Third national car will use private sector money – LGE

Third national car will use private sector money – LGE

Here’s another assurance from finance minister Lim Guan Eng that the third national car project proposed by prime minister Tun Dr Mahathir Mohamad will not use public funds. Instead, it will be funded by the private sector, Bernama reports.

“If it comes from private (investments), then there will not be a problem,” he said when winding up the debate on the Supply (Reallocation of Appropriated Expenditure) Bill 2018 at the Dewan Rakyat sitting yesterday.

It’s not the first time he had said so. In June, Lim told Channel NewsAsia: “I told the prime minister that we don’t have the money, and he knows it. So it is not from public funds, it’s not like Proton, no. If there are private parties who want to do it in Malaysia using their own money, I think that is something that would be worthwhile looking at – but not from public funds,” he said then.

Third national car will use private sector money – LGE

The new national car topic was first raised by Mahathir at the Nikkei Conference in Tokyo in June, after the PM felt that his beloved Proton is no longer a national car. Despite the idea not being very well received by the majority of Malaysians, including politicians, Mahathir has pressed on.

In another trip to Japan earlier this month, the 93-year old leader revealed that Malaysia will be seeking assistance from Japanese carmakers including Nissan, Toyota and Daihatsu. This is despite the fact that Daihatsu already has operations in Malaysia via Perodua, and Toyota is of course the parent company of Daihatsu.

“Like the first national car, which started with only 18% local content (and cooperation from) Mitsubishi Motor, we were able to master the whole process of building the car, from design to clay-model and test cars. Today, modern technology is based more on sensors and other things. We need to acquire that also. But initially, we want just to build a car first for the Malaysian market, and then for the world market,” Mahathir was quoted as saying earlier.

The review of the National Automotive Policy (NAP) will be completed by the end of the year and will also take into account the proposed new national car.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • let's say on Aug 14, 2018 at 1:30 pm

    Let say what LGE said is true, that this is a private sector investment, will you support this initiative?

    And, let say if the tax is now higher and car prices is more expensive, will this still consider a “private sector” investment?

    Well-loved. Like or Dislike: Thumb up 57 Thumb down 1
    • Tan Sri Syed Mokhtar shud bring back cheap Suzuki. Nuff said

      Like or Dislike: Thumb up 20 Thumb down 3
      • saiful on Aug 14, 2018 at 2:28 pm

        Actually I kinda prefer if Sime Darby bring back Suzuki. They already represent the brand in other ASEAN market.

        Or maybe Suzuki themselves should consider setting foot here since they already operate motorcycle assembly in Kedah, so why not bring the car division here too?

        Like or Dislike: Thumb up 12 Thumb down 2
        • Singgam on Aug 14, 2018 at 2:46 pm

          Suzuki motorcycles business close shop some 2-3 years ago. What’s left is the superbike division, which is all CBU.

          Like or Dislike: Thumb up 9 Thumb down 0
          • John May 9 Nangis on Aug 14, 2018 at 5:07 pm

            Proton also started out that way. Then later on started begging for money. To date Government has given PRoton like RM20 billion bailout money

            Those are official figures. Unofficial figures, just double that.

            Protiga will start out as private sector then after a while, they will beg for money from gomen

            Like or Dislike: Thumb up 12 Thumb down 6
    • YB Albert on Aug 14, 2018 at 4:15 pm

      Any Tom Dick and Jamal can start Protiga.
      The problem begins when they start asking ” Tun,we have plough hundreds of Juta RM to start protiga,but cant u get LGE to give some R & D grants ? ”
      So,like protong, the grants will be used to pay suppliers instead of actual research.
      The cycle of bad behavior never ends…so the loser…taxpayers,taken for another ride.
      What is the point of tabung Harapan,when u allow protiga to suck taxpayers dry? PH will become Pakatan Halangan very soon.

