Indonesia set to be No 1 automotive market in ASEAN

Indonesia set to be No 1 automotive market in ASEAN

Thailand is likely to cede its position as the top automotive market in ASEAN this year, primarily as a result of the massive flooding that occured a few months back. Though the numbers aren’t completely in, it is set to fall behind Indonesia in terms of overall numbers for 2011.

Up to September, the Kingdom was still in top spot, but sales volume dropped by half in October compared to the month before, and the slump continued in November. Reports estimate that the full-year sales volume is expected to fall short of the 800,000 or so units shipped in 2010.

Meanwhile, new-vehicle sales in the first 11 months of this year in Indonesia climbed by 17%, to 813,856 units, a figure that has already surpasssed the previous record of 760,000 from 2010. As it goes, the annual total is on pace to hit 870,000 units, the reports add.

And it looks set to cement that position – earlier this month, the country’s industry minister projected that both sales and production will exceed a million units by 2013. In anticipation of this, Japanese automakers – which already hold a combined market share of more than 90% in the market – are boosting production and their parts suppliers are ramping up investment.

Indonesia is hoping to become home to Japanese car factories by promoting the nation as an alternative to flood-ravaged Thailand, the country’s Trade Minister Gita Wirjawan said in a recent interview. The country has already contacted a multitude of Japanese firms, and “has told them that we are very much interested in receiving investment,” according to Gita.

It isn’t just the Japanese that are making their way in – General Motors has decided to invest US$150 million to construct a new plant, and BMW recently started local production of one of its luxury sedan models. The reports add that despite the effect of the European debt crisis, consumption is expected to remain robust in Indonesia next year, aided by interest rate cuts.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Where Malaysia stand…we have qualified workforce, better, stable and condusive environment, “stable” economic growth. How come all these automotive giants (Europeans, Korean and Japanese including GM) not interested to invest in our home soil. What’s wrong with our automotive policy? Over protected local player? Not enough incentive?

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    • tiadaid on Dec 27, 2011 at 1:26 pm

      Even if Proton/Perodua didn’t exist, and everything else remains the same the end result remains the same – because our labour isn’t cheap enough! It’s a given.

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      • littlefire on Dec 27, 2011 at 1:52 pm

        Labour is just a stupid reason, want to know more.. Just ask those manufacturer why dont want to come here?

        30% bumi share, “kickbacks” & NAP policies? Even fuel quality also cannot match Thailand, so how they want to bring in those better engine spec cars to us?

        If the market is fair as open market, i believe a lot will come here..

        Have to thanks our beloved G NAP policies to over protect P1& P2..

        Even now a lot of investor are asking P1 to sell Lotus, due to milking our “money” for so long due to mass losses…

        http://www.themalaysianinsider.com/business/article/proton-better-off-without-lotus-say-investors/

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        • MoFaz on Dec 27, 2011 at 2:58 pm

          the last time i check, no more 30% bumi share. but there is still certain percentage need to be owned by Malaysian.. for example, Berjaya-Mazda or Bermaz.
          but… Bermaz need 30% bumi share if they want to be listed in Bursa Malaysia. kind of similar to property or housing market, they need to sell that 30% to bumiputra in various ways, but if the shares remain unsubscribed in the end, they can still get listed in Bursa Malaysia.
          fuel quality? even if Thai and SG has better fuel quality, Toyota & Honda still give the old engines and gearbox for their cars in Thai and SG, similar engine to cars in Malaysia. why is that?
          yes Lotus is a loss-making company for now, but if they really could turn-around by 2014, it will be good for Proton and Proton could sell Lotus that time, at higher price. it’s up to the shareholders to decide.

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          • fairgo on Dec 28, 2011 at 1:20 am

            for proton to progress, we must do away with emotive concepts such:
            – koreans are nationalistic, malaysians are not,
            – lotus will be OK by 2014 just give it one more chance
            – p1 (& p2) are the pride and honour of malaysia

            instead, it might be more useful and productive to focus on:
            – what are p1’s key strengths?
            – what are p1’s key weaknesses?
            – how to capitalize on strengths and minimize weaknesses?

            if we go beyond manipulative nationalism, shortcuts, false pride and the founder’s iron hold, p1 might just have a better future than what it faces now.

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          • Alex259 on Dec 28, 2011 at 9:15 am

            So sad to say our country’s leader is over enjoying the wealth.Example, when Proton is selling, the CEO never plan to invest further in R&D,he only know how to travel by his private helicopter to play golf, that how and what our leader is.

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          • I just dont understand la with u all….what cheap labor or proton or corruption or nap to do with auto market….obviously until end of time indonesia is and will be biggest SEA market for auto…their people are not that poor as compare to 10 yrs ago…their auto market is enormous after china n us..they sell more than 600-700k vehicles but rather to small for big market of almost 300mln soul…where do we stand obviously u all need to produce more soul…jakarta alone already equivalent to malaysia…well the topic says auto market not auto production

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        • HirumaKecil on Dec 27, 2011 at 4:00 pm

          So ignorant.. Labor is not just a reason…. It is very important factor.. Production cost there very cheap la… And we can see how their people live their life.. Yes la their economy are growing but still we live a better life than Indonesia people… u feel happy if u only get 1/3 from u current salary? The only factor why we with only 28m people in Malaysia buy more new car every year compare to Indonesia with their 300m people…… If u want Proton sell Lotus, there are only 1 word from me to u…STUPID… Malaysian people don’t have money to buy car? Bullshit la u api kecik.. Bersepah Mercs & Bimmer new on the road.. If u go to used car shop also u can see so many new Branded car oredi there… Many 3yr old Mercs,2yr old Bimmer, last year Camry and Accord ,Vios and Civic xyah cakap la.. memang bersepah… U see??? New car pon oredi kena jual lor… Don’t have money why change car every 3-5 year???? And then u can see old model 0km mileage car price drop se drop dropnyer when new model launched… U think they sell ka if rugi?? No la??? U think they stupid ka prodice so many car before launched new model till they will rugi?? No la.. This big company run by brilliant people with brilliant DSS system.. They can predict their sales even for 5-10 year… And u think if the car is old model they dint need to pay tax ka? They sell the car very expensive because we have money and we dint mind to spend…. Ya la many people here in paultan bising but people at the showroom x bising… u dont like Exora & Alza? Dont buy la, nobody force u.. U can buy G.Livina and Avanza.. Same price ma??? How much diff between Myvi 1.5 and Swift? Ey if Proton and Perodua not exist then car like Vios will be more expensive la coz they monopolize the market… Livina and Avanza also will be more expensive….

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          • littlefire on Dec 29, 2011 at 8:45 am

            Err.. How u assume that without Proton & Perodua exists that car like Vios, Livina & Avanza will be more expensive?

            If not mistaken only after Proton is establish, that other imported cars are tax & AP so crazy so that no competition againts Proton/Perodua.. If the market is open, more cars can come in and sell their cars and competition will even better.. You can see it in Brunei, Arab Saudi (Compare to other oil producing country also) that their car is cheap dirt.. But why ours 1 so expensive?

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        • Suparman on Dec 27, 2011 at 4:41 pm

          I have to agree with you.
          Everybody knows that Indonesia is much better than Malaysia.
          Our government is better than Malaysian too.
          I’m so grateful that I’m an Indonesian.
          Pity Malaysians :-p

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          • Abidal on Dec 27, 2011 at 11:34 pm

            ya,, better in corruption.. champion lol

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          • Alex259 on Dec 28, 2011 at 9:18 am

            But some blinder still protect them,”they said PM is like FATHER to them” so dead our country, Malaysia is…..sad

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          • Tazio on Dec 28, 2011 at 9:23 am

            ‘Everybody knows that Indonesia is much better than Malaysia’..haha…u made my day, son.

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          • kuzing on Dec 28, 2011 at 7:07 pm

            Indonesia is much better than Malaysia, that’s a fact

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        • yippi33 on Dec 27, 2011 at 10:48 pm

          i dont want to comment on why the investors are choosing thai or indonesia over msia as most of you guys hv already did..

          what i see is that since msia is no more appealing in the eye of investors in the manufacturing sector, what msia should go for is on the service based economy(im no economist so pardon the wrong jargon used here ).. this is the only way that msia can transform to high income society like Singapore..they are the leaders in this service economy in our region..what we should sell is not manpower but expertise..

