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Perodua

Perodua in the midst of creative pitch

Perodua is in the midst of a creative pitch that sees approximately four agencies vying for the account. A+M understands the appointment will be for a period of two years. The incumbent for the account is Spin Communications, which has been working with Perodua for approximately seven years.

A+M has reached out to Perodua for comment.

Last year, Perodua appointed Ignite Kuala Lumpur, the boutique agency within FCB Malaysia’s network, to handle its festive communications portfolio for 2017. The win was a result of a multi-agency pitch involving several international and local Malaysian agencies.

In 2017, Perodua also launched a Chinese New Year campaign together with Ignite titled #MuhibahDiJalanraya, covering print, social and digital. The campaign encouraged Malaysians to respect one another on the road as much as they would towards each other’s tradition.

Recently, UMW Holdings (UMWH) said it is looking to increase its strategic stake in car manufacturer Perodua through two proposals, with the first being the acquisition of 50.07% equity interest in MBM Resources held by Med-Bumikar Mara (Med-Bumikar) and Central Shore (CSSB) at approximately RM501.0 million.

According to the Bursa filing, UMWH also offered to acquire 10% equity interest in Perodua from PNB Equity Resource Corporation (PERC) at about RM417.5 million. MBMR currently holds 22.58% effective equity interest in Perodua, while UMW Corporation, the wholly-owned subsidiary of UMWH, currently holds 48.00% equity interest in the car manufacturer.

The completion of the proposed MBMR acquisition will increase UMWH’s interest in Perodua to 60.6% from 38.0%, which will further increase to 70.6% following the completion of the proposed Perodua acquisition.

The proposed acquisitions are consistent with UMWH’s strategy to enhance its core businesses in the automotive, equipment and manufacturing and engineering segments. It will allow the company to further improve its prospects in the automotive segment by leveraging Perodua’s strength in the national car segment, coupled with its existing presence in the non-national car segment via the Toyota brand.

In addition to strengthening its exposure in the Perodua brand, UMWH will also boost exposure in the commercial vehicle segment through MBMR’s multi-brand dealerships, such as Daihatsu and Hino. MBMR’s auto parts manufacturing business, including its wheels manufacturing, safety products and noise products, will also widen UMWH’s offerings in the manufacturing segment.

Formed in 1993, Perodua is a joint venture between Malaysian and Japanese partners. It began operations as a private limited company under the name of United Motor Works and subsequently changed its name to Perusahaan Otomobil Kedua.

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