| These are gratifying
times for Ingress Corp Bhd. It has proved its mettle
in Thailand where it is operating profitably. It
has now set up shop in Indonesia. Star Biz associate
editor C.S. Tan interviews executive vice-chairman
Rameli Musa on Ingress' progress.
STARBIZ: Was your business in Thailand more
profitable than your business here?
Rameli Musa: Last year, our Thai
operations overtook the (earnings) contribution
from the Malaysian side.
StarBiz: Who are your major customers
in Thailand?
Rameli: GM Isuzu, Mazda,
Mitsubishi and Honda. By the end of this year, Honda
will be our biggest customer by revenue. But in
terms of units of car sets, it may be GM Isuzu.
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Rameli
Musa says Ingress is optimistic of the
Indonesian market in the long run.
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StarBiz: What new contracts
will generate more turnover this year?
Rameli: The new factory
we are building in Ayuthia to supply parts for a
new Honda model will be ready by year-end. Now we
are supplying parts for the Honda City, Accord and
Jazz.
StarBiz: Why are you building your
third factory in Thailand in Ayuthia?
Rameli:The Honda plant
is there. It's now a big customer. Our existing
two factories are in Rayong. That's where Mazda's
plant is. Mazda was our first customer in Thailand.
StarBiz: What's the state of the
auto market in Thailand?
Rameli: They produced
930,000 vehicles last year. This year, they've estimated
a total industry volume (TIV) of 1.1 million vehicles
and of that, 40% would be exported. Growth would
depend on the domestic TIV and the volume the carmakers
export.
StarBiz: In your results announcement,
why did you say your sales volume may be reduced
in Malaysia this year?
Rameli: We are just being
cautious over the new car policy that will be announced
in June. It could lead to more imports of completely
built-up cars.
StarBiz: Who is your biggest customer
in Malaysia?
Rameli: It's Perodua.
We're a Tier-One supplier to them. We started supplying
doors for the Kelisa at the end of last year. We'll
have the full (financial) impact of that this year.
Perodua's Asean export model will kick in,
in May. This is Daihatsu's only plant in the Asean
area. (Daihatsu is Perodua's manufacturing partner).
StarBiz: Does your technical partnership
with Katayama Kogyo prevent you from expanding into
certain markets?
Rameli: We can expand anywhere
in Asia-Pacific, outside Japan and South Korea.
Katayama concentrates in North America. Europe
is open to both of us. We negotiated this on day
one. It's important to do that. Otherwise, it can
become very complicated.
StarBiz: Did Ingress get its start
from Proton or Perodua?
Rameli: We started with Proton
in 1993. After three years, we went to Thailand.
We prepared for (the opening of) Afta (Asean Free
Trade Area). We didn't know Afta would be deferred,
so we were early in going to Thailand.
StarBiz: How are the operations in
Indonesia?
Rameli: We have orders from Suzuki
and Mitsubishi. The contracts are initially small
but that'll increase. Suzuki has made Indonesia
its manufacuring centre for the Asean region. It
will also be exporting cars from there to Malaysia.
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