I have blogged previously on Thailand’s refusal to lower duties for incoming Malaysian vehicles down to Common Effective Preferential Tariff (CEPT) tax rates of 5%. As the region’s largest CBU vehicle producer, Thailand stands to lose out because of Malaysia’s new National Automotive Policy which imposes Non-Tariff Barriers to cars coming into the country, such as those from Thailand.
The NAP was formulated to have a balance between opening up the market according to AFTA requirements, as well as protect Proton and Perodua. Examples of Non-Tariff Barriers imposed by our NAP are Approved Permits and quotas – for example there is a limit of a maximum of 20,000 cars coming in yearly from Thailand. Approved Permits are capped at a maximum of 10% of industry volume. There is also racial-based barriers requiring the importer of CBU vehicles to be 70% owned by Bumiputras or by the Malaysian government (through Khazanah?). Also, duties are calculated from a price list published by the Customs, instead of the General Agreement on Tariffs and Trade valuation method.
The Philippines has joined Thailand and Indonesia in opposing Malaysia’s Non-Tariff Barriers. Ford cars in Malaysia like the Ford Focus are CBU imports from the Philippines. The members of the ASEAN Free Trade Area Council will meet at the upcoming ASEAN Economic Ministers (AEM) meeting on Tuesday, August 21 2006. The CEPT 5% rate for Malaysia will be one of the issues discussed at the meeting.
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Thailand: “Malaysia non-compliant under AFTA
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This is just the begining of the end of NAP. Today it is by our neighbours. In future more to come including from US, Japan, EU, China, India, etc on this crappy NAP! Even the rpice list also prepared by Custom Department, in what way custom dept suddenly so good in car biz? So interested on auto prices? Must be "ada udang di sebalik batu".
Of course G can control "internal environment" on everything and anything about Bolehland autos and consumers become P1's captured market at the NAP's mercy. On "external environment", this crappy piece of NAP legislation being scrutinize by any countries entered into FTA agreement with our G! It is time to wake up for G/P1, otherwise P1 can "sleep forever"!
ORANG KAMPONG" policy
what can WE SAY!
does this mean that car prices will come down even more??
*Yawnnnnnnnn*
there is only one say in this matter….STOP PROTECTING PROTON/PERODUA or anything under d sky classified as 'malaysian national cars'…..it has made them dangerously complacent for decades…..for heaven's sake, please remove the protection, we've suffered enough buying overpriced cars for years….
infinity – Look at the "external environment" like international trade perspective, in the event this crappy NAP still implemented as it is today, then it will have "adverse effects" to the balance of payment of our country. Among contributory factors are: –
1. For countries enter into FTA, if G imposed non-tariff barrier to another country under NAP for auto sector, then those countries affected by this barrier (Thai, Philipine and Indon) have the right to impose or take similar action against any type of our goods and services that export to their countries.
2. The long term repercussion to our export are our goods and services become not competitive in oversea market if similar trade barrier measure being taken by the respective countries in which their auto products export to our countries subjected to NAP.
3. Look at the above scenario, remember that our P1 product can't sale oversea and never competitive even not subject to trade barrier. The long term "nett" effect of this crappy NAP is non of our goods and services will be competitive assume other countries take counter measure on it. In other word, P1 and other products can't tilt the balance of payment in favour of our country if it is not competitive – lead to trade deficit.
Therefore, our G are very well aware on this matter and because can't afford to "take care of one tree, but loss one jungle". Our G already delayed the implementation of AFTA on our auto sector from 2002 to 2005 and now with NAP's non trade barrier, further delay will have bad reputation to our G as on its commitment toward FTA! Also bad to other goods and services which our country exporting to that particular countries if they take counter measure.
Talk about price coming down, definitely it will happen (very soon) as there are no more "excuse" like want to protect P1 which can be use to extend the trade barrier!