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        • we u all need read other country blog or news….cheap labor might be main reason foreign company setup there..that what thais people write in their blog n newspaper…there some talk to implement basic wages for thais worker

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      • Expatriate VN on Dec 27, 2011 at 1:54 pm

        Talk about labour not cheap is all bullshit, why Honda, Toyota, Hyundai, BMW, etc open factories in USA if the main reason is expensive labour. Why Vietnam and Myanmar don’t attracted these car manufacturers since their labour is way lower than Thai and Indon? Something fishy ????? ………..

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        • MoFaz on Dec 27, 2011 at 2:35 pm

          don’t simply assume. look at the country policy first. you can’t just simply bring your car from Japan or Korea. for example, USA require mass-production cars to be manufactured or built there. their reason is simple, if you’re going to sell hundreds of thousands cars in USA, you must give something back to the country, for example, jobs. they sell more than 12mil cars a year, how many jobs available with such a huge industries?
          in China, they require local partner holding at least 51% of the shares. BMW, Audi, and many other car manufacturers have to get a partner to sell cars in China. Same case with Proton-Youngman.
          yes, Vietnam and Myanmar could offer lower labour cost, but you must also consider the purchasing power of the people in those countries. the major market is domestic, then only the export market within Asean. there’s a lot more new millionaires in Indonesia compared to Malaysia last year.

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          • RON97 on Dec 27, 2011 at 4:43 pm

            wow! MoFaz= auto wikipedia (b. gates wannabe).
            Try harder, bro..

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          • Stephen on Dec 28, 2011 at 5:24 pm

            not only that MoFAZ.

            If you look into Japan and Korea car maker at USA. Who say they didn’t try to cut the corner to go for cheap labor after being limited by the law.

            They go to states that don’t have relation to those labor union at Detroit (that eat the profit of GM/ Ford/ Chrysler)….like Alabama/ Louisiana

            Just look at BMW, their X series SUV are mostly in South Carolina. It was there for so many years.

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    • Expatriate VN on Dec 27, 2011 at 1:57 pm

      The main culprits is the protective NAP policy. Only know how to protect vendor cronies and AP King. If foreign company want to set up manufacturing plant, there are condition that they produce car above 2.0L, or if 1.0L to 1.8L, then at least 80% must export This is the most ridiculous condition impose on foreign “green mountain”, in order to protect one local “dead-wood”.

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      • sawi cool on Dec 27, 2011 at 3:44 pm

        Knowing Indonesia or Thailand, i doubt if they don’t have the same problems.

        It’s better to see from bigger picture – the purchasing power, the labour cost, the prospect, etc.

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      • HirumaKecil on Dec 27, 2011 at 9:07 pm

        U so proud with thailand.. Then 1 question for u… What happen to the old factory and its worker after manufacturer move to Indonesia??? At least P1 and P2 will not lompat2 country.. The vendor and the so call cronies also will stay here… Nobody lost job, no sudden effect to our economy…

        U want malaysia to be big player in this industry like korea and japan but u don’t want the protective policy… This is not anime or fairytail.. This is real world.. In the real world, this is how we live our life…

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      • HirumaKecil on Dec 27, 2011 at 9:09 pm

        *fairytale.. Damnnn typo.. So susah nak type ngan phone neh…

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    • PakAbu on Dec 27, 2011 at 2:04 pm

      It’s NOT just “cheap labour”. The potential market is also very large. Whoever gets in first, will have the biggest market share: just like VW in China and Suzuki in India.

      Every country has their own leeches and sharks and crocodiles and piranha… just depends on how much the investors can tahan with the blood suckers… to get to the real fishes in the sea. Some ocean just have too many blood suckers to make it worth while.

      :mrgreen:

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      • Alex259 on Dec 28, 2011 at 9:31 am

        Our country here got “CAR”, “COW”, “overhead bridge”, MRT”……….a lot more BLOOD SUCKER. But MACC said, we never corrupt, we just bought at higher price( so ashame of this)

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        • sadly youre right.. hahaha… and MACC is too… some of the purchases are so expensive and its not just due to ‘duit kopi’ but idiots who didn’t check up on purchase prices…. aiyo…

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    • Nissan on Dec 27, 2011 at 2:16 pm

      This question got to be answered by our Government. Their protective policy is keeping the investor away from us.

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      • Alex259 on Dec 28, 2011 at 9:36 am

        If so, so many qusetion for them to answer. Did they tell you why a “COW” family can salaried more than 200k a month?? Did they tell you why hardly you will get(even hear) the Iskandar project spread out to market or public?? And…………………. a lot more to go

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    • MoFaz on Dec 27, 2011 at 2:21 pm

      they don’t need skilled workforce, they have robots which could work day and night and doesn’t do silly mistakes. they only need CHEAP labour for parts which require human touch.
      only big countries like China, India and Indonesia with hundreds of millions population could supply cheap labour. our factory workers now get between RM800-1500, but just RM500-800 in Thai. we, Malaysians are just 27mil people, we lost the fight against Thai which has almost 70mil.. what do you think the outcome if we put Indonesia with 270mil into the scenario? how much salary are they willing to take just for job in the factories? Thai and Indonesia also has vast land area, which is another advantage factor compared to Malaysia.
      it’s also very cheap in India. but they want to tap the emerging region of Asean, that’s why it only make sense to invest in Thai or Indonesia.

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      • Expatriate VN on Dec 27, 2011 at 2:50 pm

        Labour cost is one of the factor only, For Vietnam, they have 90 million population and encourage FDI. Their factory workers salary can be as low as RM 150 per month. So why Vietnam lost to Thai despite they have more population, abundance of land for industry and located within same ASEAN region. Same also to Philipine, also with around 90 million population!

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        • MoFaz on Dec 27, 2011 at 3:12 pm

          if they have very low salary, can they buy your product? what’s the point building a car in Myanmar if only 13 out of 1000 could afford to buy a car. Indonesia has better purchasing power.
          if you build a car in VN, then export to Indonesia, even if Import Tax is 0%, you might have to pay extra for shipping, port, excise, and perhaps many other thing. Indo also has better access for export to mid-east & australia.

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          • Then again car industry only one sector in economy…..

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        • HirumaKecil on Dec 27, 2011 at 4:11 pm

          Dont be stupid la.. If u owned a company, will u open a factory there just because cheap labor.. No la.. Export cost, politic issue, environment and many more will become the factor.. In case of Malaysia vs Indonesia vs Thailand the factor are different coz other than labor cost, Thai and Indon got more land than malaysia… And for the export coz also did not give much diff since this three region are the biggest market… Cot to export car from Thai to Malaysia and Indon are cheaper than export from Vietnam… Cost from Indon also cheaper… If from Vietnam need more cost la… Malaysia ,Indonesia and Thailand geographic factor la neh.. All this three big market are located in Triangle shape… They are side by side…

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          • Expatriate VN on Dec 28, 2011 at 10:51 am

            Dude, the distant between HCM and Hanoi is 1,720 km, but the distance between KL and HCM is around 1,500 km only. so you figure out?

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          • HirumaKecil on Dec 28, 2011 at 6:21 pm

            Kamon la.. U only consider that ka? U can only figure that ka? So easy ka to do business… We talked about business here… 250km very costly la.. Then one more thing, 3 biggest market are Malaysia, Thailand and indonesia.. So u need to consider the distance for all this three region… and the other factors also.. Can u just accept the fact.. Why u still want to deny the truth… Dont be so bias la.. In every post also u will hentam Proton and Gov… The problem with u is ur mind… U oredi set there in ur mind that everything proton and gov do is wrong..

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        • LatukBandar on Dec 27, 2011 at 4:29 pm

          Many factors, and one of them is the eco system.

          Most the car eco-system is already there. therefore it makes sense to be there now. Rubber is another reason, our rubber industry is as good as gone. You can’t make cars without rubber.

          AFTA is another reason, these investor knew Malaysia won’t honor the agreement, therefore a trade war will likely happen just to protect proton. That is why it is better to build cars in a neutral free country like Thailand and Indonesia where they are reasonably good with their neighbors.

