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Perodua hopes that the government will consider special incentives for first-time buyers of national cars in Budget 2017, according to a Bernama report. Such a move will drive further consumer spending, said Perodua CEO and president Datuk Dr Aminar Rashid. “This will have a domino effect on the entire automotive ecosystem, as well as the financial and insurance industry, given the sluggish economy in the near term,” he told Bernama.

Perodua’s specific wish list includes continuing with the current National Automotive Policy roadmap in liberalising the market, said Aminar, although it should be done on a staggered basis to ensure local vendors have sufficient time to improve competencies and capabilities to compete fairly, he said. “This is also to ensure that investments of automotive players are not jeopardised,” he added.

Perodua also hopes for continued government support of the local automotive industry, citing Germany, South Korea, Japan and the United States as examples. “This will encourage manufacturing activities, while improving vendors’ and original equipment manufacturers’ capabilities,” Aminar added. According to a Sin Chew Daily report, the upcoming Budget 2017 may include excise duty exemption for first car buyers, which may also apply to cars of foreign brands which are assembled here.

“At the same time, it helps promote exports within the automotive ecosystem. The government should also consider loosening the procurement policy to allow Perodua to be included as an option for government bulk vehicle purchases. This will create greater options and value for the government at a time when it needs to get the best value on items purchased,” he said.

Meanwhile, Proton welcomes any incentive which may be announced in Budget 2017 that may empower and grow the company, said Proton deputy CEO Datuk Radzaif Mohamed in a separate Bernama report. “I feel it is quite important for us to get some incentive to help spur the industry’s growth. That would be very much appreciated,” Radzaif said.

Radzaif also hopes that the government will take into consideration Proton’s status as an original equipment manufacturer (OEM) that has helped a lot to produce skilled local manpower for the automotive industry, he added.