Of course there is economic cost to the auto sector, but for long term it is better for consumer, attract FDI and long term sustainable growth for auto sector.
u cant jus say STOP PROTECTING NATIONAL CARS…its much more complicated than that…bcos thy r huge industries in their own right..n employ thousands of people and generate billions of ringgit to the economy…to jus STOP PROTECTING jus bcos u say saw..its not reasoable n not so smart ting to do , it doesnt work that way…philipines and thailand DONT HAVE national cars so thy are wiling to obey AFTA rules on the spot….thy are jus assembelers…in every country there r national interests..if its not cars thn could be energy or water or anyting else..it jus hapens that here is our national cars…n believe me..this is wat the AFTA wants..which done by WTO rules..that countries should not have national brands…but to purchase foriegn brands…in order to kill off local compitition …and be monopolised by foriegn makes…its jus another way to look at it…
Rakyat have given P1 and P2 enough time to grow up themselves. They are over twenty years old, and adult already. Protection should be lifted, don't you agree? Then how long are we going to wait for them to be independent? Rakyat have paid enough taxes for them to grow, but they failed. No more paying taxes to support these incompetent P1 and P2. And why not Langkawi and Labuan helping to support them??? and these two places can run free….why?? Is this fair to all rakyat???
e-nabilll said, "that countries should not have national brands…but to purchase foriegn brands…in order to kill off local competition …and be monopolised by foriegn makes…its jus another way to look at it… "
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Are you sure and aware of what you say? It is glaring crystal clear that you are self contradictory even in one statement. In auto sector, what you mean by should not have national brands …… and later continue with "purchase foreign brands", this brands like Toyota, Honda, Mits, Suzuki, Nissan, etc is a national brand to Japanese! Chevy, GM, Ford, Mustang, etc are national brand to US! Mercs, BMW, VW, Audi, etc is national brand to German. So what you try to say? So WTO and other FTA also have to kill all this brands by virtue of national brands and at the end there is no car manufacturer in this world? Any logic?
If cannot compete and survive in this market, then close shop, simple as that in free market economy.
e-nabilll said, "u cant jus say STOP PROTECTING NATIONAL CARS…its much more complicated than that…"
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So P1 is "national icon"? If Angkatan Tentera Malaysia is sacred national institution, they will take care of securiity, welfare and protect the rakyat in the event of war. If same principle apply, P1 as "national car" should not ask rakyat for protection, but should the other way round – P1 protect the rakyat. Do P1 patriotic and protect rakyat? If so then STOP sucking RM from Malaysia. Sales "cheap-cheap" to rakyat, then export to Japs, US, Europe, China, India, Africa, etc and bring back foreign currencies to enrich the rakyat!
very pitiful for proton. cant even succeed in a protected market. it has to go. dont pull down the whole country. yes it is a big industry. alot of people depends on it. but one thing is already sure. proton will never succeed. even if everyone in msia bought proton it will never be able to penetrate the market of other places….simply because after GM there is toyota lined up…after toyota after toyota i duno who there is….fiat, ford, hyundai and im sure china will problably price proton out of the market before they overtake proton in quality and price and performance. proton cannot support the whole country and make msia prosperous. as if the whole country would be successful just because of proton. 2nd thing for sure is that proton will pull the whole country down if it doesnt do good. you need to cut it off now and transfer vendors and the proton plants into assemblers for other makes. the VW deal was a good idea. we could have benefit from vw cars with lotus handling. maybe VW got sick of having the msia gman put 70% bumi rule onto everything they do if the partnership was formed.
see, Malaysia don't respect the spirit of ASEAN!!!
govt should abolish tax & give Proton/Perodua RM 5b to develop car.
and if they can survive.. dont blame malaysian..
what a loser govt..
We do not have the economic of scale in this industry. Ask ourself, does Malaysia have the right skill labour? Does Malaysia labour working attitude and will to learn like the Korean? Market is not a stopper for our success, our people is the key factor to success of this industry. Korea shows that with relatively some population it succeed with thier heavy industry. The Finnish capture the major share market in handphone.
