The National Automotive Policy (NAP) is under review to ensure that the country’s automotive industry remains competitive, said prime minister Tun Dr Mahathir Mohamad. According to a Bernama report, the review of the NAP relates to the development of the industry which includes the national car project, the development of local companies, research and development as well as to increase exports.
The national automotive industry, involving Proton in particular, suffered a decline in the past 10 years due to the policy of allowing cars to be imported into Malaysia, while locally produced automobiles destined for overseas markets have been subject to conditions such as compliance with Euro 5 emissions standards, the prime minister said.
“These countries have huge plants and produce millions of cars annually and they impose restrictions on cars entering their markets,” Tun Mahathir said in reply to a question by Ayer Hitam member of Parliament, Wee Ka Siong. Additionally, financial assistance was granted to Proton only after a part of its equity had been sold to a foreign company, while Proton had long since sought government assistance, Dr Mahathir said.
“In the past, Proton penetrated the Malaysian market and overseas markets. We were able to sell 25,000 Proton cars to the United Kingdom and elsewhere but the performance of the Proton venture declined due to the lack of efficiency of the previous administration which had little knowledge of the industry, and the previous government also allowed the entry of all kinds of cars into Malaysia,” he said.
The prime minister said that he is convinced Proton would be able to achieve the success it had attained in the past if it was assisted by the government, and in this regard the Pakatan Harapan government would reform the national automotive industry in order to grow the sector as a whole as well as its sub-sectors, while creating high engineering capabilities among the people, he said.
The government was aware of free trade practices that do not restrict the entry of goods via high taxation, the report quoted Dr Mahathir as saying. “That’s why we have to look at the possibility of certain conditions. Foreign cars cannot be allowed to enter the country easily and dominate the local market. We are looking into this,” he said.
The Malaysian government is also willing to work with any company which has the expertise required for the production of the third national car brand, the prime minister said. “But, we have to be in control (in terms of equity ownership) and take on a meaningful role in the management of the company,” he noted.
A new national car project must be backed by the private sector, rather than banking on public funds, said finance minister Lim Guan Eng in an interview last month. Your thoughts, dear readers? Will protectionism work out in the long run?
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tiger never loses its stripes
Hello Tun, no need NEP and tongkat for Proton.
Also, Malaysians have suffered enough with Proton and its protectionism. Because of Proton, all car prices have gone up 800% since 1985.
For example, Toyota Corolla in 1985 was RM20k. Today, in 2018, the Toyota Corolla is RM139k
The same Toyota Corolla in Japan has only risen 50% from 1985 to 2018. Car prices actually have gone down over 30 years due to automation, robotics and economies of scale despite inflation.
50% vs 800%
Hello… Of course in Japan is cheaper. It was made Japan. Please compare to country other than Japan please.
it can be apply to P1 n P2 what…
stop complaining… you’re the one who voted for him.
Hippo left. Luckily lion just around the corner
Proton failed badly in the UK and all other markets. I don’t know what lies that Proton did so well.
Infact Jeremy Clarkson labeled Proton as the wost car in the world and the most unsafe car in the world
After tasting Satria Neo S2000, he luv P1 unlike what he did with a certain Kelisa. Lolz!
he is musang, not tiger
This is a sad day for the majority who voted for PH.
Cos of everlasting perlindungan,the rakyat has to pay thro their nose when opting to buy Japanese cars.
Tun,you are giving bullets to Zahidkor to attack your administration.
Even MAA Datuk Aishah is against further protectionist measures.
If Tun still wants to punish voters/car lovers…lets have a moratorium…BUY ONLY USED CARS.
Proton,Perodua and his Protiga can kaput.
Tun,u have a problem.A very big and inflated ego.Time to fulfill the other 8 promises instead of chasing another unprofitable dream.
We waited for lower car taxes .Now with SST 10% and further taxes to protect national cars…whats the difference between Ajibkor and PH now? Is it pakatan hadangan?
Why sad? He alredi mentioned this long ago https://paultan.org/2017/08/25/tun-m-wants-to-start-another-proton-if-pakatan-wins/ and now he really tepati his janji to his Kawans unlike the other manifesto that got capatied.
Looks like people missing Najib already. Ha ha ha
I don’t know whether to cry or to laugh now.
In 2 years, if he’s gone, you are safe. If after 2 years, he’s still in that seat, and still with that national car so so, then you better get the tissue within reach.
inb4 P1 2.0 coming soon near u. Lolz!
