Amtel

AMTEL Holdings Bhd is venturing into the manufacturing and assembly of motor vehicles as part of a strategic move to expand its presence in the automotive supply chain and tap into underserved segments, particularly in electric and specialised vehicles.

In a filing with Bursa Malaysia today, the group said the initiative will be undertaken by its wholly owned subsidiary, Amtel Cellular Sdn Bhd (AMCSB), and will target both domestic and export markets.

The new business will involve assembling motor vehicles using a mix of local and imported components, with a focus on modular and flexible designs that cater to various customer needs, including passenger, commercial and specialty models.

“The venture is aligned with our long-term expansion strategy and leverages our existing know-how in automotive electronics, telematics and ICT,” the company said.

Amtel noted that initial funding for the business will be drawn from internally generated funds and/or bank borrowings, with no significant capital outlay anticipated in the early stages.

The group said the move supports its goal of broadening its customer base, creating additional revenue streams and improving long-term financial performance.

There will be no effect on the company’s issued share capital, shareholding structure or near-term earnings.

“The board believes the motor vehicle business is in the best interest of the company and complements the group’s existing capabilities in ICT and automotive systems,” it added. — TMR

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