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          • Alex259 on Dec 28, 2011 at 9:28 am

            Whatever policy implied in here is to protect the INTEREST of “one group” of Bumiputra. Take AP for example, if Mahathir first intention is to help Bumiputra to establish business from AP money, why until today only 85 (of how many million) Bumi entitle from getting it??? And why NAZA can have over thousand of AP and you don’t??

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        • Salamander on Dec 27, 2011 at 5:21 pm

          You have to consider skilled manpower, infrastructure and market at Vietnam.

          Our country already evolved to service industry, why need to look back into manufacturing industry with low income margin? You surely dont want job which pay you RM 150 per month right?

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        • squall_shinoda on Dec 27, 2011 at 6:08 pm

          It is because of their lower purchasing power. How can a carmaker build cars there just to lose money because their people cannot people to buy its car?. The majority of Vietnamese can only afford to buy a motorcycle. In Ho Chi Minh City, there are more than 4 million motorcycles on the road compared to only 400,000 cars.

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          • Expatriate VN on Dec 28, 2011 at 11:03 am

            That is not a true argument, most of Vietnamese purchased shoe price in the range of RM 30 to RM 50 (maybe RM 60 to RM 120 in Malaysia for similar quality). However, now a day they produce the best quality shoe in the world like Clark, Timberland, etc. It is hardly market in Vietnam, and in regional town with populationon 200,000 to 500,000 like Nha Trang, Da Nang, Da Lat, etc, you can’t find Made in Vietnam’s Clark shop.

            So, if follow economic of location, that is as far as the production cost (land cost, labour cost, etc) is cheaper than logistic cost @ distance of production location to intended consumers, then it is commercially feasible to set up factory there. Good case is Clark shoe, formerly produce among other in Portugal for uk market, now produce near Hanoi, also partly send to uk.

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          • He his talking cars and vehicles, you are talking about shoes and clothes.. Hello brader, give me one example of a country does mass manufacturing of cars Only for Export out of that country.

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          • squall_shinoda on Jan 01, 2012 at 10:39 pm

            It is you who has not given a true argument. Not being able to own a car does not mean not being able to buy branded shoes and clothes. Plus, it doesn’t make sense at all if you use shoe purchases as a comparison for the car market.

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    • james chin on Dec 27, 2011 at 2:54 pm

      malaysia already got too many cars on the roads. let other countries become top market already. indon ke thai ke i dont care

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      • blmers on Dec 27, 2011 at 4:03 pm

        cant agree more..

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      • oomph on Dec 27, 2011 at 6:15 pm

        one time our deputy minister also offer those flood affected car manufacturer in Thailand to switch production to Malaysia….see they picked Indonesia over Malaysia. there’s gotta be something wrong that shy the manufacturers away.. and we all know what is is.

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    • M’siaxx is still cant beat the Indo,Thai and Singapore until end of the world…

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      • Abidal on Dec 27, 2011 at 11:40 pm

        yes don,, your corruption index very high,, of cos we cant beat you don..

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  • How much are we losing in Malaysia by trying to set up our own automotive brands???

    Thailand is known as the Detroit of Asia and now even Indonesia is catching up. How much longer must we lose out to other countries?

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    • Expatriate VN on Dec 27, 2011 at 2:01 pm

      The most P1 can do is talking, the former CEO TM once upon a time a go claimed Waja is “BMW of Asia”

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      • Prismo on Dec 27, 2011 at 2:22 pm

        “FORMER CEO” said that… So do u want to back live in a jungle?? bangga sgt ke kalo duit byk mengalir keluar??

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        • Prismo on Dec 28, 2011 at 11:47 am

          whoaaa…. indon cybertroops coming in here and click thumb down… pity them…

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    • MoFaz on Dec 27, 2011 at 3:23 pm

      how much we lose?? you should check also how much their money flowing to Japan. it doesn’t matter whether Thai or Indonesia become Detroit of Asean, the real winner is Japan.

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      • oomph on Dec 27, 2011 at 8:04 pm

        Anyhow we are the winner as well……..if we count from the back.

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      • @MoFaz : Agree 101%. Thailand and Indonesia are only ‘ middlemen ‘ … the real taiko is Uncle Japan and Uncle Korea. If we think the Thais and Indonesians are beating us, we’re obviously wrong cause they’re only doing what we were doing 25 years ago. That is, CBU ( and rebadging ? ). So yeah, I’d like to see Thailand and Indonesia make their own national cars. Then we’ll see who’s the best… when Uncle Japan and Uncle Korea kena earthquake or something ( March 2011 – never forget ), both Thailand and Indonesia are going to be neck deep in trouble. Mark my words.

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  • kevin lee on Dec 27, 2011 at 12:47 pm

    hello indonesia, sad our automotive industry is dying out

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  • and malaysia ? i thought so…

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  • blue-traveler on Dec 27, 2011 at 1:06 pm

    SOoooooo, where does that leaves Dr. M. vision.? “Malaysia, Auto hub in the year20XX….”

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  • albag on Dec 27, 2011 at 1:43 pm

    indon??? good luck with the earthquake haha…

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    • dont laugh at those unlucky countries..
      besides, the investors still prefer the country with natural disaster than bolehland, we should feel shame.
      it mean something hidden “policy” are even worst than earthquake…
      G really need to look at it and correct it!

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      • MoFaz on Dec 27, 2011 at 3:49 pm

        investor choose Indonesia rather than Singapore, so should Singapore feel ashamed? if you really understand the situation, you won’t feel ashamed at all.
        every country has their own policies. yes, probably some of our policies are to be blamed, but I believe not 100%.
        the truth is we can’t survive free-economy just yet. we still need to protect our economy. if you’re comparing USA which already independence for 235 years and trading with the whole world, against Malaysia which not even 60 yet… perhaps you’re making a wrong comparison. even countries with stronger economy like Japan, Korea, China and Singapore have policies to protect their own economy. you can’t simply bring Maybank into Singapore and open branches all over the island state. the number of branches are limited to protect their own bank like DBS-POSB.

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        • oomph on Dec 27, 2011 at 8:42 pm

          singapore would not care as they are not wooing car manufacturers to set up car plants in their country…so they far away from ashamed.
          but malaysia is trying to woo the same investor but they picked indonesia instead…. should we feel ashamed??

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          • MoFaz on Dec 27, 2011 at 11:24 pm

            trying to woo is just like making an offer, but the decision will definitely depend on many factors which i think Malaysia couldn’t offer or what Malaysia couldn’t accept. for example, they require thousands of cheap labour, with salary ranging from RM500-800. Malaysia can’t provide that because minimum salary now set at RM900 in Malaysia. the solution is to bring more Indonesians and Bangladeshi? no, we had enough problem with them. the easiest solution for auto-makers is to go directly to the source of cheap labour. i’ve also read that Proton has a plan to build CKD plant in Indonesia by 2016 to produce 10,000 car annually in indonesia.

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          • MoFaz = government?

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          • MoFaz on Dec 28, 2011 at 9:48 am

            no, i’m not in Proton or Gov. i work in SG.

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          • well we might lose to indonesia in auto industry not in other industry…at least we dont blackmail company who turn down offer…..remember RIM who manufacture BB…RIM choose us over indonesia

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  • Sadly those buggers in MITI are too complacent and didn’t bother to woo the Japs investors unlike their counter part in Indon… :(

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  • Cowabunga! on Dec 27, 2011 at 1:51 pm

    you all should be proud….

    we got our own national car…..that is a flip-flop, that came back to Mitsubishi rebadging…

    we got to pay 200-300% of taxes as well on stripped down version of international cars….

    we got the LOWEST petrol price in the region….

    So says the current government…Aren’t you happpppy?????….

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  • INDONESIA BOLEH !!!

    (*while sipping my hot Milo kosong – no sugar)

    Hahahaha!!!

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    • Expatriate VN on Dec 27, 2011 at 3:15 pm

      “Viet Nam Co The”!!!!!! Vietnam Boleh

      while sipping my hot tra xanh (green tea) and posted comment from Viet Nam!!!

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  • Indonesia is growing and getting richer. In the future, our sons and daughters will go to Indonesia and work as contraction labour and maids, and get bullied and slapped by the bosses and owners….Thanks to our Hopelessly Stupid Clown government..!

