SHAH ALAM: UMW Holdings Bhd has allocated RM607mil as capital expenditure (capex) mainly to upgrade its manufacturing plants and buy new equipment for its heavy industry division.

Its president and group CEO Badrul Feisal Abdul Rahim said the group was also working on a two-year plan to have more Toyota models assembled in Malaysia. 

“We are allocating about RM170mil to upgrade our plant in Shah Alam for automation and additional manufacturing capacity,” he said. 

“Last year, we completed the new Toyota manufacturing plant in Bukit Raja which increased our manufacturing capacity for completely knocked down (CKD) models,” he told reporters at a briefing on Thursday.

In January this year, UMW rolled out its first batch of the all new Vios followed by the CKD Toyota Yaris. 

“We also looking to introduce more CKD models to the Malaysian market in the coming years,” he said.

Badrul also said UMW planned to sell more Toyota and Perodua cars this year due to the launch of new models launches including an all-new Vios and a CKD Yaris hatchback, as well as Perodua cars.

“We hope the cut in interest rates would increase demand for cars and offset the negative sentiment from the trade war,” he said. 

The remaining capex would be used to buy new equipment to expand its heavy machinery leasing business and its manufacturing business in the auto, lubricants and aerospace segments.

 “This year will be a good year for UMW,” Badrul said.