The government should know pretty well that by imposing non-tariff barrier would have reciprocal effect from other Asean countries. If we wanted to protect our car industry so badly, why is Malaysia talking about Afta? After more than 20 years in car industry, if we still can't succeed, it is much better to cut lose now than falling deeper. The rational on Agusta should also apply on Proton itself. The problem of our parts suppliers could eventually be solve by switching to supplying parts for bigger foreign players.
In addition, Government should seriously rethink thier education policy, and stop the habit of imposing quota in almost all thier policies for the sake of it. We celebrate Merdeka day and proudly call ourself Malaysian when ever we are. If our government value us and treat us as thier anak Malaysia, lets rethink of your policies and joint the strenght of all Malaysian to face the foreign challenges. Like Dr. M has mention in the past, running a country is like running a corporation, it is a very complex, thus should get only the best people regardless the racise.
Good work Phil n Indon… joining Thai.. lets see wat Rafidah do after this… AFTA is just crap for Malaysian G. G dont even care AFTA's other member's feelings. Now protect protect till demolish Proton n Perodua… haha… crap… now NAP is crap… All bumi politician's crap… for their own pocket full full… darn…
External FOrces is coming….
NAP face ur fate….
u will survive o not….. depending on the G…
anyways, i hope it will die… then it's my time to buy a new car…
Horey!
thailand,indonesia and filipines dun had national cars?but they had foreign joint venture customize local cars,which are smart move,at least they dun had to compensate their auto industries like we did for proton,in new era nowadays,all international big company are mergeing with one another to reduce R and D,competative and borderless,last negotiation with VW failed,our proton stand alone facing the other auto giant,without encouraging oversea sales,just our humble malasia monopoly,can never sustain the company growth,hence t hey sell cars to us expensively,no benefits for malaysian consumer to had a so call malaysian cars if we are not benefiting from it,closing our door to these 3 country with bigger population then our 25 millon tiny nation will get their door close to proton too,feel very funny when you dun see proton cars popularise in asian neiughbors but so call uk,australia,turkey market,they try to sell,my suggestion to proton is like perodua,sell 51% to VW and see the wonders these giant can do for you,just look at SKODA,ex communist czako auto buider,theirs VW expertise cars are every where selling at cheaper yet quality subsitute of VW range of cars,like i say b4,is not shamful to admit we just do not had enough knowhow to survive in international auto enviroments,look at china and india b4 they opens their doors to foreign,their humber rakyat driving antiq new cars,do we want that to happens to us in malaysia,where the whole world closing their door on us,we got no choice but keep on driving new iswara for another 50 years,we,dare to go into auto building in 1985,must dare to change,if we dare not failed!holding on to something we all know not capable,must as well joint hand with expert and make profit out of it,any newly gratuate marketing students know this fact but not our proton PPL.
my dream about proton,malaysia sales 2006,350,000, thailand 150,000 indonesia 350,000 singapore 10,000 vietnam 50,000 pilipines 100,000 laos 5000 myanmars 15,000 kampuchia 5000 asian alones proton sold one million and thiry five thousand vehicles,and local assamble in thailand ,indonesia and phlipines.and is a possible dream just asian alone,proton no more malaysian cars but asian cars and we all shout,ASIAN BOLIH!
24,000,000 (24 Million) Rakyat from Malaysia is paying for protecting the interest/benefits of 10,000 people who work for Proton, who supply parts/material to Proton and the politician who support Proton (from behind the scenes)
How do we progress to Wawasan 2020 ? :)
i think this is a good test to see whether the government/or proton puts the country ahead of the priority of filling thier own pockets. however there have been many similar cases in the past where thailand has complained and the gman has done nothing. expect to see the same here. watever the outcome, is that proton will never be able to sell in big numbers to indo or fillipines or thailand or the world. i mean they could sell them proton cars but i doubt any of them would want to buy it since thier own countries already producing cars of a better brand. with the current nap….proton shouldnt even think of exporting to dealerships there….let alone try to make sales.
