into a New Memorandum of Understanding
The Malaysia Automotive Institute (MAI) and the Institut Otomotif Indonesia (IOI) has entered into a a new Memorandum of Understanding (MoU) to foster long-term collaboration in the area of automotive industry development, yesterday. The new arrangement was entered into between the two countries' government agencies in order further realise future potential of automotive industry collaboration between the two counties.
The Malaysia Automotive Institute (MAI) and Institut Otomotif Indonesia (IOI) first began its collaboration within the automotive sector in 2017, where 10 Malaysian automotive companies have established business partnerships with Indonesian counterparts, demonstrating an ever growing symbiosis between the two nations as regional trading partners.
The arrangement comes in the form of a Memorandum of Agreement (MoA) bewteen the parties. This formalises the mutual collaboration and strengthens the working relationship between MAI and IOI. The arrangement will allow the parties to focus on human capital development, supply chain development, identification of market opportunities, automotive industry technology, quality enhancement, and research collaboration in the area of automotive industry development in Malaysia and Indonesia. The MoA exchange ceremony was witnessed by the Minister of Trade and Industry YB Darell Leiking and Mr. I Gusti Putu Suryawirawan, Director General for International Industrial Access and Development, Ministry of Industry Republic Indonesia
Institut Otomotif Indonesia (IOI) was established by Indonesia’s Ministry of Industry, on 20th May 2016, to the development of Indonesia's automotive industry. It functions similarly to MAI, which is an agency under Malaysia’s Ministry of International Trade and Industry (MITI).
In March 2018, MAI and IOI organized a joint business matching programme between Malaysian and Indonesian automotive vendors. This programme served as a platform for both Malaysian and Indonesian automotive vendors to identify potential business partners for greater market access in both countries. The programme was participated by 18 Malaysian and 30 Indonesian vendors from various automotive manufacturing clusters, in which 10 Malaysian vendors have successfully identified their potential business partners from Indonesia.
“Indonesia has long been a close trading partner of Malaysia. From 2006-2017, bilateral trade had improved significantly, almost doubled from US$9.02 billion in 2006, to US$16.89 billion last year. The 2017 figure represents 4.1% of Malaysia’s global trade, thus making Indonesia our 7th largest trading partner globally”, said YB Darell Leiking, Malaysia’s Minister of International Trade and Industry.
Speaking on the MoA signing, the Malaysian Minister added, “This should be seen as an early success for MAI and IOI. However, we must not rest on our laurels. Moving forward, MAI and IOI must continue to support and facilitate partnerships between both countries.”
MAI CEO, Dato’ Madani Sahari said at the event, “MAI and IOI will continue to support and facilitate partnerships between Malaysia and through various developmental programmes. More programmes will be organized by MAI and IOI in exploring potential market opportunities towards greater business-to-business (B2B) cooperation between the automotive industry players in both countries.”The MoA signing ceremony was held in conjunction with the MITI Minister’s working visit to Jakarta, Indonesia.
The bit of news could be most relevant if you are following the Malaysian automotive industry. It shows that MITI is still running its automotive policies through MAI and that this could be a precursor to the ASEAN car, or third national car that has been talked about. This arrangement could see more working relationships between automotive players from both countries. Of course, this is all mere opinion from our part.
From left to right
i) Mr. Zamshari Shaharan, Malaysia’s Deputy Chief of Mission,
ii) Dato' Madani Sahari, CEO of Malaysia Automotive Institute
iii) YB Darell Leiking, Minister of International Trade and industry
iv) Mr. I Gusti Putu Suryawirawan, Director General for International Industrial Access and Development, Ministry of Industry Republic Indonesia
v) Mr. I Made Dana Tangkas, President of Institut Otomotif Indonesia