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    • HirumaKecil on Dec 29, 2011 at 8:08 am

      Actually the problem is to many rules to obey and process to be follow to set up a factory in Malaysia.. But its good to that we run our country by our own way.. No need to follow outsider games…. In indonesia it is very easy.. Just bribe then everything settle oredi..
      Gov also very straight.. if u cannot follow our system then go away.. even GM and VW have been rejected… BTW dun need other toyota factory… now also we have oredi and they also used Perodua factory… Vios,Avanza,&Hiace dah assamble kat Malaysia, cukup la tuh.. 2012 Camry pon assamble kat malaysia.. They dont bring Daihatsu here sebab ada Perodua… We also import Perodua car to Indonesia… Win2 situation la tu.. Perodua also dapat untung.. KOrean car also same situation… Yes we dont have Kia and Hyundai factory here but we got Naza and Inokom.. Its better that way…. We got more profit and benefit… If u say about quality, u can guarenti ka car from korean better than Naza and Inokom car… Same la… Every where also u can see the original car from korea are no better than naza and inokom car… With Naza and Inokom we got cheaper ckd car but with our brand name and we have the control of the company… Less money go to japan and korea…

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  • Unforgiven on Dec 27, 2011 at 2:15 pm

    Good luck to the next generation, be prepared to fight back!

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  • The tide is turning, indonesian is rising fast economically. Imagine in the future, our sons and daughters will have to go and work as construction labors and maids in Indonesia. They will be bullied as how some of us bully them rite now..thanks to our hopelessly idiot clown shit government…

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  • Expatriate VN on Dec 27, 2011 at 2:22 pm

    Typical Malaysian mindset are easily fool around whether it is P1/P2 or Imported cars:-

    1) Power window bad quality should not happen in the first place, but just because DSZ solved this suppose non existence problems in the first place by offering 10 year warranty, then typical blind supporters would come out in drove by syiok sendiri praise “a lot of improvement”, good job P1, etc.

    2) The Exora MPV shouldn’t be underpower like Innova in the first place, just because of latest Cam-Tak-Pro equip with CFE with high torque feature, and resolve the under power issue, then another round of “telur satu biji-riuh satu kampung” …….. from blind supporters, see later do this MPV will be top sellin gmodel in Malaysia!!!!!!

    3) When the Japs especially T introduce crap basic entry car ike Vios or MPV like Avanza, there are many out there so “proud” because it is imported and T brand, what a craps !!!!!!!!……..

    4) When the AP King selling recond Wish, Alphard, Estima, etc ,,,,, yet many buyers still bought it and perceived that they are luxury car for the rich. The true fact for open market say like Abu Dhabi (UAE), new Estima is selling at around RM 120K and used as a van for gov hospital to ferry patients only.

    5) When this P2 introduce the outdated Lagi Best Lagi Power, still there are people out there praise till kingdom come ……..

    6) The list will go on ………

    At least Indon have an open automotive policy to attract FDI in car manufactoring, and create jobs! However, there are blind supporter outthere would argue local product is to control cash outflow????

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    • squall_shinoda on Dec 27, 2011 at 6:03 pm

      The one who is easily been fooled around is you. You are not god to judge whether Proton / Perodua should go to hell or heaven. No matter how perfect a car is, there is definitely some room of improvement for that particular car. That’s why every carmaker produces their car models and study their strength and weaknesses and improve them to be better. That is what we call as learning through mistakes and failures. If a car is 100% perfect from the very own beginning, then humans will become lazy and never learn to improve that particular car. So stop playing god and stop talking a lot of shit as if everything done by Proton and Perodua is all huge sin that is unforgiveable and only deserves to stay in hell for all eternity.

      Let me answer all your stupid points that everyone already knows but yet you refuse to accept:-

      1.) When Proton first existed back in 1985, all parts came from Japan; Proton only assembled them to become Proton Saga. Slowly and steadily, local auto parts companies were spawned and they reverse-engineer those Japanese parts to make the cheaper parts Not all of them succeeded to build such a flawless part on a single try. Even machines built some well-known engineers did fail at early development stages, such as Dr. Rudolf Diesel’s early diesel engines. That’s why the local auto parts are constantly recruiting young engineering graduates to ensure their auto parts will be more durable, reliable and affordable. And when someone does better, he/she deserves the praise; only those envious idiots hate him/her.

      2.) Again, you play god by saying that Proton’s choice of using the 1.6L Campro CPS engine to power the Exora as a huge sin equivalent with murder. Do you REALLY understand the purpose of Proton building the Exora at that particular size, powered by that particular engine and priced at that particular price tag at the very first place either? Do you even care to ask Proton engineers themselves the rationale behind those? At least they work really hard to build their own model that they can be proud of, and they do deserve that pride, unlike you who only know talking a lot of bullshit and yet never capable to build your very own car by using your goddamn very own pair of hands…!!! Pathetic moron.

      3.) Even though I personally disagree with the introduction of the “basic” Toyota Vios dugong, I must admit that Toyota wants that car to be more affordable to make that model to be more accessible to more Malaysians. If you have a lot of money, then go for a more expensive model. It’s none of my business either. Even grammar also you fail and yet you think as if you are better that everyone else here.

      4.) You compare Malaysia the already-rich UAE, which is damn unjustified. UAE is a small country with small population but very rich of petroleum. Therefore, the UAE government has plenty of money to burn and doesn’t have to worry the income source to develop the country. On the other hand, Malaysia is not so rich of natural sources, to the government still need taxes to keep the economy running. Even if you compare with Singapore, Thailand and Indonesia, they do have some plus-minuses as well. If the car price is cheaper, then the petrol price and some other taxes will be skyrocketing, so there’s no difference at all.

      5.) Even though the so-called Myvi Lagi Best still uses the old engine (despite the addition of the 1.5L engine from Alza), it still deserves the praise because for the first time ever in history Perodua has finally used their own design which is totally different from Toyota Passo / Daihatsu Sirion.

      6.) You keep recycling those same points over and over, that’s why you’re running out of ideas to bash and simply put “the list goes on”. Full stop.

      Even if Malaysian market is 100% open, it doesn’t mean that those foreign carmakers will flock to Malaysia to build cars here because the automotive market here is very small and over-saturated. That’s why they opt for countries with larger market such as Thailand and Indonesia. Even if they do build cars in Malaysia, it is only for select few models at limited numbers. Another point to take note is that if too much money flowing outside, it will affect the country’s economy very badly because that particular country will be left out with less money. A very simple fact and yet you refuse to admit it. What a pathetic moron.

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      • Expatriate VN on Dec 28, 2011 at 11:27 am

        You make the most ignorant statement: –

        “That is what we call as learning through mistakes and failures. If a car is 100% perfect from the very own beginning, then humans will become lazy and never learn to improve that particular car.”

        If you feel me a stupid with bad grammar chap, then I assume you are “intelligent” a lot by go to study history (Renaissance Period circa 1400 to 1600), British Industiralisation, and learn the concept and methodology of R & D.

        In R & D methodlogy, it is not learn by own mistakes and failures, as the risk of commercial lost is too huge, apart from reputation (perhaps Proton follow this path). R & D is emphasize on learn from other people success based on written records, look for “new finding” or “improvement” compare to existing. R & D minimize failure and mistake, and try to eliminate or minimize it during design/lab/testing stage, not after let the product flooded the market then only wait for mistakes/failures feedback like what Proton do (i.e. the “notorious” power window issue).

        Look at your “failures is the mother of success” mentality, I do not need to elaborate more on the 6 points put forward by you! If you ever have the opportunity to make your presentation based on these 6 points to Donald Trump, then his reply to you is “YOU ARE FIRED”!!!!!!!!

        Afterall you are not so smart …….. perhaps ………..

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        • squall_shinoda on Jan 01, 2012 at 10:56 pm

          That is what people mean by learning through mistakes. When making an R&D, do the researchers simply use unproven new ideas? They only use them after being proven by previous researches to support those ideas. And do you even bother to know why carmakers put the fuel tank under the rear seat and not under the hood or trunk? Just as a reminder for a pure ignorant idiot like you, the decision to put the fuel tank under the rear seat was made due to the design failures of the Ford Pinto car in 1970s which has its fuel tank under the trunk, which could be easily punctured by the bumper bolts during a collision, causing fires. It is due to the lesson from the design flaw that the NHTSA made it mandatory to install the fuel tank under the rear seat instead of under the trunk.

