small_geely.jpgGeely Automobile Holdings Ltd is once again rethinking it’s RM100 million investment plans in Malaysia. It was not very happy with the new National Automotive Policy which stated that any new foreign car manufacturers who want to enter the Malaysian market would have to export 80% of it’s production here in Malaysia. It used to be 30:70.

It was also not very happy with the government ruling that no new manufacturing licenses will be granted until overcapacity problems are addressed. I’ll leave you to think of your own definition of what overcapacity. And there’s always that case-by-case basis clause. :)

small_geely_2.jpgIf Geely does not invest in an assembly plant, Geely’s local partner IGC Corp will still continue assembling the right-hand drive Geely cars at Oriental Assembly in Johor.

If I was Cam Soh, I would be pretty frustrated by now. First his Chery A160 vehicles encounter AP problems, now there’s a problem with his venture into assembling Geely vehicles.

It makes me wonder, does the government really intend to develop Malaysia into a regional automotive hub is it just hot air when the policies it formulates do not look very encouraging. But then again, the ‘case by case’ clause is a very good wildcard.

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Geely CK1 Freedom Cruiser
Geely Freedom Cruiser assembled in Malaysia