China's largest privately held automotive group, Geely Holding Group, has entered into a Master Collaboration Agreement (MCA) with DRB-HICOM Berhad to develop Malaysia's Automotive Hi-Tech Valley (AHTV).

The announcement follows an earlier commitment by the Malaysian Prime Minister, Anwar Ibrahim, who in July mentioned Geely's intent to inject a massive $10 billion into the establishment of this auto hub, reported Reuters.

Situated in Tanjung Malim, western Malaysia, this project stands as a testament to the nation's growing emphasis on auto innovation and production.

The undertaking seeks to emphasize not just the manufacturing of automobiles but also to hone in on the creation of high-tech components crucial for new energy vehicles.

With this initiative, DRB hopes to become a magnet for both local and international investments, further fortifying Malaysia's position in the global car industry.

The report mentioned that DRB is the majority shareholder of Malaysian car maker Proton, in which Geely also has a 49.9% stake.

Daniel Li, CEO of Geely Holding, said, "We are working with DRB-HICOM and PROTON to jointly seize this historic opportunity through the AHTV to increase investment in science and technology, cultivate talents, innovate businesses, and increase product competitiveness and brand influence."

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