          Another example is the GDI research by Mitsubishi in 1997. The design of the GDI engines had already been confirmed perfect by computer simulations during the R&D stage. However, in the real world, the GDI engine could not perform as well as perceived in Europe in terms of emissions due to the poorer petrol quality there at that time, with the sulphur content which can be considered high for today’s standards.

          Only if people does the same mistake over and over again that is unforgiveable; the first one is essential in order to learn a lesson. One simple question to you – is it possible for you to ride a bicycle without even falling on the very first try? No right?

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    • alfie60 on Dec 27, 2011 at 11:04 pm

      Bro E VN,your no.4 point is an important issue. While the AP kings are selling the 2ndhand used cars at almost more than double the brand new price our government are CLOSING one eye when these AP King CHEATING us by clocking the MILEAGE of these cars. We are being SCREWED by the AP kings and the government consenting it!!!!

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      • Expatriate VN on Dec 28, 2011 at 3:17 pm

        Just make a change come this GE 13, once new gov incharge and NAP is scrap, all the blind supporters will wake up to find out that they are screw up for the last 25 years yet give blind support to shitty cars (local and imported).

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  • PakAbu on Dec 27, 2011 at 2:28 pm

    As much as ones feel angry or sad about this, it is beyond our power to control. Indonesia has a huge population (240 million?). This is potentially a big market for whatever consumer goods that you can push to them. The market in China and India has already been captured by those that went in first. Now Indonesia. Next, Vietnam. Later, maybe Cambodia and Laos.

    What Malaysian auto industry should do? One answer, according to Malaysian Automotive Association, is to move to a higher level of the industry like hybrid cars, electric cars, green vehicles etc etc.

    It’s not the end of the world. We just need to adapt.

    :mrgreen:

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    • Cowabunga! on Dec 27, 2011 at 3:10 pm

      You can wait til they country drops flat like Greece before you do anything….good luck to you.

      MAA only talks…does not steer anything in this country.

      Nothing will change in our local automotive industry. I hope the regional countries do well.
      Certain race can survive without privileges, while the other…..good luck.

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    • You stole my comment! LOL It’s fine, I’m just glad there are people out there who are smart enough to realize this instead of just pointing fingers. : ]

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    • oomph on Dec 27, 2011 at 8:39 pm

      but proton is not ready to mass produce hybrid cars. i guess we are all depending on proton eh before the rakyat can move forward?

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      • PakAbu on Dec 28, 2011 at 8:58 am

        Why do we want to depend on proton? Why should we? Yes, looking at how things are going, “everybody” wants a piece of proton. By “everybody” I mean those trying to buy the Khazanah’s shares. These so-called experienced industry players should be looking at hybrids/EV/green vehicles already all by themselves. They have the money. They’ve enough money already. Now is the time for them to re-invest for the future. Instead they are looking at the easy way out of buying into proton.

        They know, as long as proton’s name contain the word NASIONAL there, they are safe. If things don’t work out? Ask government to bail them out. Using our money of course.

        Yes. As things are, this is not very pretty. But the optimist in me tend to think things can get better because we (the rakyat) are getting smarter.

        The pessimist part of me will prepare for the worst.

        :mrgreen:

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    • rapidshifter on Dec 28, 2011 at 2:47 pm

      Malaysian can produce more offspring- reaching 100 million-

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  • The big G are doing all the wrong things, in the wrong time, at the wrong place!!! (you know what I mean)

    General Election is coming soon – and yet the government still think they can win big and take the “rakyat” another spin of lies and deceit for the next 5 years?

    Well, hear out big G, you are going down whether you like it or not!!!

    Unless, you repent (bertaubat) and fix all of these abominations you’ve created.

    I recommend the big G starts removing at least NAP – protection on Protonggg.

    Rest assured, the big G will get at least 90% confirm menang votes!!! More than 2/3rd majority for to maintain the Barang Naik government.

    Well, I hope somebody from the big G is reading this (and making some sense out from this)

    This is a good win-win bargain.

    Rakyat and big G, collaboration (kerjasama), “apa macam”???

    As the saying in WonderPet = “apa yang penting kerjasama X3”.

    Happy New Year 2012!!!

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  • Malingsia Bajingan on Dec 27, 2011 at 2:46 pm

    Kagaknya Malingsial masih mundur dan bodoh bangat hahaha Rakyat nggak bersatu, bakal tewas di panji Garuda nanti!

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    • NISMO - X on Dec 27, 2011 at 3:36 pm

      woi semprot indonesial…
      matlamat hidup kamu hanya untuk dengki dengan malaysia saja ke?
      get a life dude…

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    • blmers on Dec 27, 2011 at 4:44 pm

      bagus..banyak bukak kilang, banyak jawatan kosong..kurang sikit perompak dan penyamun dari indonesia lepas nie..

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    • indonesian=ugly losers

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  • ApaSaJa on Dec 27, 2011 at 2:50 pm

    We have all the right people, place but not the Government policies. Plus Malaysia (28,334,135 million people) market is small compares to Indonesia (237,424,363 million people) and Thailand (66,720,153 million people).

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  • I f government still protecting proton, we can’t forsee any car manufacturer will come to invest here, a little bit can lar, more..sure cannot.

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    • MoFaz on Dec 27, 2011 at 3:55 pm

      anywhere in the world, the country will always try to protect their industries. USA help their automotive companies with trillions of dollar. Japan and Korea kick US companies from their land… and so on…

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    • oomph on Dec 27, 2011 at 6:21 pm

      agree, sikit2 dorang buka manufacturing plant just for malaysia market. but as a manufacturing hub for the region? they are smarter than that.

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  • aekim on Dec 27, 2011 at 3:03 pm

    Malaysian are very unfortunates,because they got government like this. They have no choose but can only afford to buy proton or recon car . Those people so-called “BIG SERVANT” also don’t want it as they got AP can buy with lowest price.

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  • Proton was Tun Mahathir biggest mistake. A few years back, we were the largest passenger car market in South East Asia and it would make sense for manufacturers to place their production hub here. But with protection policies we have lost out billion in foreign investment, thousands of job opportunity and billions lost in foreign currency revenue.

    Thailand exported 135,000 vehicles into Australia from Jan~Oct 2011. Next highest after Japan. This foreign revenue, jobs and tax on profits should have been Malaysians but Tun messed it up. Still not too late, come out new policy immediately and stop protecting Proton, than we can attract the Japanese to invest here.

    They must act now and not wait!!

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    • squall_shinoda on Dec 28, 2011 at 7:14 am

      Actually both DSZ and Proton’s own chairman himself want the government to make the car market to be more open competitively and stop the protection of Proton. They want Proton to fight fairly like a gentleman. But still, who are they to question the government who got the majority of controlling stake through Khazanah. Plus, they are only hired by the board of directors. The only solution is to make them having all the controlling stakes being held by Khazanah as management buyout. They themselves have too much brilliant ideas to make Proton much better and so does their employees and engineers, but it is the government who keeps suppressing them. It is the governments who doesn’t have balls to let Proton to be a more competitive player independently in our automotive industry.

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      • Sampai bila drama ” ini salah Government, bukan salah Protong nak diteruskan?” Part of Protong belongs to Khazanah making Protong apart of Government too. Your statement is like shooting your own big foot!!!

        Sampai bila nak tunding jari kat orang lain??? Sampai bila???

        Protong better stand up by itself or just die. Simple as that.

        This is the worst “cover line” statement I have ever read! Haha.

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  • patriot on Dec 27, 2011 at 3:17 pm

    No thanks to Dr M.

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  • aekim on Dec 27, 2011 at 3:22 pm

    Malaysian are very unfortunates. Why they have government like this? Why they always want to bully “rakyat”? Why they must have a national car? Why some certain people got AP? Why must have AP? Why?

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  • aekim on Dec 27, 2011 at 3:29 pm

    Malaysia government will not care. As long as proton still alive.

