MBM Resources is involved in the distribution and dealership of major international and local vehicle brands in Malaysia such as Perodua, Daihatsu, Hino, Mitsubishi, Volkswagen and Volvo, as well as the manufacturing of automotive parts.
Assuming full acceptance of UMW Holdings’ proposed mandatory offer for MBM Resources, the company’s effective interest in Perodua will increase from 38% to 60.6%. The completion of the deal with PNB Equity Resources will increase its stake in Perodua to 70.6%.
“The proposed acquisitions are consistent with the company’s strategy to enhance its core businesses in the automotive, equipment and manufacturing and engineering segments. It will allow the company to further improve its prospects in the automotive segment via leveraging on Perodua’s strength in the national car segment, coupled with the company’s existing presence in the non-national car segment via the Toyota marque,” it added.
Teong elaborated that plans earmarked for MBE Malaysia will revolve around increasing efficiencies of the company, which include forming a digitised platform, improving accessibilities, and potentially become package drop points for GDEx.
“Following the completion of MBE’s acquisition, which is expected to be by the end of this quarter or early next quarter, we intend to roll out one new MBE outlet per month. As for GDEx, we have targeted to open 20 new branches this year, and are considering to market our products through re-sellers,” said Teong.
The retail delivery services or C2C segment remians a relatively untapped segment in the local logistics industry. For illustration purposes, the C2C segment in Japan, considered a mature market, makes up an estimated 15% of the nation’s logistics market. Currently, the retail delivery operations in GDEx contribute less than 2% of total turnover.
“No M&A and no targets have been identified at this moment. We are purely on organic growth and our focus is to grow our business as there are plenty of opportunities in the glove manufacturing distribution.”
“We plan to sell our antimicrobial gloves globally but the first launch will be in Europe in May this year, while we prepare the document for submission to the FDA. The FDA submission is a milestone for us because it gives credibility to our products. Once we get FDA approval and certification, it will be a good testimony for our products.”
Geely is targeting to ramp up production to a whopping 400,000 cars in 10 years to penetrate the domestic, regional and global markets.
Bumiputera vendors, salespersons as well service centre operators should take cognizance of the intense competition in the global automotive industry. It is imperative that they upgrade to sales, service, spare parts and spray painting (4S) service centres so as to benefit from Geely’s endeavour to create the infrastructure for the supply of competitively-priced auto components.
“Perhaps the biggest benefit, the deal will eliminate most tariffs between member countries, and where tariffs are maintained, cuts will be significant. For instance, the tariff on New Zealand beef exports to Japan will fall to 9% from 38.5% today, when the deal enters into force,” Sill said quoting studies.
Collectively, the improvements meant some 500 million people in 11 countries would have access to greater and cheaper choice of goods and services. “Combining over US$10 trillion of economic output — about 13.5% of the world’s GDP — these nations offer bright prospects to the business community too,” he added.