Kuala Lumpur, February 02, 2001:
Merimen Online to Expand Auto Parts Portal

Merimen Holdings Sdn Bhd is banking on its auto parts portal, Merimen Online, to tap into the automotive collision-repair industry. According to Merimen's executive director and chief technology officer Isaac Chong, the market potential of the collision-repair industry in Singapore is worth US$250million while in China and Taiwan the market potential is valued at US$2 billion and US$1.5 billion in Australia.

The automotive service industry globally is estimated to be worth US$700 billion.

"We are currently in discussions with local partners to identify the gaps and customize our solutions for the local markets. We are also looking for partners who can help us penetrate the South Korean and Japan market," said Isaac.

In Singapore, Merimen is negotiating with the second largest general insurer to adopt Merimen Online while in Australia, Merimen is in the process of identifying a suitable local information technology partner. Both are expected to operate by the third quarter of the year, according to Isaac.

"In Taiwan and China, we are currently working out joint-venture details with a local conglomerate that has a sizable auto parts production in China." "We are trying to raise RM5 million (US$1.3 million) in VC funding this year for our expansion to establish a local presence in the countries that we target to penetrate,"

The funds will be used to enhance Merimen Online's infrastructure which cost the company an investment of RM500,000 (US$132,000).

Merimen is working with i2 Technology to install the latter's marketplace and supply chain management software.

Chong added that Merimen would be looking for another RM5 million (US$1.3 million) at the end of next year for the second round of financing.

The company has signed up 180 of the 700 General Insurance Association of Malaysia (PIAM) approved repairers and 25 of the 40 loss adjusting firms involved in motor claims. The company is partnering with Motordata Research Consortium to support PIAM and Bank Negara Malaysia to create a more transparent environment for motor claims.

Mermen is also ne of the 10 winners of Phase one of the Venture 2001 competition jointly organized by Mesdaq Berhad, McKinsey & Company Malaysia and the Malaysian Institute of Management.

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