Technical Collaborations: Expediting Technology Transfer for Local Businesses
Various approaches are undertaken by automotive players to adapt to latest developments, offten requiring such penetration to be expedient. A commonly practiced method is Technical Assistance Agreements (TAAs) between two companies. Usually a global automotive company will be partnered to a developing company.
Recently, a signing ceremony of technical assistance (TA) between Sipro Plastic Industries Sdn Bhd and Kanbishi Co. Ltd. took place in MAI Resource Centre (MAIRC), Rawang, a human capital development centre developed by Malaysia Automotive Institute (MAI).
Datuk Noraini Soltan, Managing Director, Sipro Plastic Industries Sdn Bhd said, “Despite being only 26 years old, Sipro Plastic Industries Sdn Bhd is very fortunate to partner with Kanbishi Co. Ltd. that has got 67 years of experience in the production of various automobile components”.
This TA agreement enables the transfer of new technologies and knowledge from Kanbishi Co., Ltd. to Sipro Plastic Industries Sdn Bhd with the objective of improving the quality of their products while meeting standard requirements and customer demands.
Technology transfer takes place through a variety of platforms. A commonly used channel is, joint venture activities through technical collaborations. Through this approach, local employees are trained by the foreign firms in their subsidiaries, allowing local talent to gain knowledge and experience from established companies. This leads to the enhancement of local workforces, reducing the dependance on external sources for the growth of the local automotive scene.
Datuk Noraini explained that this TA agreement will support Sipro Plastic Industries Sdn Bhd in the areas of quality inspection, production and facility preparation in mass production, localization activities as well as the training of Sipro staffs in the field of manufacturing.
“I would like to thank Dato’ Madani Sahari and MAI for allowing us to use MAIRC as the venue of this agreement. We had good support from the staffs of MAI. I would also like to express my sincere thank you to Perodua as without their support, this technical assistance agreement would never have taken place”, said Datuk Noraini Soltan, Managing Director, Sipro Plastic Industries Sdn Bhd.
Technical collaborations are designed so that all parties involved in the collaboration will benefit. Established companies tend to lean towards technical collaborations as it may open doors for them to invest in new facilities and technologies, leading to the growth of their business.
“Now it’s time to think about the future. The time has come for us to start a new operation here in Malaysia with our new partner, Sipro”, said Mr. Toshiharu Imanishi, President, Kanbishi Co., LTd..
He added, “With this TA agreement, Kanbishi is looking forward to improve the quality of our products to achieve global standards. Kanbishi and Sipro will work together to advance our technology for continuous improvement of our products.
“This TAA ceremony is timely as it serves as an example to show how local vendors such as Sipro is able to move forward in the areas of technology”, said Dato’ Madani Sahari, CEO, MAI.
“With the advent of new automotive industry-based projects, this agreement opens up to a future with plenty of promises and is also a good initiative to benefit the vendor community in Malaysia”, Dato’ Madani added.