Catalist-listed MeGroup has been awarded Malaysia’s first national car, Proton, to its growing dealership portfolio on June 7.
The group’s first Proton dealership outlet will begin its 35 operations by December, while the 4S services will be operational by June 2022.
The facility will be located on a two-acre plot of land at Telok Panglima Garang, Selangor, in Malaysia, and will be MeGroup’s biggest automobile facility.
The establishment of the dealership will be funded through the use of the balance of the group’s IPO proceeds and internally generated funds.
The latest award by Proton brings the group’s total number of brands in its dealership business to seven, and the number of dealership outlets in its portfolio to 11.
“This appointment by Proton has been in the making for almost a year now, and we are excited to have finally been able to onboard Proton as one of our dealership brands despite the challenges we had to face throughout the Covid-19 pandemic,” says Jeffery Wong, head of growth and expansion and head of dealerships at MeGroup.
“We will continue to face considerable headwinds as the country is now in a total nationwide lockdown for all social and economic sectors, from June 1 to June 14. This will be another outbreak hurdle that the group will need to overcome, but we are confident that once the infection rates are under control and social activities can resume, Malaysia’s automotive sector will rebound and continue on its growth path,” adds Wong.
Operations in the group will be limited during Malaysia’s full movement control order (MCO), which may have a “material adverse impact” on its financial results in the financial year ending March 31, 2022.
While the group is unable to determine the full extent of the impact of the MCO, it says it will continue to look at expansion opportunities for its product offerings in the automotive sector.
Shares in MeGroup closed flat at 16.5 cents on June 7.
