Tun Dr Mahathir Mohamad won’t be letting go of his automotive dream easily. Yesterday, the prime minister raised the prospect of restricting imported cars to give priority to local cars, just like in the old days.
“We are now very open to accepting foreign brands. All cars, even those that are made out of ‘tin Milo’ are being allowed into Malaysia. But our cars are finding it hard to penetrate many other countries,” Mahathir said in the Dewan Rakyat in response to a query from Ayer Hitam MP Datuk Seri Wee Ka Siong about the third national car project the PM proposed.
“There are a number of factors that had made it difficult for Proton to penetrate the foreign market, which includes strict terms, conditions and policies that have been set by other developed countries. That is why we must review the possibility that certain conditions be imposed so that foreign-branded cars won’t make it to our shores that easily. And this will give the opportunity for our local cars to enter into our automotive market,” he added.
Raising barriers to restrict imports is a regressive move, says Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad, in remarks reminiscent of the US auto industry dissuading president Donald Trump to proceed with auto tariffs.
“Yes, it’s a regressive move for the auto market. I don’t think it is right for the government to say they want to put certain restrictions on carmakers, other than Proton, on cars being brought into the country,” Aishah told reporters after a briefing with the Council of Eminent Persons yesterday, reported by The Edge.
The opposite of restrictions is liberalisation, and that should be the way to go. “That (liberalising the market) is the way forward for the auto industry. If you want to create a conducive auto industry, then you have to liberalise the market,” she said, adding that setting restrictions on foreign cars to support the growth of national carmakers is against the spirit of the automotive market liberalisation, a policy designed to create a conducive market by allowing firms to compete on a level-playing field.
Who is the PM trying to protect anyway? It surely isn’t Perodua, which is doing better than ever, which leaves Proton. “Proton is no longer owned by the government…everybody should get the same treatment,” is Aishah’s response, pointing out that many foreign car companies have local operations and high local content. Again, this echoes the US auto industry’s point of view vis-à-vis the Trump administration’s.
“Even though you are talking about foreign cars in Malaysia, they are highly localised and so our policies should not be discriminatory. Honda, for example, has 70% to 80% local content and they cannot be considered as foreign cars, when they have such high local contents and assembled in the country,” the MAA head stressed, adding that all policies must be implemented without discrimination.
There’s more than one way to develop the local automotive industry. One is as per Tun’s template: make our own car. The other is to follow the path of Thailand and Indonesia: be a factory of the world. The MAA is for the latter. Aishah says that by providing a level-playing field, Malaysia will be taking a step in the right direction to replicate our neighbours’ success stories.
“Thailand is exporting 1.3 million cars and Indonesia is supplying more than 100,000 cars to the global market. Ever since the government created Proton in 1983, the country’s car exports have been at a mere 20,000 units to 30,000 units, which is much less than our neighbouring markets,” she said.
Unsurprisingly, Aishah isn’t too thrilled about the proposed new national car company. She said the government should reconsider its plan and conduct a thorough feasibility study before going ahead with the idea, as it is a highly capital-intensive venture. Also, Malaysia is a small market with annual total industry volume hovering around 600,000 units.
“What we don’t want is further incentives provided for (the) new national car (company), which (will) really disrupt the industry. It will not help the industry at all,” she said bluntly.
I think it’s safe to say that most Malaysians aren’t excited about going back to an era when national cars were forced on the rakyat due to protectionist measures, and the PM knows it. Do you want a jaguh kampung in an arena where the hands of the other players are tied to their backs? Also, which cars are Tun referring to when he mentions ‘tin Milo’ imported cars? It’s not the first time he has used the term.
Share your thoughts but remember to keep it civil.
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Spot on Datuk Aishah,
Pengurus Besar Jualan Ford Malaysia
Most would pick Ford over Proton is prices are not distorted.
Proton aims to become global brand by 2006
9 Oct 2001
National car company Proton aims to be a global brand by 2006 with the help of its British unit Lotus Engineering Ltd, its chief executive Mahaleel Ariff said today.
Proton currently had a “bargain basement” brand but “in 2006… we’ll have to go global” with Lotus technology, he told reporters on the sidelines of an Asia auto conference here.