It is already late with all the investments being set in thai/indo/filli and they are set for the next 10-20 years to produce cars for the world. keep in mind that that investment should have been in msia instead of the other SEA countries.
the merger is the way out to salvage something before it even gets more worse. esp with china on the tail. and with toyota and the koreans set for a huge slice of the world market for many years to come. time to cut proton lose and let the country get on with rebuilding on other areas to catch up with singapore and thailand before everything is lost to china.
Joe Ooi ..
im not contradicting myself on my statememnt..im nt sure if u read thoroughly or jus make ur own conclusion..im talking on our prospective…i dont give a damn if ford,Gm are US companies or MERC BMW are german brands..thy r foriegn brands to MALAYSIANS…and Foriegn Brand to THIRD WORLD COUNTRIES…this is how we r dominated..wen i say WE i mean by THIRD WORD COUNTRIES….the WTO is Written NOT by African Countries or Somalia..thy re rules made by the G8..any of the brands u mentioned above NOT made by a G8 Country?? its about Economic SuperPowers against us..us who r a third world country…maybe if u think slighly broadly..u wil understand my point…otherwise….
Like most malaysian, I have my own share of dissapointment over Proton cars, but I don't see that the government will stop protecting it. The present government though has said a lot about lifting the protection on Proton but how much can be trusted from the mouth of politicians? I remember reading from the news two weeks ago in an open interview with PM Badawi on TV3, he said that he will not let Proton fail. I have copy and paste the question and answer from the star newspaper. See how you guys out there interpret whether Proton is going to loss any protection from government.
Q: At the Umno AGM (Annual General Meeting) last year, the party’s sentiments was on Proton. Today, some say it no longer receives attention under the Pak Lah era. What is your comment?
A: This project is getting the attention it needs, as this is a national project and the pride of the nation. I will not allow Proton to tersungkur (fail). I will do everything in my power to help Proton and I know Proton is a national company.
Proton has many vendors. If Proton is ‘ill’, it will directly affect many vendors. I will make sure that Proton does not fold.
Malaysian style is anti-meritocracy…..People/things with better condition they oppose and 'assist' the weaker one……The Fittest will not survive right here though.
as if the only way to compete with superpowers/western world is to pull the whole country down. you want to compete with foreign powers you start practicing merotocracy like fookeatmin1989 said. you start attracting talent/retain talent. you make people want to live and invest in msia. not the other way around to save proton.
the time has come. Competition is GOOD. P1 hates competition. Because they practice Malaysian way of workng things out
-nabilll said, "Joe Ooi ..im not contradicting myself on my statememnt..im nt sure if u read thoroughly or jus make ur own conclusion..im talking on our prospective…"
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I try to interprete strictly from what you write. Maybe my interpretation is not what you mean! Or your actual meaning is not as what you write. Anyway, talk about WTO, it is related to international trades and balance of payments which also concern International Monetary Fund (IMF). Look at how you describe about this FTA thingy, I strongly believe you don't have indept knowledge on these apsect. For me, I am also not in the position to describe in details, so perhaps the WTO and IMF website give you a better picture.
http://www.wto.org/ http://www.imf.org/
or
http://en.wikipedia.org/wiki/World_Trade_Organiza… http://en.wikipedia.org/wiki/International_Moneta…
But one thing I know is the WTO/IMF staffs come from all member countries and they have NO allegiance to any government, except civil servant to these world body.
I am in the opinion that your statement does not reflected truely on AFTA or WTO because "national car" categorisation is "EXCLUSIVELY" belong to crap NAP, inclusive CBU, CKD, AP, local content, etc, etc. AFTA/WTO categorisation are: – (1) Goods and services. (2) Sectorisation/segment like say agriculture, textile, automotive, etc.
So when come to automotive, brands is biz jargon and "non existence event" for AFTA/WTO but limited to type of car, bus, truck, etc. When come to car, yes it is local or imported! So all FTA never have any ulterior motive of killing any brands as claimed by you. This world body mainly promote international trades to benefits member state, extend monetary assistant when balance of payment is in deficit and/or facing economic/financial crisis (devaluation of currency), give advise on monetary/fiscal policy, or to dismantle unnecessary protective trade barrier (like crap NAP) which in long term dentrimental to economic growth. Other may include to settle trades dispute among member states.
e-nabilll….
