The CEO of the Malaysia Automotive Industry (MAI), Datuk Madani Sahari has stated that the thrusts of the National Automotive Policy (NAP 2014) and free trade agreements (FTA) will enhance the competitiveness of the Malaysian automotive sector on a global perspective.
In a column on the New Straits Times, the CEO highlighted, that with the recent signing of the Trans-Pacific Partnership (TPPA) agreement, the ability of local automakers to compete on a global scale is a topic of much discussion. However, he noted that the country’s population of 30 million represents too small a market to rely on, when it comes to developing and expanding the local auto industry.
“It is important to embrace the change that is taking shape at the global level – the world market is more open, consumers are more demanding and the environment impact of production is becoming more pertinent,” Madani pointed out. With that, he stated that enhanced competitiveness is needed in all aspects, including social, economic or governance.
On the topic of the NAP 2014, Madani explained that the third revision was announced with a focus on the global competitiveness of the entire ecosystem of the Malaysian auto industry, calling to mind the three thrusts that propels it: incentivising investments, technology development and market expansion.
“These three thrusts promote an interdependence with global market forces to enhance domestic automotive players towards becoming a greater force on the global stage,” Madani wrote. He went on to explain that increased investments from both domestic and foreign direct investments (FDI), will allow for local players to mobilise talents and capabilities.
On technology development, the CEO stated that technology penetration is far more efficient when local talent could work together with experts over the world. As for market expansion, Madani said that it is only possible when “export barriers are removed to create a level-playing field.”
On the topic of free-trade agreements (FTAs), it will bring in opportunities for participation in the global economy, which is needed for the development of the Malaysian automotive industry, Madani explained. He exemplified that the locally-made electric bus, developed through the Malaysia-Australia Free Trade Agreement was but one of the favourable outcomes.
He provided another example, “It is noteworthy that Malaysia’s vehicle component sector has been fully liberalised,” he added, and as a result, exports have grown from RM1 billion in 2005 to RM12 billion in 2015. With that being said, he acknowledged that MAI is fully aware of threats that local players would be exposed to with a liberalised market.
Madani therefore urged that the gradual liberalisation of the automotive industry be supplemented with programmes to boost the competitiveness of local players. Six roadmaps that were launched alongside the NAP2014, focuses directly on Energy Efficient Vehicles (EEVs). This, Madani wrote, will also “chart a path towards globalisation of Malaysia’s automotive sector.”
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Still dreaming and continue having a nap nap nap zzzzz
MAI should acknowledge cars in malaysia are very expensive. Hire purchase loan repayment period should be reduced and limited to less than 3-5 yrs. AP system should be abolished. Exsais duty is unbelivably high.
All of these issues directly effect user, citizen and customer. No need to go to sky high ecosystem, technology penetration and what not.
Meanwhile, we as customer, let hold our purchase. Maintain our current rides and if needed buy second hand.
When the buying stop, the killing can too,
When we work together, we can win this
If u dun buy the parts how r u gonna service & maintain ur car, genius?
The only thing u will win is a warning letter from ur boss for alwiz EL cuz ur car frequent breakdown. Jackpot prize is termination letter
hey genius, did u read properly or do u need someone to read and write for you? he stated the issue of purchasing of new vehicles, but not on servicing and parts which u implied.
And both of u r geniuses for not reading the article. He din mention about carmakers (ie P1, P2, toyota, et al). He’s talking about automotive industry which covers parts makers (ie APM, Ingress, SANDEN, et al).
So yeah. Modus operandi of bash 1st, read maybe later, if ever.
If Malaysia knew 30 million people was not enough of a market, why create Proton in the first place? Proton made all other car prices shoot up so much that for 30 years now, Malaysians have been suffering with high car loans.
Why in 1985, did we create Proton if we think the 30 million market is not good enough?
Oh btw, charity begins at home. If Malaysia also we cannot sell our cars and parts, how we want to market to the world?
When TPPA comes in, the global market will think 100X before buying Malaysian products. They will ask, “If their own Malaysians also don’t believe in their own products and quality, why should we?”
The true fact was – mahathir estimated Malaysia to have 70 million population by 2020. Which translates to about 65 mil ppl today. Sadly, it did not happen
Two things Madani has not addressed and he avoids it all the time.
Firstly, why is the AP system still around? Why are these 20 AP holders raking clean profits of billions (not millions) each per year and this is done at the expense of 30 million people suffering with high car prices.
Secondly, why has Madani not asked Najib to honour his promise to 30 million people before the election that if we voted BN in, car prices would drop by 30%.
Come on Madani, now you already got Datukship, has the Government already shut you up for good? Are you waiting Tan Sri Ship now?
John, I think you read it wrongly. Angah is referring about buying new cars, which MAI mentioned above.
I read three times also never see he touching deep on component parts wei? He mentioned it is already liberalised (which is untrue, because some components price are still overpriced), nothing else? I dunno how you arrive this conclusion, but your statement is misleading, genius.
We do not bash, we acknowledge the true problem of current situation and rebutt his statement based on reality. Only MAI, government, still haven’t realise or pretend not to admit.
Global? I think you talking about local right.
CEO Madani always make “self praised statement” the real problem Rakyat/owners were having he just ignore it… This kind of CEO every individual were able be in his position !!! Just simply make “empty promises” and every year then take his monthly salary… Where are the 30% reduce price promised??? Why it’s turn out to be increasing price???
Madani still talks about EEV but government has scrapped EEV incentives. How?
Madani still talks about EEV but Proton is still due to come out with their Hybrid and EEV now 8 years already. How?
What EEV is MAI always talking about? Honda and Toyota invested billions to CKD the Jazz and Civic in Malaysia. Then Government pull the plug on EEV. The car companies lost billions listenning to MAI’s “Road Map”
What is this??? I don’t see the point raised, its PMR level Essay writing.
When will MAI propose CO2 emission-based car excise duty like Thailand here?
Or must wait that jaguh kampong new engine by year 2018?
Speak for themselves. Shock for themselves
Abolish AP system! Abolish preferential treatment!
NAP is a ‘suckcess’. Liberalise market..bila? Don’t syiok sendiri lah brader
Bashers dun like to read before bash. Just makes their head think which they dun like.
FYI, he’s talking about automotive component makers r in a free competitive market and that NAP & FTAs will benefit them by having wider access to bigger markets, but needs their own efforts to promote. MAI will assist them in that matter.
This Madani has face which you really feel like slapping.
Hello Datuk. You are still living in delusional. Before this Thailand is the Detroit of Asia. After NAP and all those FTAs, Indonesia is set to become the 2nd Detroit of Asia. Malaysia car industry? The Power of Dreaming!
it is always half bake in malaysia…at start sounds so promising and all in the end dunno what happen..off track..
hot hot chicken shit..
when u try google Malaysian automotive industry…google list it with a warning “This site may be hacked” LMFAO :D
This fella is talking rubbish here. If i see him in person, i will slap him for what he said.
You want global competitiveness?
You created proton and tax foreign cars heavily. Hello?
You and Tun M blame rakyat when Proton sales is not good.
You never address AP issue, which is one of the biggest reason why imported cars are so expensive.
You say of technological penetration, but foreign brand can’t even bring their latest engine tech to Malaysia, due to our euro 2 RON 95 fuel here. Yet our local brand Proton is still far from even developing a stable, reliable powertrain yet in 2016.
You want to encourage local people to grow while working with foreign experts, but you didn’t provide adequate infrastructure and training to the local workforce. Don’t ask me how, you can look at Thailand and Indonesia as example. Government job is to provide room for local brand to grow, not just by talking only.