She’s from Jaguar Land Rover Malaysia lah…. though its from the same Sime Darby Auto Connexion Group… but she’s ain’t representing Ford in the association…
We don’t need tongkat for Proton anymore
Malaysians have suffered enough with Proton and its protectionism. Because of Proton, all car prices have gone up 700% 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 700%
TDM – So it seems like YOU DON’T GIVE A CRAP about rakyat after all.
All those tearful ads about you wanting to right your wrongs – you just wanted to come back to protect your son, cronies, shove Proton down our throats again, and piss off Singapore.
1) You taking over Khazanah – that’s WORSE than Najib taking over Ministry of Finance! MoF is toothless, just book-keeping. Khazanah you control the actual billions!
2) You appointed so many of your own Bersatu guys in the cabinet, even though you won the LEAST seats, in both number and percentage.
3) You so quietly said no reports are made against Taib. He’s bigger than 1MDB. And PORT KLANG FREE ZONE PKFZ? No revisit, because of your pal Tan Sri Ling Liong Sik?
4) Your reasoning for restricting imports is INSULTING. Other countries impose restrictions? Then how come Honda no problem entering US? Kia no problem entering Europe? Ford no problem entering China? The restrictions that Proton cannot meet – SAFETY & EMISSIONS! Proton just plain sucks!
5) You want to restrict our market, but you want other countries to open up their market for our palm oil and other products? CRAZY?
A very good response from the MAA.
Ready to Compete by 2006, says Proton CEO
9 Oct 2001
During the next four years, Proton will be in the final stages of becoming a fully capable automaker and will be ready to compete in an open market. This was declared by the company’s CEO, Tengku Tan Sri Dr Malaheel in his keynote address at the 6th Roundtable on the Automotive Industry in Asia, a conference organised annually by The Economist magazine.
Hahahaha. 17 years ago, and still syiok sendiri.
Remember the big hooha and continual slow teasing of the Accordana before it was revealed to everyone’s supreme laughter?
Second that. Bravo to this lady. Anyone with some common sense will share this same thought.
Aishah is absolutely right!
Going to the good old days (meaning bad old days full of suffering) is not the way forward.
Proton must compete and any new car company must compete and it must be solely based on meritocracy.
Tun must forget about the protectionist policies of yesteryear and focus on liberalisation.
The only ‘Milo Tin’ then was Proton but its not a Milo tin now. China’s management of Proton is doing a great job and they believe in meritocracy.
MAA stating the obvious again.
MAA vehicle sales data and TIV.
His legacy!
You had decades to LIBERALISE what was done? TIME TO GO.
Well said.
exactly.
“There are a number of factors that had made it difficult for Proton to penetrate the foreign market, which includes strict terms, conditions and policies that have been set by other developed countries. That is why we must review the possibility that certain conditions be imposed so that foreign-branded cars won’t make it to our shores that easily. And this will give the opportunity for our local cars to enter into our automotive market,”
I guess its not all about strict terms n conditions, i believe whole world knows how bad p1 car is.
Told ya Proton must change the chief designer.
Stupid lousy design can never help improve the sales be it locally or abroad. First impression is always the good design factor.
But sadly Proton refuse to change and rakyat also will forever refuse to support Proton.
You should point that to the vendors who supplied parts for Proton as well. Design is OK, but the QC was terrible during the old days.
I thought this auntie MAA just wayang kulit. Somehow she spoke something realistic. Cool. I support you auntie MAA.
Actually I support that crap and its eventual chain effects. Here’s why:
1. It will result in even more sales to Perodua as squeezed rakyats finally switch off their minds away from Proton regardless of whatever flying cars offered by Geely.
2. Proton will suffer far bigger public backlash, its market share probably plunged to historic low at mere 2.6% TIV.
3. That surely leave Geely DRB to burn RM1 billion losses each year as usual.
4. While Geely wasting time and money stuck itself here, other China brands act smartly like Wuling in Indonesia and MG in Thailand continue their brisk sales. MG GS SUV model currently selling as much as Honda HR-V in Thailand as well as other sedan, hatch models which is unheard of for any China cars there before.
5. By the time Geely realise its grave mistake and trying to quit Proton, it’s just too late and lost the golden window period snatched by Wuling and MG in commanding a solid foothold in ASEAN.
Adios Proton. Bye2 Geely.
Get rich or die tryin’ – 50 cent
I am not a fan of MAA but I have to agree to Datuk Aishah on this.