      Like or Dislike: Thumb up 38 Thumb down 0
  • Digidigi on Aug 14, 2018 at 1:32 pm

    Lol, you are not the one to make decision leh, seems like someone is controlling the khazanah and pnb fund, so he is the one doing decision, not accountant lim

    Like or Dislike: Thumb up 36 Thumb down 3
    • Money comes from MOF Inc. MOF Inc is incorporated. Deswai he says comes from private sector lor. He never denied money will comes from taxpayer, did he?

      Like or Dislike: Thumb up 43 Thumb down 1
  • it should come out from robert kuok’s and vincent tan’s pockets , not khazanah’s

    Like or Dislike: Thumb up 36 Thumb down 3
    • Mikey on Aug 14, 2018 at 3:41 pm

      What happen if opposition say this is sold to Chinese?? Both are Chinese Right even if they are M’sian.

      Like or Dislike: Thumb up 6 Thumb down 2
      • No diff than the then Oppos haranguing the then Gov for selling P1 to Geely lor. Whats fair is fair, the wheels of karma goes around.

        Like or Dislike: Thumb up 10 Thumb down 1
  • LOK CHYI YEU on Aug 14, 2018 at 1:33 pm

    Wonder who will be so generous to fund the third national car for such a small market. Imagine a country with 600k per year and for the price range it can be able to compete in it will be around 30% market share that need to compete with proton and perodua.
    Even u split the sales equally u only have around 60k sales a year.

    How much margin u have for selling this type of entry level car?

    Like or Dislike: Thumb up 31 Thumb down 2
  • Proton oh Proton on Aug 14, 2018 at 1:41 pm

    Maybe another Arab investor instead of donation.

    Like or Dislike: Thumb up 10 Thumb down 10
    • Arabs wud rather invest in this https://paultan.org/2018/08/14/tesla-looking-to-go-private-with-backing-of-saudi-fund/

      Like or Dislike: Thumb up 19 Thumb down 3
    • Raja Celup on Aug 14, 2018 at 6:40 pm

      Better sell camel here its more profitable than sell Ertiga.

      Like or Dislike: Thumb up 4 Thumb down 4
      • vanzwan on Aug 14, 2018 at 7:43 pm

        Camel too high taxed and not enough kick, that’s why it losses to Dunhill & Malboro.

        Like or Dislike: Thumb up 8 Thumb down 1
  • If it is using private fund, why still need to protect it? let it compete in the market la… Do not put the burden onto Rakyat…. As we don need national car anyway…

    Like or Dislike: Thumb up 37 Thumb down 1
  • Use whatever fund for all we care. What we care is distortion of car prices to protect the privately funded car project.

    Like or Dislike: Thumb up 34 Thumb down 1
  • simon on Aug 14, 2018 at 1:55 pm

    OK. FINE.

    Private sector funded.

    but if the NAP is adjusted to “protect” this private funded 3rd national car by inflating prices of other brands….

    sorry, i do not support.

    unless you can prove that it is 1)private funded and 2) will not result in “protectionist” policy for other car brands.

    Well-loved. Like or Dislike: Thumb up 62 Thumb down 1
  • Petoron Sagu on Aug 14, 2018 at 1:56 pm

    Can use private money…. But will government support them and supress other car maker…. Anyway going…people will suffer. No more cheap japan korea china car

    Like or Dislike: Thumb up 24 Thumb down 1
  • Semi-Value (Member) on Aug 14, 2018 at 1:59 pm

    made in malaysia then made in malaysia…why must national this national that

    Like or Dislike: Thumb up 24 Thumb down 1
  • Use private money??? LGE PLEASE DONT BULLSHIT!!!

    Like or Dislike: Thumb up 36 Thumb down 1
  • Anonymous on Aug 14, 2018 at 2:11 pm

    Whats the difference… Perodua : M’sian+Japanese manufacturer… Proton : M’sian+Chinese manufacturer… so called 3rd national Asean car will be M’sian+Indon manufactured. Is it about controlling equity…? This is just TunM ego talking. It is financially not viable nor sustainable.

    If talking about private money to finance it… TunM’s sons are wealthy enough… let them finance their fathers delusions.

