HO WAH GENTING BERHAD INKS MoU WITH SEIYONG MOTOR CO. LTD TO BE ONE OF THE FIRST TO MANUFACTURE, ASSEMBLE AND DISTRIBUTE SEIYONG SERIES OF ELECTRIC VEHICLE IN MALAYSIA
KUALA LUMPUR, 19 MARCH 2021 – Ho Wah Genting Berhad (“HWGB” or the “Company”) (Bursa Stock Code: 9601) today announced that its wholly-owned subsidiary, HWGB EV Sdn Bhd (“HWGB EV”) has entered into a Memorandum of Understanding (“MOU”) with Seiyong Motor Co. Ltd (“Seiyong Motor”) to establish a basis of co-operation and collaboration between HWGB EV and Seiyong Motor for the purposes of manufacturing, assembling and distribution of Seiyong Series of electric vehicles in Malaysia.
Seiyong Motor was incorporated in Beijing in 2017 with a registered capital of 262.4 million yuan. Seiyong motor mainly purposed its product to provide customers a “super cost-effective solution” with an “excellent experience” while also meeting the users’ expectations in their daily life, work and travel. In December 2019, Seiyong motor’s first pure electric vehicle, the Shiyong S1 (Little Bee) was mass-produced and officially launched for sale.
Seiyong motor shall appoint HWGB EV on a priority basis for the importation, sales, distribution, manufacturing, and assembly of the Seiyong motor series of electric vehicles in Malaysia with the brand name to be decided in the near future by HWGB EV and Seiyong Motor, collectively. Seiyong Motor will contribute the product quality and its technology, the branding approval, and other non-monetary related matters and in turn, HWGB will be transferring 20% of issued shares in HWGB EV to Seiyong Motor.
Currently, electric vehicles started to gain traction in Malaysia as it is widely considered as the preferable way of moving forward in terms of transport, as the world tries to reduce the impact of global warming. People are consciously making choices that will benefit the environment and it is believed that cleaner technology such as an electric vehicle, is the way forward as it reduces hydrocarbon consumption and greenhouse gas emissions.
In the regional electric vehicle industry, Malaysia has been left behind by its regional competitors, Thailand and Indonesia, as they have been seeing huge investments from global technology companies that manufacture and assemble Electronic Vehicles (“EV”) and EV-related technologies. However, Malaysia is moving in the right direction as the Malaysian Ministry of Environment and Water is set to launch a low carbon mobility action plan in 2021. This will encourage more electric vehicles in the country by increasing more electric vehicle charging stations and more tax incentives for buying electric vehicles which in turn will spur the demand and accessibility for electric vehicles.
Chief Executive Officer of HWGB, Dato’ Aaron Lim said: “HWGB expansion into the electric vehicle industry is part of the Company’s strategic plan to seek an alternative revenue source. We firmly believe the electric vehicle industry is a fast growing industry in Malaysia with a lot of untapped potentials. As the public environmental concerns are higher than ever before, we hope to provide and encourage a greener mode of transportation in Malaysia. This is the right direction for HWGB as we are confident that this venture will lead to greater growth for the Company in the foreseeable future”.