The Extension of Market
According to Datin Sri Feona Wan Junaidi, chairman of DNC Asiatic Holdings Sdn Bhd, Demak, one of the fastest-growing motorbike companies in Malaysia, is eager to extend its market into South-East Asia, South Asia, West Asia, and Africa in the next years. She said that Demak would utilize its new RM43 million manufacturing facility at Olak Lempit, close by, as its distribution center for market development into South-East Asian emerging economies.
Demak operates in Colombo, Sri Lanka, focusing on growing markets in South Asia, West Asia, and Africa.
The Two Regional Centers
She added in her remarks at the ceremonial opening of Demak Malaysia's current company headquarters and production company in Banting on Tuesday that "Malaysia and Sri Lanka will act as two significant regional distribution centers for our growing market into the emerging markets."
Datuk Seri Mustapa Mohamed, Minister of International Trade and Industry, presided over the ceremony. Demak's manufacturing facility has two manufacturing lines, warehousing, training, and research and innovation facilities on a 3.15ha property with a built-up area of 260,000 sq ft. The fully integrated plant also features manufacturing facilities for metal-based parts, plastic components, and motorbike chassis.
After its body corporate, DNC Asiatic Enterprises, received approval from the Foreign Commerce and Industry Department to manufacture and produce bikes in December 2002, the Demak bike trademark made its commercial debut in Sarawak in 2003.
Feona stated that Demak has experienced some sales expansion during the first half of this calendar year despite the less optimistic consumer sentiment, enabling the firm to keep a customer base of over 10% in Malaysia. In the meantime, Mustapa urged regional motorcycle producers to boost their original programming in their manufacturing and broaden their market globally in order to stay competitive when speaking to reporters later.
Malaysia’s Free Market Economy
The makers must, however, watch out that the cost of their motorcycle does not rise and result in losses for the businesses. Demak uses 45% original programming in its production, but some businesses use 90% to 95% local content, according to him.
In addition, the minister stated that, in light of Malaysia's practice of a free market economy, local automakers are not restricted from building sedans with larger engines. As a result, he argued, any local automaker was free to build vehicles that satisfy consumer demands. "In this country, there is a free market; whomever can provide better goods at a better price wins. In the end, it comes down to personal preference," he remarked.
The Impact On Sales Of Proton’s Sedan Models
When asked if the recent release of Perodua's debut sedan, the Bezza, will affect sales of the sedan models produced by Proton Holdings Bhd, Mustapa responded in the negative. In the past, there have been claims that the Perodua car will have an impact on the sales of Proton's sedan models, including the Saga, Iriz, and Persona.
Mustapa declared that the government will not obstruct Proton's decision to formally choose a strategic international partner with whom it can develop a closer working relationship in the coming years.