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ETP ANNUAL REPORT 2011
EPP 4
Transforming Automotive Workshops
As vehicle registration continues to increase
year-on-year in tandem with the population,
workforce and urban growth, demand
for automotive service and repair sector
will also increase. According to statistics
from the Road Transport Department, as
at 31 December 2011, there are almost 16
million active vehicles on the road, of which
more than 60 per cent are passenger and
commercial vehicles. As such, the need to
address the large variations in the quality
and service level provided in this sector
is significant to take advantage of the
estimated RM10 billion spent annually on
vehicle maintenance.
Workshops that provide better service
quality and demonstrate transparency
over their charges could encourage
higher spending by vehicle owners. The
implementation of this project is expected
to contribute RM1.1 billion in GNI and create
9,100 jobs by 2020.
Achievements
The Automotive Workshop Modernisation
(ATOM) project was kicked off in 2011. The
Automobile Association of Malaysia (AAM),
Automotive After-sales Industry Malaysia
(AAIM), the Malaysian Association of Tyres
Retreaders and Dealers Societies (MATRDS),
Persatuan Pengusaha Industri-Industri
Bengkel Malaysia (PPIBM), HYL Marketing
Sdn Bhd, ITE Industrial Tools and Equipment
Sdn Bhd and PNT Marketing were the seven
consultants for ATOM authorised by the
Ministry of Domestic Trade, Co-operative
and Consumerism (MDTCC).
Under the ATOM project, the consultants
provided their expertise and advisory
services to the participating workshop
owners. This included the redesigning of
workshop layouts, planning for renovation
and upgrading activities, purchasing of
machinery and equipment including pointof-sale
system terminals, outlining standard
operating procedures, hand-holding and
training on entrepreneurship, automotive
skills and inventory management.
Additionally, Bank Kerjasama Rakyat
Malaysia Bhd facilitated the screening and
the disbursement of loans to the workshop
owners. The owners were offered up to
RM100,000 in soft loans with a repayment
term of 15 years at three per cent interest.
78
ATOM gained momentum in October 2011,
when more workshops participated in the
two-month modernisation process. With
sustained efforts by both the MDTCC and
the consultants, seven workshops (see
exhibit 4.7) have successfully completed the
transformation process.
By December 2011, 55 workshops were
successfully transformed, exceeding the
target of 50 workshops. Currently, 11
more are undergoing the modernisation
process and are expected to be completed
by Q1 2012.
ATOM participation consisted of the Malay
community at 76 per cent, followed by the
Chinese community at 22 per cent while
the Indian community was at two per
cent. Among the consultants, AAM topped
the list for completing the modernisation
of 22 workshops, followed by HYL (17
workshops) and AAIM and PNT (two each).
Similar to TUKAR, ATOM also witnessed the
involvement of cooperatives to help boost
its members’ participation.
Exhibit 4.7
State Interested
As highlighted in Exhibit 4.7, Penang led
other states with the completion of 17
workshops, followed by Selangor (nine
workshops). Melaka and Terengganu also
completed six workshops each.
Moving Forward
500 workshops are targeted to be
modernised by 2020. In 2012, another 50
workshops will be transformed.
Cleared
CCRIS/CTOS
approved by
Bank Rakyat
WIP Completed
Perlis 4 5 0 0 0
Kedah 38 31 19 5 5
Pulau Pinang 106 68 28 4 17
Perak 60 32 8 4 2
Selangor 59 33 11 3 9
Negeri Sembilan 23 13 4 1 1
Kuala Lumpur 19 18 5 0 2
Melaka 25 13 10 0 6
Johor 34 29 8 1 5
Pahang 34 29 9 3 2
Terengganu 36 28 13 3 6
Kelantan 43 32 3 1 0
Sabah 22 0 0 0 0
Sarawak 96 27 2 0 0
Labuan 1 17 3 0 0
Total 600 375 123 25 55
Number of workshops in different states
Workshops across Malaysia will be transformed
gradually