Modenas CT115

Modenas, otherwise known as DRB-Hicom’s Motosikal Dan Enjin Nasional (National Motorcycle and Engine) division has entered into a recurrent related party transactions (RRPT) with Kawasaki Heavy Industries of Japan, worth RM79.98 million.

As reported by Bernama, DRB-Hicom said the RRPT includes the provision of technical support, payment of royalties and supply of completely-knocked-down components for motorcycles by Kawasaki to Modenas. Concurrently, Modenas will also supply motorcycle components to Kawasaki.

In a filing with Bursa Malaysia, DRB-Hicom reported that the RRPT is necessary for day-to-day operations, and is in the normal course of business for Modenas. “The RRPT is entered into at arm’s length basis and on normal commercial terms which are not more favourable to the related party than those generally available to the public,” as detailed in the filing.