Ok la you are the PM now, can say whatever you suka. PH will still win next election but you wont last another 3 years. You are 93 now and eventually you will die, and your proton dream will die together with you.
This is a rude statement. Give a good comment rather this kind of comment. You should be ready for police report.
Don’t just simply blame Tun M. It is majority of us who vote for him to become the Prime Minister again. We all know before the PRU14 that he will be the 7th prime minister if PH win. Or maybe you can start blame your self and “muhasabah diri”
Corecto. I lolz at those who now regrets it. Nasi sudah jadi bubur.
This is the one thing I hate about this old man.
Will protectionism work out in the long run? The answer is yes. Look at VW! and do refer to Porsche vs VW takeover. The G should look into the German G and VW model for management.
Your point is valid BUT… Proton wasn’t born yesterday. So, please don’t come up with this airy-fairy imagination of emulating the Germans.
Tell me does success comes from reality from the beginning? airy-fairy imagination first, work hard and learn. even if it fails, try2 again.
Why Malaysian prefer to buy foreign brand cars…that is the question that should be asked and not putting “all kind of foreign cars” are allowed into the country. Fine if some of the foreign cars are made of “tin milo”…our proton are of “tin susu pekat”…tin milo is better than tin susu pekat. Malaysia are a great car assembler…so why not capitalize like our Thai brother….The Detroit of the East… 3rd National car is just doesn’t make sense for the poor..maybe it just make sense for the rich cronies and Ali baba…..with due respect I do respect Tun M. He is my idol since I was a boy.
It was Protectionism that caused Proton to fail SPECTACULARLY !!!
Those 25,000 sold in UK were primarily rebadged Mitsubishi. They were Euro4 compliant, which was the standard at that time. Then UK moved on to Euro5, while Proton stubbornly stayed with Euro4, as the nation had zero impetus to progress to Euro5. In the end, Proton wasn’t able to continue selling not due to UK protectionism but by others progressing whilst Proton stood still.
Just open the car market to free market, zero protectionism. Fittest survive. Only then can we progress & cull the unproductive deadwood. This NAP tongkat has molly coddled the industry to the point that Thailand is now the Detroit of ASEAN. We’re just simply uncompetitive, not investor friendly nor moving with the times (ie still talking about ICE while others are going electric).
Tun, please stop this nonsense. We as the rakyat don’t need a local carmaker anymore. Please take Indonesian as an example. Just having Toyota as their true local product rather than wasting money for R&D and marketing.
I agreed with you man!!
i don’t think this could be happened again…proton are already very costly experience for us n more then a decade had spent, time o money..so it is more then enough for you to prove on we are a big failures and losser in this line… even just a small 100% small kapchai we also cannot create, then you want to goes for 4 weal..DM you must learn from Geerly, not by control or forces rakyat again hard earn money to buy a tin milo which is not cheap at all. Or you must start from yourself first by force every gov. stuff and family member only can use national car n no others brand, including yourself..
Or you your own family money to create you 2nd dream.. people’s already hurt and sad what you had did by forced us to buy another national car..Lastly this will end up PH if happened again.
Sudah la lu Atok Madey! Kami nak pakai Honda & Perodua. Kami taknak Proton milo tin kamu. Dah la.. jangan paksa kami beli Proton.
Don’t know whether want to cry or to laugh..
Dumb and dumbner. Never did learn from past mistake.
Also leopard never changes it’s spots…TDM everyone knows Proton is a big failure because of the poor quality standards and technology period. Please stop no more wasting public money. Rakyat are suffering so much already. Level the playing field for the automotive industry. Do the right thing now!
The National Car Policy must be reviewed in order to benefit rakyat. The ultimate aim is to provide support and grant in terms of advanced facilities and technologies for the local car companies in order for them to compete in the international market and increase production capacity, which directly will bring down the car prices to affordable level. In addition, hurdles for the imported cars are to be set in order to protect the local car manufacturers. The increase in manufacturing capability of local car companies not only helps to reduce prices, but also creates ample job opportunities for our young generations to prosper in the high tech arena. All in all, I fully support Tun’s proposal. Lets buy Malaysian made cars and be proud of it. Malaysia Boleh! Pakatan Boleh!
So imported car price will be higher ? Woii xkan aku nak undi PAS next election! Adoiii
Stop this useless protectionism rubbish, remove this unnecessary excise tax on cars, we have been protecting the same 2 makes for the last 4 decades or so. Time to stop and let them fend for themselves
Betul2 teruk… u r only protected few CEO, which already rich enough with those easy money, then the all Malaysian had to suffer for all this.