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  • After Thailand, they will go to Indonesia then others countries….
    Automotive Industry :” bye bye Thailand” (banjir)
    next 10 years
    Automotive Industry :” bye bye Indonesia” ( gempa bumi)
    next 10years
    Automotive Industry :” bye bye Filiphina” ( taufan)

    P1 and P2 still in Malaysia

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    • After that they will diversify between those 3 countries. Place factory on a higher land in Thailand, still open in Indonesia and Philippines.

      And you dare to say Malaysia disaster-prone? Arrogance will be paid badly by Allah. Please avoid from such arrogance.

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      • What happened to Malaysia, P1 and P2 still in Malaysia because their are our product. Isyaallah.

        Others Automotive company just want to make money. Their will leave from Malaysia if “tak untung”

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  • aekim on Dec 27, 2011 at 3:34 pm

    Malaysia government will not care for all these. As long as proton is alive.

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  • aekim on Dec 27, 2011 at 3:37 pm

    Malaysia government will not care all of these. As long as proton is alive.

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  • wow! snow at Paultan.org! I like!!!

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  • sukasuki on Dec 27, 2011 at 4:12 pm

    banyak penganalisis ekonomi rupanya malaysia ni. tp entah mgapa maseh gak xberdaya saing. mungkin cakap je banyak hebat tapi online fb dan tgk paultan blog mase kerja. patutlah produktiviti rendah.

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  • Sonic Boomz on Dec 27, 2011 at 4:26 pm

    Thanks Najib

    Everyone, get ready to go Indo become maids!

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  • Tu laa dia…satu lagi project BN…. phui….

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  • kabal on Dec 27, 2011 at 6:17 pm

    it the same reasons why Maria Ozawa a.k.a Miyagi wants to go to Indon.. They got something that stimulates!!!!

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  • Government and policies set aside, the truth is that Malaysia has reached a turning point. Our market is somewhat saturated in relation to population. Every 4 in 10 Malaysians got car already. In Indonesia and Thailand that figure is far less. Thus, Indonesia and Thailand have more potential than Malaysia. Furthermore, their economies are also developing meaning more people can afford cars. If you guys remember in the past, Malaysia was the top automotive industry in ASEAN. Today we are just hanging in the balance. With a population of only 28 million, we cannot remain a major automotive player if we do not distinguish ourselves. Thailand got 70 million and Indonesia got like 200 something million. We are a minority. We must make up in QUALITY for what we lack in QUANTITY. Both Indonesia and Thailand only do CBU and manufacturing if I am not mistaken. Malaysia has Proton and Perodua in addition to what the Thais and Indonesians have. We must complete the transition between third world to first world or we will never be able to regain our coveted title as the best automotive player in ASEAN ever again. Both Indonesia and Thailand are booming now, but mark my words, one day, they will get ‘ stuck ‘ just like us… same case with China and India. This is all the simply study of economics. No big deal. Happy Holidays ! : ]

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    • whitesmileman on Dec 27, 2011 at 7:06 pm

      That’s what they said when comparing South Korea to Malaysia 20 years ago. Look at them today!!! And where are we ? Still eating bananas. ahhahahahahaha.

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      • That’s no mystery. Not many people realize just how kiasu the South Koreans and Japanese are. True, Korea was once the world’s second poorest country in the world 60 years ago. We were richer than them at that time. However, the South Koreans were gifted; they lived in a society where things are taken seriously, what outsiders like us have come to call a ” shame society ”. Malaysia, while being gifted with oil and fertile land is different. Malaysians do not wish to spend all live working/ studying. Our society does not place emphasis on such things. Most Malaysians live very relaxed lives. Second, Malaysians have that mentality where ” Orang lain boleh, kita tak boleh ”. The Koreans and Japs believe that they are superior to all others; I don’t blame them… just look at where they are today and where they were 60 years ago. At the end of the day, it comes down to the citizens. If you want Malaysia to be as rich as the Japs and Koreans, you must work/ study 18 hours a day without rest and leisure, among other things. That’s the only way. Peace.

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        • Unforgiven on Dec 27, 2011 at 9:58 pm

          Not to worry so much, we know certain people are still able to survive even with the bumi policies. It will always make the non protected stronger in this global world.

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          • Errr… I don’t wish to sound racist but hey, you’re right. The man who walks on his feet will always cross the line eventually… the man with the crutches… if patah, it’s pretty much game over for him. : ]

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        • DrEconomy on Dec 27, 2011 at 10:42 pm

          Anothet stupid answer from some1 that forget to use his brain.

          Refer to Korea & Msia GDP percapita from year 1967-2005 (Dr Mahathir leading Msia from 1981-2004)-
          Korea (1967)-$280.        
          Korea (1980)-$1845.66
          Korea (2005)-$16,308.19

          Msia (1967)-$290
          Msia (1980)-$1804        
          Msia (2005)-$5042
          -what can u explain from this figure?all economist know that is DrM’s fault!!

          the chronology-
          a)Tunku’s era-Msia economy in par with south korea & taiwan.
          b) Tun Razak’s era-Msia economy in par with south korea & taiwan.
          c) Tun Hussein Onn’s era-Msia economy in par with south korea & taiwan.
          d) Dr Mahathir’s era-Msia economy in ‘par’ with only Thailand & Indonesia,even worse in par with several African economy!!!LOL!

          So u want to say malaysian suddenly stop working after 1981?!
          So u want to say Msian suddenly stop eating after 1981?!
          u want to say Msia suddenly closed their business,stop filling their tank,stop shopping,stop using their ctedit card after 1981?!?!?LOL!
          that’s ECONOMY man!!

          dont be stupid,all catastrophic came from 1old man,Dr Mahathir!!
          He create debt worth RM400billion in year 1998!!but he mati2 hide from rakyat!!
          Plizz used ur brain!!

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          • @DrEconomy :

            I never mentioned anything about Dr M in my commentd alright ? I’m not into politics. If you don’t like Dr M, that’s your problem. To be honest, I agree that he did a lot of bad things to Malaysia in his years of power. Anyway, the reason why Malaysia is lagging far behind ? BRAIN DRAIN. Do you know exactly how many Malaysians are living outside of Malaysia ? Do you know how many Malaysians emigrated since 1957 ? Malaysia is one of the Top 10 Brain Drain countries in the world. Why ? Because Malaysia ( or rather our government ) favours the incompetent. There are many millions of smart, talented and educated Malaysians in the world. But sadly, our government only rewards and employs idiots. What a shame.

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          • HirumaKecil on Dec 28, 2011 at 12:47 am

            If pr win then malaysia will become gay country…

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          • wow BN cyber trooper at paultan website too…GE13 is near indeed

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          • Becoz of empty pathetic minyak kelapa brain people like you who support the current government who sucks your own sweat and blood money for themselves to buy properties and open bank account overseas, the corruption practice in this country becomes “mamasak”…

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          • MoFaz on Dec 28, 2011 at 3:01 pm

            DrEconomy.. I’m not a phd holder in economy like you.. so, this is just my view.
            i wonder what Korea did, which Malaysia didn’t… 1 thing crossed my mind… their automotive policy basically disallow import of cars, but Malaysia didn’t. 95% of cars are locally made. that’s more than double entire car sales in Malaysia. basically, Japan and Korea have better GDP because their market is ‘closed’…
            Gross domestic product (GDP) refers to the market value of all final goods and services produced within a country in a given period. in order to achieve high GDP, we must reduce imports, produce whatever we need locally and produce more for exports. or else, we shift to service based economy like Singapore, 73% of singapore’s gdp came from service sector, compared to malaysia’s 48%.

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        • whitesmileman on Dec 28, 2011 at 8:38 am

          Yes i agree…. That’s why i wanna leave malaysia!!!!!!!!!!

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      • Ya..eating our “beloved” PM ‘s banana..

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    • U sir are not listening. No doubt Malaysia has a small market and may not be attractive if the investor merely set up plants to sell to local market but don’t forget the benefits outweighed whatever NAP policies that is set up to protect the local P1 & P2. Nobody in their right mind wants to see P1 & P2 filed for bankruptcy. All the people wants is to liberalise the automotive industries and attracts more foreign investors and create jobs. What’s the point of have the pride that we are able to produce our own cars albeit at the sacrifice of the peoples spending power having to purchase a non cost effective product. I would rather delay having a national car until we can compete with the rest of the world effectively. What we are doing now is learning automotive industry expertise at the “expense” of the whole nations coffers.
      Put it simply i’m getting less to spend for my family each month cos i have to spend more on my transportation and it ain’t worth it even for the sake of national pride.

