DRB-Hicom share price rises 2.4% on news of proposed collaboration for Asean car

PETALING JAYA: DRB-Hicom Bhd's share price gained 2.4% on early trade to RM2.13 on news of it studying the proposed collaboration between Malaysia and Indonesia to produce an Asean car.

At 10.56 am, the stock was trading at RM2.10 with some 2.44 million shares done.

Group managing director Datuk Seri Syed Faisal Syed Albar said yesterday, that a discussion on the matter is taking place as a memorandum of understanding was signed in 2015 between its subsidiary, Proton Holdings Bhd, and an Indonesian company to undertake the joint effort.

"There is no cost involved and we need to study it a lot," he told reporters after briefing the Council of Eminent Persons here yesterday.

Proton is 50.1% owned by DRB-Hicom and 49.9% by China-based automaker Zhejiang Geely Holding Group via its wholly-owned subsidiary, Geely International (Hong Kong) Ltd.

It was reported earlier that the joint effort between Proton and Indonesia to produce an Asean car would be revived following talks between Prime Minister Tun Dr Mahathir Mohamad and Indonesian President Joko Widodo during the former's visit to Indonesia last month.

Meanwhile, Syed Faisal, who is also Proton chairman, disclosed that Geely has invited Mahathir to visit the company's facilities in China during the prime minister's visit to the country next month.