Prime Minister Datuk Seri Abdullah Ahmad Badawi claims that the government has stopped Proton’s protective policies because it has started up programs like the Industrial Adjustment Fund which exempts excise duty payment depending on the how much the manufacturer has invested in Malaysia.
“The Government has implemented various measures such as giving incentives and grants, technical training through international strategic partnership, which also benefit the entire industry,” said Abdullah.
Since prices have not really come down in the past few years (manufacturers who wish to keep their strong brand loyalty and perception of good second hand value which Malaysians consider important when purchasing a car will never suddenly drop the prices of their cars because they do not want to anger their existing customers by having their car’s second hand values affected), these non-national manufacturers who have benefited can channel the money into a) increasing specs, b) increasing marketing expenditure to increase sales or c) laugh all the way to the bank.
There has not been and probably will never be any disclosure on which companies are getting duty exemptions, but we can see some form of relaxation in policies here and there. For example, Cam Soh finally managed to start assembling his Chery vehicles here – vehicles which are priced rather closely to Proton’s.
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AI-generated Summary ✨
Comments suggest that the government may have officially stopped protecting Proton, leading to concerns about Proton's future competitiveness without protection. Many commenters point out that despite claims of removing protection, high car prices and taxes still prevail, making local cars less affordable and putting local manufacturers at a disadvantage. Opinions vary on whether Proton is genuinely benefiting from government support, with some arguing that protectionism has kept prices high and harmed industry growth. There is skepticism about the true extent of government reforms, with doubts that Proton will survive independently. Overall, sentiments reflect frustration over ongoing high vehicle costs, lack of transparency, and doubts about genuine market liberalization, indicating that the perception of government protecting Proton remains strongly entrenched despite official statements.