All AFTA/WTO is related to fair trades on all sector of economy like agriculture, textile, auto, etc. All FTA limited to this sector only. Brands is biz jargon and it is "non existence" or not mentioned in any FTA. So to accuse AFTA/WTO kill certain brand as mentioned by you is not arise!
this is my 1st time dropping in my comments for long long times..
As a malaysian who live abroad…all malaysian abroad wish our country to progess… also.. we support our national products from foods to car to other electronic items… coz some of them really better quality then what i saw overseas..
back to NAF.. i dont not follow much about this.. coz i gave up…
i really wish.. our Government really see BIG PICTURE.. rather then.. focus to take care certain groups of BIG FAT LAZY PPL….
these groups dont help our cuntry to growa also 21st centuries is about taking advantage to get more investor into our country…
once malaysian got more opportunity.. then we can improved our quality of lifes.. hence,, we dont really need our G to protect here n there.. we can survive….
i met many very sucessful malaysian abroad… most of them still feel… malaysia is a good place to settle down but.. certain ppl mind set need to be changed…
Joe Ooi said,
August 20, 2006 @ 2:22 am
So P1 is “national iconâ€? If Angkatan Tentera Malaysia is sacred national institution, they will take care of securiity, welfare and protect the rakyat in the event of war. If same principle apply, P1 as “national car†should not ask rakyat for protection, but should the other way round – P1 protect the rakyat.
Agree with you, if ATM protect the nation, Proton kill off "rakyat"..FOR 20 years ++…OMG..even the Oldman have somewhat admitted PROTON is a failure.why other MSIAN still want to buy Proton? why why why?it is your money, come on make a wise choice..use your brain that god gave to you :-)no more need to open door to pay toll or collect parking tickets.
Malaysia = Jaguh Kampung
The problem with Malaysia now is that we are governed by a bunch of incompetent and corrupt politicians.
This is what one would expect from a country where protectionism is a norm…way of life….can see the homology
between P1 and that particular race ? Both need protection and priviledge and never never learn to enhance
and improve themselves to compete on an equal footing with others. Can't imagine the economy future of this
country in near future if the government don't have a paradigm and mentality shift…
e-nabill – I agree with u, it's not that easy to just stop protecting our national cars. Nvtless, proton has contributed many to our country's growth..
joe ooi – u sounded like a singaporean trying to take over m'sia…or more like a pro israel @ US guy..
hehe..
on one hand i wait for this moment, let asian to put pressure on our G. on the other hand i don't hope this happened. it means proton will dying soon. not that i love proton, but thinking of G will continue support proton and the money is from us…… proton die means we will force to jump to the lake together…..
These bunch of incompetent issues will not end as our Univeristy system which is the 'foundation' of our nation doesn't pratice meritocracy…..It will continue generation and generation endlessly….
And of course,the ego of the goverment so called 'national pride' like don't want to give a stake to VW in proton will not benefit us. If we're that capable in terms of technology,why Proton can't sell abroad? When a foreign partner with such as VW trying to turn around proton they Oppose.
So Egoistic…finally makan diri…
Man….I started to feel that the BN goverment got too much majority in parliament and started to simply make policy….
fookeatmin1989: " Man….I started to feel that the BN goverment got too much majority in parliament and started to simply make policy…. "
Now only you're starting to feel it ?! Whoa, where have you been living my fren. But its a good start anyway. Election's next year, do ur thang!
foreverunited said, "joe ooi – u sounded like a singaporean trying to take over m’sia…or more like a pro israel @ US guy..hehe.."
