KUALA LUMPUR (November 25): Pecca Group Bhd (Pecca) signed a Memorandum of Understanding (MoU) with Malaysia Automotive Robotics and IoT Institute (MARii) for the group’s market expansion of products as well as collaboration in electric vehicles (EVs) parts and components technology.
In a statement, it 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 localization and after sales support ecosystem.
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 now.
Commenting the MoU signed, MARii chief executive officer Datuk Ts Madani Sahari stated: “We are proud to initiate this collaboration with key industry players such as Pecca, as this is yet another example of public-private partnership in one of the most exciting times for electrification in this country.
“We believe this 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 NAP2020 a reality.”
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 explained that in the longer term, 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 itself into a Tier 1 supplier which markets and sells its current and new products to 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,” concluded Teoh.
With a market capitalisation of approximately RM650 million, Pecca is principally involved in the styling, manufacturing and installation of leather upholstery for seat covers for the automotive and aviation industries.