PETALING JAYA: Mirzan Mahathir’s Betamek Bhd, through its wholly owned subsidiary, Betamek Electronics (M) Sdn Bhd, has secured a contract worth RM123.5 million to provide electronics components to national carmaker Perusahaan Otomobil Kedua Sdn Bhd (Perodua).
In its Bursa filing on Feb 14, the company said it had received a letter of appointment (LOA) to supply various electronics parts for a new Perodua model.
It said the supply of these parts had commenced in the fourth quarter of its financial year ending March 31, 2023, and would continue for six years.
Betamek is principally involved in providing electronic manufacturing services (EMS) for the automotive markets predominantly in Malaysia.
The contract is a significant win for the company, which was listed on the ACE Market on Oct 26 last year. However, this is not the first contract Betamek has received from Perodua.
The company has a business relationship with Perodua that dates back to the mid-1990s. For FY2022, 95% of its revenue was sourced from Perodua Group.
Mirzan, the eldest son of former prime minister Dr Mahathir Mohamad, holds a 72% stake in the company via Iskandar Holdings Sdn Bhd, an investment holding company.
Commenting on Betamek’s latest deal with Perodua, he is optimistic demand for its audio-visual products and accessories for vehicles will continue to grow as Perodua continues to see rising demand for its vehicles.
As of the beginning of the year, the car maker had 220,000 outstanding bookings yet to be fulfilled. It recently announced it is looking to maximise production to 330,000 units and sales to 314,000 units this year, underpinned by outstanding orders carried forward.
Mirzan noted this production target is 14.2% higher than their 2022 tally of 289,054 units produced, while its sales target projection is 11.3% higher than the 282,019 units from the year before.
“Our partnership with Perodua spans over two decades, and we are delighted to continue our relationship by supplying our latest technology for their latest vehicle models,” Mirzan, who is Betamax’s managing director, said in a recent statement.
A new direction for Betamek?
Mindful that Betamek is perhaps too dependent on Perodua, Mirzan is seeking new opportunities in the fast-growing electric vehicle (EV) sector.
“The move towards EV will come faster than expected, and advances in technology are supporting this. Betamek is looking to invest and we are focused on strengthening out R&D (research and development),” he said in an interview last October.
“Betamek is in a unique position to leverage this growing market as hybrid, electric and autonomous vehicles gain global market share.”
The company made its debut on the ACE Market at an IPO price of 50 sen. At the close of trading yesterday, the stock rose 3 sen to 61 sen, giving it a market capitalisation of RM274.5 million.
Siblings in business and politics
Apart from Betamek, Mirzan is more known as the founder and CEO of Crescent Capital Sdn Bhd, an investment holding and financial advisory firm.
He also serves as non-executive director of oil refining and marketing company Petron Corporation, which is listed on the Philippine Stock Exchange, and as non-executive chairman of jewellery company Aurora Italia International Bhd.
Up to 2020, he also was executive chairman of drilling and related equipment distributor SBI Offshore Ltd in Singapore.
His younger brother, Mokhzani, the second son of Mahathir, is arguably more well-known as a corporate figure through his private holding company, Kencana Capital Sdn Bhd, which has investments in IT, property and other businesses.
His other brother, Mukhriz, is a politician who served as the 11th and 13 menteri besar of Kedah, and also as deputy international trade and industry minister in the previous Barisan Nasional administrations. - FMT
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