DRB Hicom, a Malaysian manufacturer, stated on Oct 11 that it has agreed to develop an automotive hub in Malaysia with Chinese automaker Zhejiang Geely Holding Group Co Ltd. This follows Malaysian Prime Minister Anwar Ibrahim's announcement in July that Geely will invest $10 billion in Tanjung Malim, a town in western Malaysia, to develop an auto-making cluster.

"The (agreement) sets forth the underlying principles, governance framework and mutual commitment of the Automotive Hi-Tech Valley project," the Department of Transportation said in a press release.

The project will focus on manufacturing automobiles and high-technology components and parts for new energy vehicles, the company said, adding that it expects to attract investment from local and foreign firms. DRB is the majority shareholder of Malaysian carmaker Proton, in which Geely also has a 49.9 per cent stake.

Geely, also known as Zhejiang Geely Holding Group Co., Ltd., is a Chinese multinational automobile company headquartered in Hangzhou, Zhejiang. The corporation is privately owned by Li Shufu, a Chinese billionaire entrepreneur. It was created in 1986 and entered the vehicle industry through its subsidiary Geely Auto in 1997. Geely Auto is the sixth largest vehicle manufacturer in China, with 1.328 million sales in 2021. Over 2.2 million cars were sold globally in 2021, with over 17,926 plug-in electric vehicles sold in January 2022.