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      • Hi WL,

        What you said is true. That we are not willing to put up with the incompetence of Proton and Perodua at the expense of all- round economic well- being. However, come to think of it, this is a two- way battle. Assuming Proton and Perodua did their jobs properly, things would be very different today. Chances are, both Thailand and Indonesia will be dominated by Proton and Perodua. Both companies sell cheaper cars than the Japs and Koreans. So Proton and Perodua would have tapped into the low- end market in emerging worldwide markets. Imagine the wealth that would have poured into the country if that was the case. But Proton and Perodua are stupid. They didnt think of the potential of marketing cars in neighbouring poor Asian countries.. rather marketing them in first world countries like UK and Australia where our ‘ cheap and cheerful ‘ cars are dissed. Both the Koreans and Japs expanded worldwide in the early years. Today, they are far more successful than us as a result. So yes, we expect both Proton and Perodua to do more and not get satisfied easily. From what I have observed this year, Proton has improved significantly. I believe Perodua should be liquidated. The sole purpose for the existence of Perodua is to circumvent the taxes on Daihatsu and Toyota cars in Malaysia for the sake of national pride. Proton at least makes good cars. So theres still hope. What our tunnel- minded government should have done was to integrate Proton and Perodua as a single entity, just like Hyundai- Kia. This is just one step of many. I can’t list down everything here cause it would drag on forever, so please, I hope you can see my point.

        On the other hand, I agree that national pride is becoming increasingly irrelevant today. I think Proton has realized that in the past few years after being beaten up by Perodua. Now all that’s left to do is to eliminate Perodua and allow Proton to develop properly ( without resistance from Perodua ). Then we can remove the NAP and force Proton to compete directly with the CBU Thai and Indonesian Japanese cars. Of course, none of this is going to happen if Uncle *ahem* BN continues to sit on the throne. We still have the power and time. Don’t give up on Proton ( and Perodua ).

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  • That’s the beauty of Malaysia. Always FEELS number ONE even though statistically, we are falling behind. Thanks BN, thanks TDM, thanks Proton, thanks AP, thanks the rakyat who voted in this government. Mana mau cari? Hari-hari high macam kena dadah.

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    • It’s logical : The politicians who rake millions and billions have “number ONE” bank account, “number ONE” cars, “number ONE properties”, number ONE businesses”, “number ONE” everything “number ONE” including sending their kids to “number ONE ” schools and universities overseas, married “number ONE” wives…So, as long as their lives are “number ONE”, they will not care whether the Rakyat are number 10, number 99 or infinity….(but they will act as they care for us and talk like “number ONE”)

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  • runfromnaturaldisaster on Dec 27, 2011 at 8:36 pm

    First of all, let me congratulate Paul Tan as his blog/website attracts even from Indonesia and other countries. I have never for the life of me interested in any automotive blogs from Indon or Thai. Secondly, does this move means the cars we are going to get going to be of poor quality and inferior specifications such as Avanza, Innova and Fortuner?

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  • elite on Dec 27, 2011 at 9:07 pm

    Thank you proton for bringing us cheaper cars

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  • mirror mirror on Dec 27, 2011 at 9:34 pm

    Knowing that the population or car market of our country is not big enough to provide sufficient home ground advantage, why do we even need a national car in the first place? This is like swimming against the tide, I had rather the government redirect those resources into industries which Malaysia has natural advantages like oil & gas and palm oil.

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    • MoFaz on Dec 27, 2011 at 10:49 pm

      national car is not the main objective, it’s just a way to achieve the objective, which is to become a modern country. Korea and Japan has become modern countries from their industrialization and because they continue to develop technologies. that’s what were trying to achieve.
      Malaysia once the main exporter for tin (timah), rubber, and many other natural resources. but back in those days, we had to import cars, tyres, gloves, and tin products. we get money from exports but we had to spend a lot more money re-importing the finished products. the population is growing from several millions to more than 20 millions, and of course the demand for industrial products will grow as well. to reduce import dependencies, Malaysia started to industrialized. now we also have one of the biggest glove manufacturing facilities in the world. if Malaysia didn’t start this long time ago, i believe we could still be in plantation era just like Thailand.
      now, why cars?
      for majority of people, car is the most expensive imported items that they buy. it is the easiest way to let the money flowing out. Malaysian buy 600,000 cars yearly and if the cheapest import is RM30k, that’s easily RM18bil. if we didn’t export anything similar to that amount, we will have trade deficit. thailand banned import cars due to this very reason.
      Our Gov raised import tariffs drastically in 1967 to encourage the Japanese to assemble their cars here, to provide jobs to Malaysians and to reduce imports. so, it’s factually not accurate to say that import tariff was raised due to Proton, because it was raised far earlier than Proton… 18 years before Proton was born.
      too bad the market size is too small at that time. economies of scale could not be actualized with around 15 assembly plants serving the small domestic market.
      and too bad also that Thailand banned import cars in 1978, which forced the Japanese to assemble cars in Thai and leave only few models to be assembled in Malaysia. Malaysia has high import tariff but Thailand banned the import cars. If they make the cars in Malaysia, they can’t import it to Thai, but if they make their cars in Thai, they can still sell it in Malaysia. that was 1978, Proton wasn’t born yet. Plus, Thailand has much cheaper workforce, even cheaper than China. Honda factory workers in China get RM1200, but only RM700 in Thailand.
      That’s just Malaysia vs. Thailand which has twice our population. if we put Indonesia into the picture, surely Malaysia has no chance against more than 200mil population which provide much cheaper workforce and much bigger domestic market.
      Faced with this situation, knowing that we couldn’t hope for foreign auto-makers to build their cars here, the government decided to embark upon a programme of establishing and supporting a national car manufacturer. That’s why Proton was established.

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    • MoFaz on Dec 27, 2011 at 10:51 pm

      national car is not the main objective, it’s just a way to achieve the objective, which is to become a modern country. Korea and Japan has become modern countries from their industrialization and because they continue to develop technologies. that’s what were trying to achieve.
      Malaysia once the main exporter for tin (timah), rubber, and many other natural resources. but back in those days, we had to import cars, tyres, gloves, and tin products. we get money from exports but we had to spend a lot more money re-importing the finished products. the population is growing from several millions to more than 20 millions, and of course the demand for industrial products will grow as well. to reduce import dependencies, Malaysia started to industrialized. now we also have one of the biggest glove manufacturing facilities in the world. if Malaysia didn’t start this long time ago, i believe we could still be in plantation era just like Thailand.
      now, why cars?
      for majority of people, car is the most expensive imported items that they buy. so, it is the easiest way to let the money flowing out. Malaysian buy 600,000 cars yearly and if the cheapest import is RM30k, that’s easily RM18bil. if we didn’t export anything similar to that amount, we will have trade deficit. thailand banned import cars due to this very reason.
      Our Gov raised import tariffs drastically in 1967 to encourage the Japanese to assemble their cars here, to provide jobs to Malaysians and to reduce imports. so, it’s factually not accurate to say that import tariff was raised due to Proton, because it was raised far earlier than Proton… 18 years before Proton was born.
      too bad the market size is too small at that time. economies of scale could not be actualized with around 15 assembly plants serving the small domestic market.
      and too bad also that Thailand banned import cars in 1978, which forced the Japanese to assemble cars in Thai and leave only few models to be assembled in Malaysia. Malaysia has high import tariff but Thailand banned the import cars. If they make the cars in Malaysia, they can’t import it to Thai, but if they make their cars in Thai, they can still sell it in Malaysia. that was 1978, Proton wasn’t born yet. Plus, Thailand has much cheaper workforce, even cheaper than China. Honda factory workers in China get RM1200, but only RM700 in Thailand.
      That’s just Malaysia vs. Thailand which has twice our population. if we put Indonesia into the picture, surely Malaysia has no chance against more than 200mil population which provide much cheaper workforce and much bigger domestic market.
      Faced with this situation, knowing that we couldn’t hope for foreign auto-makers to build their cars here, the government decided to embark upon a programme of establishing and supporting a national car manufacturer. That’s why Proton was established.

