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

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