Agree with the wise TUN.. we need to protect our national interest. The economy is dependent on the new national car to be successful for it to be a economic power horse.
ABSOLUTE NONSENSE !!
Look at SINGAPORE without any NATIONAL CAR PROJECT already HI TECH & 1st WORLD STATUS.
When is Malaysia turn ?
Proton failed due to too much political interference such that it couldn’t compete as a proper car company.
Many countries and car companies are already heading towards Euro6. Many cities are going to implement zero emission vehicles into the city centre. This is where the current Proton partner Geely is able to provide the technology to bring it up to date fast. TM need to stop interfering in this business to avid impeding the progress of P1. Like it or not, car manufacturing now not only requires huge funding, but also speed to market for any R&D
Other car companies are also impacted, which is why diesels are dying,.. due to emission requirements. They do not selectively discriminate against Proton only, as what he is implying. It is a fair market out there, but sadly not here.
we know what we are paying, but if you say on safety or tin milo go and close the P1 N P2 first before blaming on others brands. tin are created by p1 n p2, others just followed what you had did..
Hidup tun, do you know the decline of your proton is start from the 100 percent locally made proton Waja? And that’s happened during your ruling
Omg! I just hit me! Khazanah is an investment arm. 1MDB is also an inversment arm. Haha
Kawans comes ka-ching! ka-ching!
Must be joking….wasting time to build a car project. I much rather assemble electric cars. Better margins with less initial capital needed.
I dont really get why you need to increase the price of imported cars. This shit has been going on since 1990’s and you keep increasing the price of imported cars. Please reduce Proton’s car price and people will buy it. You are willing to sell Gen.2 for a lower price in Saudi Arabia but choking all Malaysians with the crap you’ve made. Illogical!
Proton’s failure is due to him appointing incompetent and connected people to top posts. That’s all there is to it.
He now talks about automotive industry reform? Whoever takes over from him in less than 2 years must do the right thing.
Will he walk off within 2 years? Its just like him promising to walk off from politiks after retiring but UTun later.
The old Proton vendors were the ol’man cronies during BN days. But, most of them have left BN and join PH together with him. I’m pretty sure the ol’man will ensure any new vendor contract will be awarded to his cronies later on if and when the 3rd national car project come ti fruition.
Vote bn, we get 1 trillion debt. Vote pakatan, we get milo man revisited. Come next election, is this dr still around?? Make sure no money goes to waste for P3.
Boboi ada mah! The legacy continues.
Lets see what other MPs action. We won’t hesitate in voting them out.
Hey Dr M… stop blaming the Euro 5 and Euro 6 standards. Your Proton simply sucks ok?
Euro 6 is already enforced in sg and most countries in Europe are already on Euro 6. Even in USA and Japan where different emission standards are used, they are basically very similar to Euro 6 technically.
Your pathetic Proton crap can’t meet today’s tough emission standards..thats your problem. I want to see how you can force other car making nations to let your dino Proton sell in their countries with special concessions in emissions quality just because your crap engines can’t make it at all.
You are not Donald Trump Dr M. You cannot tell the world what to do just to suit your cronies and selfish interest.
omg.. omg.. NO please..
Don’t worry Tun, just increase the car price kaw-kaw la…Malaysian pakai kereta T and H pun dah sombong abis atas jalan, imagine pakai conti. I support you 100% #TaxtoMax
Imported cars are not tin Milo cars. It is because of free and open competition that we get the best car at the best price.
no need to review, just scrap the idea. don’t make us lose more money.
I think he visions high car price = low car sale = low road maintainance = low PLUS etc maintainance = toll abolishment. Keeping his promise while filling pockets. Kill 2 stone with 1 birds la.
Dear Tun,
It’s okay to grow the automotive industry & it’s sub-sectors, but having a national car is not the only way. Just look at Thailand’s automotive industry – it’s generating income, creating jobs and eventually engineering capabilities, even though there’s no national car in Thailand.
If Malaysia wants to burn money in creating high engineering jobs, might as well start an aerospace agency or company like Space X and build our own rockets. It will create tremendous sophisticated engineering capabilites. It will fire-up our pride & patriotism. I think we’d all get goose bumps seeing the first successful rocket launch (whenever that happens). I’m damn sure the same can’t be said with a third national car – no matter how ‘canggih’ it is..!
Btw…we don’t mind if policies are put forth to protect this national aerospace company.
Ya man. Start launching satellites into space
Sudah lah Tun!
Why private Auto? There are so many to build and learn in heavy industry!