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      • Epic comment is epic. ‘Nuff said.

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      • I’ll try to buy your explanation but somehow deep inside, I just get the hunch that it’s just a GLC to “legally” drain money from the people. You can’t blame me or anyone that has the same feeling as me, look at the current g and tell me straight in the face that it’s perfectly fine.

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        • MoFaz on Dec 28, 2011 at 12:50 pm

          it’s not just you my fren, i had the same feeling. we would always wanted an angel. but sometimes we just have to choose the lesser evil which give lesser impact to our economy. we have trade surplus every month since 1998 because we’re able to reduce imports. but Thailand, even as “Detroit of Asean”, had trade deficits in several months in the last 2 years. it could be an indication that Proton has served part of its reason to exist here.
          talking about GLC, it’s one of the way for Gov to earn money, but sometimes as a way to serve people due to lack of interest from private companies in certain sectors. KTMB and LRT, for example require very high cost to build and operate, but they couldn’t charge high fee which otherwise would defeat the purpose. KTM charge RM1.20 for a journey from KL to Bdr Tsk Selatan, compare that to ERL service which run by private, the ticket costs RM4.20 for the same destination. of course they’re both in different ‘level’. what i would like to stress here is that, KTMB is merely provide ‘basic’ transportation, they only charge you the cost, and could barely break-even their operating cost. any private company willing to do that? silakan…
          in Singapore, Temasek own 54% of SMRT, which run the transport system particularly MRT, buses and taxis. and cars in Singapore are probably the most expensive in the world, probably has something to do with the fact that gov own the public transports. with current COE price, can you believe Exora costs more than RM240k here?
          back to cars… proton was established to provide the ‘basic’ car. but in this era of globalization, they have to adapt and improve.

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  • Dr Economy on Dec 27, 2011 at 10:13 pm

    Well well..we malaysian do love our country,but hate our government….LOL…
    In indonesia,how many ‘partai’ lead indonesia for the past 50years?! so same like us,U also love your country and hate your gomen..

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  • Thailand jadi pemasang kenderaan dan Indonesia nak jadi begitu, ok lah tu. Malaysia sudah jadi pembuat kereta, pun ok juga. There will be more trading between ASEAN countries, ok juga.

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    • I love how positive this comment is. God bless you man.

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    • Pasang/assembly??? No, they now manufacture, although not their original brand. They even manufacture more components than our national car maker do. Not only car components, even toolings they do more than our local (pst.. pst… P1/P2 also buying toolings from them). FYI, City, HiLux sold in Japan are made in Siam lah.

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  • Invent kereta Rakyat1Malaysia, priced 30-50% lower than similiar brands, use teh tarik as fuel source, and give Rm500 one time rebate, sure sell like goreng pisnag panas hehehe

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  • rosdi on Dec 28, 2011 at 12:16 am

    I am a malaysian, but i am in bandung right now.. Here in bandung & jakarta the traffic is terrible. Cars can barely move here, it is almost 24*7 ‘macet’ (traffic jam). I do not understand why would indonesian keep buying new cars. Malaysias traffic jam is puny compared to here.

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    • the mass transportation sucks here, even in major cities like Jakarta or Surabaya (let alone Bandung). Thus, the most convenience and the safest way of getting from point A to point B is to get on private vehicle. That’s why

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    • typical stupid malaysian, you think indonesians live only in jakarta and bandung… can’t stand your country is going down eh?

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  • Aditya on Dec 28, 2011 at 9:10 am

    no one with their right mind would buy malaysian shoddy proton. its probably one of the least attractive car on earth. only malays buy them. your ugly national car is heading exactly on the path of your ugly country: nowhere…

    Indonesia is the future and the fact that no sane indonesian would even look at that shitty malay excuse of a car tells a lot about the future. ugly malays will never sell. lol.

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    • MoFaz on Dec 28, 2011 at 11:15 am

      you don’t have to buy our products if you don’t like it. 270 millions people but couldn’t design and produce your own car?? keep driving your kijang. hahaha…

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      • MoFaz GAY on Dec 28, 2011 at 8:50 pm

        Just like Malaysia can design and built your own car with subsidiary from the government, then imposed heavy tax on non-national car thus can sell their car with more profit margin. And you still keep driving your Plotong. hahaha…

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    • berombon on Dec 28, 2011 at 11:53 am

      yea, I’ll tell that to my bibik indon shortly…

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    • Malingsia is loser. They think rebadging Japanese cars is great haha

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      • berombon on Dec 30, 2011 at 1:17 am

        pity, hearing this coming from your mouth..the problem with you indons ahh, you never can accept the fact that you are destined to be at a lower class than us, but that ‘s what you are! from the days of hang tuah lagi..

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  • Tazio on Dec 28, 2011 at 9:28 am

    Everyone talking about some bull$hit about policy.It is all about cost and money..always. The cost to produce cars there is much cheaper than here. End of.

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  • protonforeva on Dec 28, 2011 at 10:07 am

    the malaysian government was voted in by the majority of malaysians. so that means those who hate the government must be the minority (aka PR / Pembangang Rubbish).

    like it or not, malaysia is way better and more prosperous than indonesia, thailand and even singapork. for one thing, the population density is very low, yet, we are the biggest passenger vehicle market among the three!

    tun mahathir had pushed us to excel in all aspect of the economy (technology, services and agriculture). thanks to him, we grew much faster and robust. tun mahathir is the source of envy by outsiders and to some laughable, incompetent PR people.

    lets face it, the old man tun still has it (judging from the sale of his memoir! lee ikan yu memoir is selling how many?).

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    • littlefire on Dec 28, 2011 at 2:12 pm

      If not mistaken the another book ” Malaysian Mavericks” sold more then Tun M own book… lolz… Until need to book from overseas somemore…

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    • ame_nooooooo!!!! on Dec 28, 2011 at 4:55 pm

      ini ini ini…. protong kuli

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  • Expatriate VN on Dec 28, 2011 at 11:57 am

    Looking in front,

    Indonesia set to be No 1 automotive market in ASEAN (counted from front)

    Looking from the back,

    Malaysia set to be No 1 automotive market in ASEAN (counted from back)

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  • Oklah geng! they take lead in automotive… we take football what! (wakaka…)

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  • kamaji on Dec 28, 2011 at 1:56 pm

    Wow a new record in automobile sales in Indon & expected to be climbing….Wait till you see the Jakarta traffic crawl.So it’s not a win-win afterall.

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    • do you think they manufacture cars only to be used in jakarta? moronnn.

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  • Expatriate VN on Dec 28, 2011 at 2:01 pm

    Many argue the pro and con of NAP and P1, just dismantle the NAP, and let market forces determine the fate of P1. Let it be like tax free computer and electronic items. Every consumers happy knowingly very well that they purchase on lowest market price. Every owner of IPhone 4S is happy with the gadget and nobody complaint the basic entry of Nokia phone, this is the beauty of market force at work.

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  • mirror mirror on Dec 29, 2011 at 9:40 am

    It looks like even Proton has its own cybertroopers, should I be reading what they say knowing that they are asked and paid to write only one conclusion regardless of the truth. It makes it difficult to tell which is true and which is false. But anyway I am very glad they hinted that they admit the National Car project is a miscalculation. That is fine because we have many other national projects that are quite successful like Petronas, PNB, Palm Oil (MPOB is the world leader in palm oil research) and many more. The important thing is we know our mistakes and make amendments accordingly.

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  • Unforgiven on Dec 29, 2011 at 1:26 pm

    So what’s the conclusion?
    How do we be stronger for our next generation?
    We need a change!

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  • metoo on Aug 08, 2012 at 4:38 pm

    I have experience working at toyota factory in karawang, West Java. I got a salary of about USD 300 to 450, or about RM 1200 a month, this is in 2006, I don’t know how much today, as salary increased every year in my city. So, I think this is not only about cheap labours…

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  • droll on Aug 16, 2012 at 4:55 pm

    the main reason, i believe, why m’sia is not in the list is because our govt’s policies are not “committed”. it can change overnight. no auto maker or OEM is going to commit huge sums of capital that takes years to recover if the policy can fluctuate like the tide of the day.

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