Totally and strongly disagree with you. If what you argue hold true, who signed the FTA? Definitely is not me lol….. Anyway, you make wild and baseless alllegation, the onus is on you to prove it! Kindly prove it if you are a man! Now give you the opportunity to argue your point, failing to prove it within 24 hours, it is at my liberty to lambast you as I see it fit which may include give you "long-air-noxious-gas"! Prove what you said is right!
it's time for me to trade in my waja for a brand new civic.
Joe Ooi said – Anyway, you make wild and baseless alllegation, the onus is on you to prove it! Kindly prove it if you are a man! Now give you the opportunity to argue your point, failing to prove it within 24 hours, it is at my liberty to lambast you as I see it fit which may include give you “long-air-noxious-gasâ€! Prove what you said is right!
Pak Lah, is that you? ;)
Whatever that needs to be protected will not excel. I don't forsee Proton excelling in the future with government keeping protecting it. So if government stop protecting it, it might actually be good for Proton. Only the strong will survive in the open environment. This is just simple 'Darwanian process'. If cannot survive one, then 'tutup kedai aja la'. Waste tax payers money only.
HAHA !
NAP sux !
Anyone heard if there is another big round of "potong harga" for all cars due to slow sales and responding to AFTA complaints ?
So Bubu…. hang on to your trade :)
J said,
August 20, 2006 @ 4:35 pm
24,000,000 (24 Million) Rakyat from Malaysia is paying for protecting the interest/benefits of 10,000 people who work for Proton, who supply parts/material to Proton and the politician who support Proton (from behind the scenes)
How do we progress to Wawasan 2020 ?
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truly agree… if not im driving Mini One ady rather than Mini Kelisa
bubu said,
August 21, 2006 @ 2:10 pm
it’s time for me to trade in my waja for a brand new civic.
go for it….this kind of attitude is good…say bye2 tpo PROTON and guess what if you have kids your kids will study smarter if you drive them to school in Honda..Proton not good because it is a fail brand.
go for it….this kind of attitude is good…say bye2 tpo PROTON and guess what if you have kids your kids will study smarter if you drive them to school in Honda..Proton not good because it is a fail brand.
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i think i can do a scientific study that can actually prove this. no joke. random selection.
foreverunited said, "joe ooi – u sounded like a singaporean trying to take over m’sia…or more like a pro israel @ US guy..hehe.."
So, you sound like failed misely to respond and prove your statement! Since this accusation is from you, the burden of prove is rest on you.
1. How do you know I am Singaporean, and in what way trying to take over M'sia. It is not my burden to show my Malaysian IC or passport to prove I am Malaysian, but the onus on you to find out! Can check with registration department? If what you said is true, then can go and check with current Sing PM Lee HL, or Goh CT or Lee KY. Do they send Joe Ooi accross the causeway to take over M'sia?.
2. Pro Israel @ US guy? AFTA acronym for ASEAN Free Trade Agreement which limited to Asean country only, or Japan Malaysian FTA is between M'sia and Japan only. Does these FTAs have anything to do with Israel or pro US? You also can contact Israel Prime Minister Ehud Olmert to check whether Joe Ooi is pro Israel? Or check with US president, George W Bush whether Joe Ooi is US guy. OK do you a favor, give you White House email: http://www.whitehouse.gov/. The rest you have to find your self.
3. You also can contact our TDM on AFTA as it is sealed during his era, and AAB on JM FTA which is under his tulterage, Both through MITI, then check with our Iron lady and ask them this question. Do Joe Ooi have anything to do with AFTA or JM FTA?
Go and prove your statement but you failed. How utterly ridiculous you are by coming up with inflammatory and defamatory wildest accusation without just cause and excuse. The only thing I want to sum up about your statement is you are "THE GREATEST LIAR ON PAUL TAN BLOG".
b4 proton replaced mahalee post,i actually got this crazy idea to suggest to our PM,to consider one and only candidate i feel capable but must give him a free hand to rescue and buildup proton,that is ,TONY FERNANDEZ,of air asia.
tu lah,locally in bolehlah land the G can do any damn thing they want…..because we bolehlah people so compliant…..
so now, kena bantai by asean members….
our country has gone to the dogs….literally.