Malaysia

Malaysia's automotive parts and components sub-sector is an industry on the rise, registering $1.16 billion in the first 10 months of 2002, according to the Malaysian Industrial Development Authority (MIDA). In Malaysia alone, it supplies four motor vehicle manufacturers holding National status, as well as nine assemblers and 23 franchise holders. Among roughly 350 players in the industry, APM is considered the largest independent auto components manufacturer.

Established in 1978, Auto Parts Manufacturers initially produced leaf springs, radiators, shock absorbers and seats on a small scale for parent company Tan Chong Motor Group. After demerging from Tan Chong in 1999, it took the name APM Automotive Holdings. At present it has formed several subsidiaries in Malaysia as well as in China, the US, Indonesia and Australia.

In an interview with WER earlier in 2003, Koo Sian Chu, the group's executive director, said with evident pride: "Every vehicle that moves in Malaysia today has one or more parts from APM."

Koo Sian Chu, the late managing director of APM Automotive Holdings

He identified two major reasons behind the group's success: first, the establishment of government-designated "national car" brands such as Proton and Perodua which began to source more components locally in what had previously been an assembly industry. This resulted in the accelerated development of the local auto components sub sector as a whole.

Second, he pointed to APM's having built a reputation for lasting and mutually rewarding relationships with its joint venture partners, especially those that share the group's objective to develop the industry in Malaysia.

With a long history of working closely with Japanese companies since its establishment, APM today also has more than 10 joint ventures and technical assistance agreements with Japanese auto makers, in addition to other partnerships with American and Australian companies.

"At APM we consider ourselves a long term enterprise for developing the country's auto industry," Koo declared. "When that interest or objective is shared with a partner, my mission is to ensure a joint venture that is successful for both parties for the long term."

Shortly after this interview was conducted, APM's executive director Koo Sian Chu passed away. According to C Y Than, the company's marketing director, APM is running business as usual and a search for a new executive director is underway.

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