Datuk Shahrir Abdul Samad, chairman of the Backbencher’s Club says if high local content is making Proton not competitive, local content should be reduced.
“If AFTA requires only 40 percent local content, there is no need for us to go up to 90 percent, unless it makes Proton cheaper and more competitive. We have to make a rational decision. If our cars are expensive due to high local content, we need to reduce the price by reducing the local content. They have already been operating for more than 20 years. If the quality of their products is still not up to standard and cannot be exported, they should close down. If they are still not efficient, they should not be in this industry.”
The problem with our locally manufactured components is likely lack of volume which drives component prices up. We also have the problem of incompenent component manufacturers making components without proper QC. I’m sure any Proton owner curses the car’s air cond vents.
If Proton is to be truly competitive, such social responsibility towards local vendors should not be imposed on them. They should be free to source for components anywhere in the world they want, as long as it makes sense. This should give the local components manufacturers a kick in the ass and hopefully they buck up.
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AI-generated Summary ✨
Comments largely support Shahrir's call to reduce local content in Proton vehicles if it hampers competitiveness, emphasizing that high local content leads to higher costs and lower quality. Many agree that vendors must improve quality or be replaced, highlighting issues like poor parts and management inefficiencies. There is widespread frustration with government protectionism, cronyism, and the high costs caused by local vendor dependence, which hinder Proton's competitiveness and lead to expensive, subpar cars. Some see the move as overdue, advocating for more open competition and sourcing from overseas to produce better, affordable cars. Overall, the sentiment favors higher quality, cost-effective vehicles over protecting local vendors whose products and practices are viewed as problematic.