DRB-HICOM NEEDS STRATEGY TO FACE MORE COMPETITIVE INDUSTRY, SAYS PM

PEKAN (Malaysia), Dec 12 (Bernama) -- DRB-Hicom Berhad, one of Malaysia's
leading corporations playing an integral role in the automotive manufacturing,
assembly and distribution, needs a strategy to maintain its success in an
increasingly competitive industry, Prime Minister Najib Razak said Saturday.

He said the group should not be satisfied with its current strategy although
it has brought success since the opening of its automotive complex 25 years ago
in Peramu Jaya in this royal town in east coast state of Pahang.

"They should implement a strategy to face the next 25 years," Najib said at
a ceremony to mark the 25th anniversary of the automotive complex.

"We cannot just retain the strategy which has been successful for the past
25 years but also take dynamic and timely measures to ensure success for the
next 25 years," he said.

Also present were the Ruler of Pahang Sultan Ahmad Shah, who officiated the
event, his consort Sultanah Kalsom and several other members of the Pahang
royal family.

Looking back, Najib said the automotive industry had started in Pekan 33
years ago with the opening of a factory by Tatab Industries Sdn Bhd in Peramu
Jaya in 1976.

He said after three decades, the industry began to show encouraging
development and progress, especially under the DRB-Hicom group which built its
own automotive complex in 1984.

Najib said besides offering job opportunities to about 2,200 workers,
especially those residing in Pekan, the complex has produced almost 5,000
vehicles since its opening.

"Its achievements are not only in making vehicles for well-known producers
like Isuzu and Suzuki but also for Mercedes-Benz which has given an opportunity
for it to assemble various models, including the S500 class which has the
highest value," he said.

Najib also said that the workers' capability and the technology being used
by the group are comparable with international standards.

The complex, he said, also contributed to the economy through the excise
duty and road tax which increased 78 per cent to RM442 million last year from
RM178 million in 2005. The figure is expected to reach RM525 million this year,
he added. (US$1=RM3.99)
-- BERNAMA