Tun, we respect ur high “semangat” about another national car, but u can see clearly already that p1 is a failure especially after campro was introduced. 90s era p1-mitsu is the best. U want fast profit, just rebadging like p2 then good. P1-mitsu already screwed, so try rebadge other jipunis brand. Suzuki would be good.
Clearly Tun M is clearly still bitter about his failed national car project. For whatever reasons it failed let’s stop at that.
Now, the people have been asking for many years to reduce car prices drastically. Why can’t the government give us that? You have tax on top of tax on top of another tax. It’s very easy to reduce it from this angle.
The implication of this is however very severe. There will be a lot of losers and not a lot of winners. Firstly, our roads are already very congested. Reducing car prices will therefore make it terrible to a point it will almost become a crisis.
Public transport is vital. Long term planning is necessary. For our everyday folks, the government needs to work out a solution where personal transport to and from work is completely not necessary. Imagine a household who has like 5 cars is able to cut down to 1 or 2. Also slow trains, mrt, lrt, ets, etc are an issue. More time on the road/travelling reduces productivity and also quality family time.
Bringing down car prices has been politicize. It will be twisted and turned in every which way possible to garner support or hatred. Let’s hit the reset button and move forward with a long term vision. Cut out all the crony nonsense. Sadly politics involves corruption no matter where you are in the world.
Still disappointed with the current direction of the gov.
if you are old enough, you will know and will remember Tun M’s vision 2020 which include having 70 million population by 2020 so this can generate good economy internally.
having 70 mil ppl is similar to south korea and thailand having now. we can achieve an annual total sales of more than 1 million units a year easily (now we register 600k new cars with 30 mil ppl). and if proton can hit 250k from than 1 mil total, it will be a win-win situation.
Why need 70 mil ppl just to buy the poor quality Proton or incoming third national car.
Remember , a big population is not good for a nation that create so much social problems , shortage of jobs/opportunities and some food shortages ( more import needed)
People need to be feed with nutritious foods , look after with proper health care and need global education standard ( not kampung standard).
Just for the sake of having 70 Million population as economy of scale just to buy Proton or any third national car , I think this idea is CRAZY just to benefit a handful of people only at the expense of the others
Do you think every MALAYSIANS will want a Proton when you expressed democracy and freedom of choice in buying?
Please Wake up to the world reality now.. we lack capable technical/engineering local talents due to poor higher engineering /technical learning standard in our local universities ( not even in top 50 like Singapore Uni)
Your lacking of knowledge in simple economy is amazing. When there are more ppl in the community, the local economy will be boosted, self generated.
Ppl spend more at grocery shops, supermarkets. More ppl come to barber shops. More ppl using highway, generate more revenue.
More ppl working, they earn salaryband have the buying power. businessmen earns more. Can hire more employees, with better pay and maybe bonus. More ppl using public transport. More ppl buy houses or rent. More ppl buy cars. Enough said.
USA has over 300 million population..
India has over 1 billion population..
Whoose citizens are having a better life??
Larger population without quality of life also cannot get u anywhere!!
Croatia oni 4 million population.. made it to WC final. Kualiti vs kuantiti…
Fake news analysis
Ron is correct . You got retarded knowledge on having a larger population without quality and disposable income especially happen mostly in third world countries.
Is Malaysia a third world country by the way?
Furthermore , it’s Quality not Quantity please
Aishah voice out a very constructive opinion…
Tun should let it go.if we tak boleh mean tak boleh no matter how.dont waste time on it.
Why only Proton or Perodua always on national carmaker headline? What happened to Naza, Inokom, Bufori, ?
Having a dream to build national car for a 93 years old man is really good. But before that, we need to have the good technical and business minded people to run the company. Proton fall is because they do not own the core technology to build a good car plus never have the business mind to build car is cost effective way… Spending government and people money to is a failure to build a national car company.
Well said Datuk Aishah Ahmad! All we need now is to let the consumers decide what are their demands for a good quality car and let the supplies provide these good quality cars. Simple demand and supply.
Proton and Perodua are garbage cars, why is Mahatir trying to make another pile of garbage. If people want to buy a Toyota or Mercedes, let them.
