KUALA LUMPUR (Nov 24): Pecca Group Bhd signed a memorandum of understanding (MoU) with Malaysia Automotive Robotics and IoT Institute (MARii) on Wednesday (Nov 24) for the market expansion of products, as well as collaboration in electric vehicles (EVs) parts and components technology for the company and its subsidiaries.
In a statement, Pecca said the MoU will see MARii, a technology agency under the Ministry of International Trade and Industry (MITI), developing new opportunities for Pecca in its pursuit to expand its capabilities to offer more competitive products to global brands.
"This includes the enhancement of operational efficiency of Pecca’s business process by integrating Industry 4.0 systems, which will better prepare and fully equip the group to meet all the requirements of new customers.
"In addition, both parties agree to explore the development of automotive manufacturing capabilities for an expanded variety of vehicle parts – including EVs, its localisation and after-sales support ecosystem," said the company.
Present to witness the MoU exchange was MITI secretary general Datuk Lokman Hakim Ali. The MoU shall remain in effect for a period of two years, commencing Wednesday.
MARii chief executive officer Datuk Madani Sahari said the collaboration between the two public-private entities is an important contribution towards electrification in Malaysia, in line with the National Automotive Policy 2020 (NAP 2020) that envisions a strong pool of automotive component suppliers that are producing the critical components needed to make the NAP 2020 a reality.
Meanwhile, Pecca group managing director Datuk Teoh Hwa Cheng said: "The full duty exemptions for EVs as proposed in the recently tabled Budget 2022 will certainly broaden the market for EVs and EV-specific components in the country.
"Thus, the collaboration with MARii starting today will mark an exciting journey ahead for the group to start manufacturing new products related to the EV segment to capture fresh opportunities in the automotive and mobility industry.”
He said the group will also eventually look at venturing into manufacturing EVs and partnering with overseas EV brands for localisation.
“Through this MoU, Pecca will be able to transform into a Tier 1 supplier which markets and sells its current and new products to original equipment manufacturers (OEMs) with access to a larger client base. This is expected to contribute positively to the overall future earnings, as well as the earnings per share of the group,” said Teoh.
With a market capitalisation of about RM650 million, Pecca is principally involved in the styling, manufacturing and installation of leather upholstery for seat covers for the automotive and aviation industries.
It is the largest automotive leather upholstery player in Malaysia’s OEM and pre-delivery inspection passenger vehicle segments, and it also serves export markets such as Singapore, the United States, the Netherlands, Australia, New Zealand, the United Kingdom, Ireland and China.