DALIAN: Sabah is poised to become a commercial vehicle assembly hub for the Borneo region following a strategic partnership between Chinese automotive manufacturer Dongfeng and Kim Teck Cheong Consolidated Berhad (KTC), a move expected to create an estimated 1,000 jobs and strengthen the state’s industrial and logistics sectors.
The collaboration includes plans to establish an assembly plant in Sabah, which is envisioned as a strategic hub serving markets across Sabah, Sarawak and Indonesia.
The proposal was discussed during a video conference between Dongfeng Motor executives based in Wuhan, China and the Sabah delegation in Dalian led by Sabah Deputy Chief Minister and Minister of Industrial Development, Entrepreneurship and Transportation, Datuk Ewon Benedick.
During the video conference, Dongfeng’s senior management formally sought the Sabah government’s support and facilitation for the proposed joint venture assembly plant with KTC in the state.
Ewon welcomed the proposed investment, describing it as aligned with the state government’s broader agenda to drive industrial and trade development.
He said the state government had proposed the Kota Belud Industrial Park as a potential site for the assembly plant.
“We welcome investments of this nature as they are in line with Sabah’s efforts to strengthen industrial development, logistics and trade activities.
“The proposed assembly plant will not only create employment opportunities for local communities but also facilitate technology transfer, skills training and talent development in the automotive industry,” he said in a congratulatory message delivered during the video conference.
Also present on the Sabah side were Chief Coordinating Officer of the Sabah Maju Jaya (SMJ) Secretariat, Datuk Rosmadi Sulai, Permanent Secretary of the Ministry of Industrial Development, Entrepreneurship and Transport Sabah, Datuk Thomas Logijin, and Chairman of the Sabah Ports Authority, Datuk Donald Peter Mojuntin.
Dongfeng Motor Import & Export Co Ltd was represented by its General Manager, Yu Tao, Assistant General Manager Zhang Yifan, Director of Asia-Pacific RHD Region Cheng Xiao, and Malaysia Market Sales Director Zhou Yexiong.
Meanwhile, KTC Managing Director Dexter Lau said the company had already secured RM30 million worth of purchases from Dongfeng as part of the initial phase of the collaboration.
He said Dongfeng, one of China’s largest vehicle manufacturers, is targeting a top-three market position in East Malaysia’s commercial vehicle sector within two years.
“Sabah will enter a new phase of industrial development focusing on the assembly of light trucks and heavy machinery to support the growth of businesses and the state’s logistics ecosystem.
“This will also mark a historic milestone for the Borneo region, with Sabah potentially becoming home to the first vehicle assembly plant serving the entire island,” he said.
Dexter added that the proposed investment and assembly operations are expected to create an estimated 1,000 job opportunities for Sabahans across operational, technical and vehicle assembly sectors.
He also said Dongfeng had committed to transferring technology and providing technical training to local workers to enhance Sabah’s automotive manufacturing capabilities.
According to him, the initiative also complements Sabah’s blue economy and manufacturing strategies by leveraging the state’s shipping and port infrastructure to export products across the ASEAN region.
Earlier, Dongfeng representatives said the company selected KTC as its strategic partner due to the group’s strong corporate capabilities and extensive logistics network throughout Malaysia.
The company also expressed confidence that, with the support of the Sabah government and KTC’s local expertise, Dongfeng could emerge as the leading Chinese commercial vehicle brand in the region within three years while positioning itself among the top three commercial vehicle players in East Malaysia.
