HWGB AND PARTNERS TO MATERIALISE THE DEVELOPMENT OF EV IN MALAYSIA
KUALA LUMPUR, 7 APRIL 2021 – Ho Wah Genting Berhad (“HWGB” or the “Company”) (Bursa Stock Code: 9601) together with its wholly-owned subsidiary, HWGB EV Sdn Bhd (“HWGB EV”) had entered into separate Memorandum of Understanding with Seiyong Motor Co. Ltd (“Seiyong Motor”), XIAMEN CHIEF Electric Vehicle Co. Ltd (“Xiamen Chief”), AiTou Venture Capital (“AiTou”) and Malton Berhad (“Malton”) (Bursa Stock Code: 6181) respectively for the purpose of introducing electric vehicles in Malaysia. HWGB recognizes the expertise that they can provide into the introduction of EV into Malaysia, where each of them plays a different but essential role in this venture.
On 19 March 2021, Seiyong Motor had entered into a MOU with HWGB EV for the purposes of manufacturing, assembling and distribution of Seiyong Series of electric vehicles in Malaysia. Seiyong Motor appointed HWGB EV on a priority basis for the importation, sales, distribution, manufacturing, and assembly of the Seiyong motor series of electric vehicles in Malaysia. Seiyong Motor belonged to Seiyong Group, where its core business is producing smart batteries, electric vehicles, and industrial capital. Seiyong Group included Seiyong Capital Division where its core business is investment banking and investment management and Seiyong Battery Group a leader in safety, environmental protection and smart batteries. Thus, Seiyong Motor will be able to contribute its quality product and its technology, the branding approval, and other non-monetary related matters. HWGB will be transferring 20% of issued shares in HWGB EV to Seiyong Motor.
HWGB signed a MoU with Xiamen Chief on 22 March 2021, to increase its EV diversity in the manufacturing, assembling, and distributing of electric vehicle. Xiamen Chief mainly produces a series of commercial electric vehicles (“Chief EV”) suitable for tourist attractions, resorts, gated communities, urban pedestrian streets, large factories, stadiums, hospitals and prisons. Xiamen Chief contributes its expertise in designing and manufacturing various special-purpose modified vehicles according to user’s needs and bringing the most advanced electric vehicle manufacturing technology from the United States, with all its key components imported into the new commercial EV line-up. HWGB shall procure the transfer of 10% of the issued shares in HWGB EV to Xiamen Chief.
AiTou mainly focuses on business start-ups in the field of IT technology and information services, and by signing the MoU with AiTou on 24 March 2021, HWGB will be able to tap into AiTou expertise in financial resources planning and the formulation of strategies of introducing electric vehicles in Malaysia and subsequently HWGB shall procure the transfer of 5% of the issued shares on HWGB EV to AiTou.
On 26 March 2021, HWGB had inked a MoU with Malton. Malton is a reputable property developer in Malaysia having completed more than RM2 billion worth of developments in the country. It is principally involved in property development, construction, property management and property investment. It is looking to collaborate with HWGB electric vehicle venture into introducing electric vehicle in Malaysia by investing in HWGB EV. It intends to invest in HWGB EV through the acquisition of a 14% equity interest in HWGB EV by a subsidiary nominated by Malton.
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.
The management of HWGB said: : “We firmly believe that the partnership with Seiyong Motor, Xiamen Chief, AiTou and Malton will boost our efforts in the expansion into the electric vehicle in Malaysia. This is just the beginning for HWGB and our partners as we hope to establish a fruitful working relationship with them. All parties fully recognize the potential of the Malaysian electric vehicle industry and we are looking to fully explore the potential of the industry itself. We have no doubts that this is the right direction for HWGB and our partners, thus we hope that this venture will lead to greater growth for both parties in the foreseeable future”.