Automotive Hi-Tech Valley (AHTV). What’s the latest progress?

Automotive Hi-Tech Valley (AHTV). What’s the latest progress?

Many years ago, I started hearing about AHTV. Actually, really not much news about it. It’s supposed to be an automotive hub where production of cars and also all the supporting industries are located next to each other. When this happens, we will have a super efficient car production hub where the costs associated with logistics such as loss of time due to transportation, loss of productive meetings which could happen in-person (sorry, online meetings CANNOT replace a productive in-person meeting no matter what you want to say).

Basically an ecosystem all in one place which will help all the businesses to grow. Commercialization of any new product will also happen faster too! So, there are lots of advantages to an automotive hub. Let’s read what our Deputy Investment, Trade and Industry Minister Sim Tze Tzin has to share in a recent article.

Article in businesstoday.com.my The Automotive Hi-Tech Valley (AHTV) in Tanjung Malim, Perak, has recorded RM7 billion in realised investments between 2018 and 2026, accounting for 23.3% of its projected RM30 billion investment target by 2035.

Deputy Investment, Trade and Industry Minister Sim Tze Tzin said the automotive hub had also expanded its workforce from around 2,000 people in 2018 to 9,300 in 2026, with employment projected to reach 22,800 by 2030.

For 2025 and 2026, further industrial development and upgrades are expected to cover electric vehicle production plants, expanded engine production capacity, metal stamping facilities, new logistics centres and warehouses, as well as research and development testing laboratories. Article in businesstoday.com.my

The key message in the article is 22,800 workforce

Seriously, if these 22,800 people are working there, they would need a place to stay, they would need places to have their meals, some may want to play pickleball and if families move to places nearer to their working place, then schools and supermarkets would also be needed. No need to mention but it will also include clinics, pet shops, tuition centers, daycare centers and more. In other words, the 22,800 projected workforce is just the workforce, we have yet to include their family members, we have yet to include all the trades and services which will be supporting this 22,800 workforce yeah. So, the impact is huge.

No numbers were mentioned but if we only take RM2,000 salary as a simple benchmark, every month, this group of 22,800 workforce will have a monthly salary of RM46 million. That’s one month yeah. 30 percent to housing is RM14 million… So, yes, I do hope what the deputy minister has shared will indeed come true in 2030. I know, what if it only reached 70 percent of the projection?! Haha. RM46 million at 70 percent projection is still RM32 million per month. All the best AHTV.

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