While Proton was barely making things like ABS/EBD/Stability control STANDARD, companies like Honda/Mercedes was making features such as:
-Collision Braking Mitigation
-Rear Automatic Emergency Braking
-Lane Keeping Assist
-Lane Departure Mitigation, etc.
as STANDARD.
But no, according to Mahatir, Malaysians shouldn’t have the ability to get quality cars and rather the be forced to buy that from garbage ones (who get easy money).
I’m am glad to have moved to the United States, a budget car here (Toyota Corolla), has 10x better quality and safety than the most expensive Proton (which is basically a rebagded 2008 Honda). If I want, I can easily get an E- class for the same price as a Hyundai Santa Fe in Malaysia.
suddenly these people are talking human language. no complains. bravo. finally sensible talk in malaysia.
National Car project is just a tool of money politic tools, use in distribute the $$$$. Proton not loss billions because of low sales, but because of the billions R&D cost!
I have many times pointed that almost MYR10K spend on R&D in each proton car. Facts also tell that 80% of P1 sales is Saga.. the lower price entry level car! Which stupid on the world would spend 10K R&D on a below 40K car? R&D cost more than 30% of the car cost? Leave P1 to Gleedy.. and Toyota will able to ensure P2 continue… Please Tun, let the national car project rest in Peach… Malaysian has loss millions of work opportunity by turning down the foreign brand in the name of protecting national car! Thailand benefit the most from MY National car project!
Thailand shall give Tun M a title of “Bapa Pembangunan Automotive Industries in Thailand”
Sudah-sudahlah… orang taknak Proton. Jangan main paksa-paksa. Ko jugak yang susah nanti.
If the people can vote BN out because of GST, there is no reason why we won’t do the same for inflated car prices.
I think Tun is just simply trying to stop all those made in China cars flooding the Malaysian streets. We can see a couple of Hawals and others … Who knows there will be cars from China, Turkey or India with the least safety and non-eco-friendly cars get flooded in our roads? Maybe that could be a reason. Hopefully, he is not serious about making the same mistake again !!
Least safety China cars? But he’s promoting Chinese ripoff that supposed to be worst least safety.
Let the market decide la! If the China or Turkish cars are crap, people will not buy. You think people don’t research cars?
Don’t patronize us and treat us like kids.
Tun M still have dreams, but we all have to face reality, perhaps I have to disagree with the statement of “tin milo” imported cars.
Dear Tun,
Rakyat can survive without a National car, pls improve public transport. Your idea will turn into “bantahan rakyat”, Anuar pls help rakyat to voice out against this 30+old pride that burden this country!
Dear MAA,
I dont quite agree with your Liberalisation of automotive industry nor do I agree with having another national car.
As a Malaysian car buyer, I haven’t heard any proposal that can deliver on the following:
1. To provide Malaysian with job creation in automotive industry.
2. To create sustainable, competitive, strong and robust automotive industry (incl design, production and sale of locally produced car, spare parts, car accessories, tuning and mods as well as car maintenance and repairs.
2. To provide Malaysian consumer with World class quality and price parity amongst ASEAN region (as we are supposed to be a single market of 450M population).
3. One or two Area of Excellence that Malaysia can be a global leader in automotive segment. eg UK has their motorsport in the heart of England Brackley (AMGMercedes Motorsport), Thailand as ASEAN regional car producer, etc). One time we were talking of becoming the PHEV or electric car production hub and that idea died away unmentioned again.
For once, I would like to see a concerted efforts from policy makers (govt), industry association (MAA), automotive producer (perodua, Ford, PSA,etc), consumer group (CAP, PPIM) and others. These players need to think big (BHAG-big hairy audicious goals) for Malaysia before we are put into a corner as a mere consumer nation that have no controls whatsoever of our own destiny and hard earned money.
Look who’s do the talking…
MAA speaks out LOUD for it’s members – of perhaps more specific the MAA Council Members which surprisingly NO PROTON or PERODUA.
Applause…
Dia daripada Jaguar Land Rover Malaysia kan?
If Tun Mahathir goes ahead with his plans to start a 3rd national car and imposes more restrictions to imported cars, it will be the start of his popularity going downhill, as people will equate that move with the old Mahathir style. The nation has spent mroe than enuf money on national cars and the result is that the average price car in malaysia is one of the highest in the world, if equated to mean income.
Aiya, what better way to make everyone pay into crony pockets, like old Proton. Now want to repeat!