    Like or Dislike: Thumb up 37 Thumb down 2
  • barry on Aug 14, 2018 at 2:12 pm

    For me, if its not Govt funding and the prices of current cars taxes and duties to be reduce gradually, why not? I will give support. many disagree but who am i or you to say NO or Yes. :)

    Like or Dislike: Thumb up 4 Thumb down 11
    • Hafiz Hisham on Aug 14, 2018 at 2:29 pm

      Nobita mana boleh caya? Pusing-pusing cakap kuat saja

      Like or Dislike: Thumb up 29 Thumb down 1
  • FireAce on Aug 14, 2018 at 2:14 pm

    Tun (& family) should invest and become majority shareholder + CEO. Maybe then we can have the political power + will to ensure the ProTiga will not go down the wrong path as Proton did.

    The other benefit will be government will think twice before trying to impose rules that obviously giving unfair advantage (that burden the people) to ProTiga because this will give free bullet for the opposition to attack.

    Tun get his wishes and people’s benefit is protected. Win Win situation

    Like or Dislike: Thumb up 6 Thumb down 7
    • xoxox on Aug 14, 2018 at 4:48 pm

      whatever business+politics…it will fail…a lot example already…..

      Like or Dislike: Thumb up 9 Thumb down 1
  • tiadaid (Member) on Aug 14, 2018 at 2:22 pm

    Why do people still believe anything that comes out of this guy’s mouth?

    He’s been caught with his pants down many times before, it’s not funny anymore.

    Like or Dislike: Thumb up 46 Thumb down 2
  • Guan yin ma on Aug 14, 2018 at 2:57 pm

    Just bring in suzuki or rebadge it, bring in the vitara 1.4 turbo and new JIMNY , and i can ensure at least 5k unit sales per month.

    Like or Dislike: Thumb up 5 Thumb down 0
    • Once bitten, twice shy. You think Suzuki want to step here after all the humiliation they suffered? From handling over all their outlets to Proton, thinking they have found a good partner.. Mana tau kena gigit balik.

      Like or Dislike: Thumb up 6 Thumb down 0
  • Ben Yap on Aug 14, 2018 at 4:26 pm

    should set up an organization that monitors new projects from any government. this is to ensure proper funds are used for this project and not false assurance from either party.

    Like or Dislike: Thumb up 4 Thumb down 0
  • John Chan on Aug 14, 2018 at 5:35 pm

    A national car from private investments. How is that going to work?
    A national car gets special tax relief, which is public funds to benefit a few private investors. Private companies aim is to make money and answers to the board. An IPO perhaps?

    Like or Dislike: Thumb up 3 Thumb down 0
  • Gojeng on Aug 14, 2018 at 5:53 pm

    Great! Can you assure us that Protiga will never cause car price to skyrocket like the 90s again? And Malaysians are guaranteed to enjoy foreign brands with quality?

    Sorry for being sceptical, but judging from PH’s failure to fulfill most of their manifestos earlier (and ridicule rakyat in the process), I am not convinced. Plus your boss said Malaysia doesn’t believe in high salary, enough with low cost of living.

    But with high car prices, I don’t know how cost of living can be maintained at manageable level. Perhaps you could explain more to us, the stupid Malaysians.

    Like or Dislike: Thumb up 11 Thumb down 0
  • Ken Yeoh on Aug 14, 2018 at 6:26 pm

    Thailand is Detroit of Southeast Asia and they don’t even have a National Car. PH should liberalize car industries in Malaysia. We don’t have the expertise as through some many years look at Proton what kind of car they have produced and designed. As before Geely taken over, they have the upper hand to do so but making rubbish only.

    Like or Dislike: Thumb up 5 Thumb down 0
  • Same L0rr on Aug 14, 2018 at 6:28 pm

    Yeah yeah yeah.. private sector money. If profit masuk poket. If loss gov bailout..

    Like or Dislike: Thumb up 12 Thumb down 1
  • yesterday, tun m said, it is useless if get high salary but no purchasing power. i hope tun m realize that rakyat support proton with their low quality car in the last 30 years. even rakyat did not have high salary, but forced to buy proton.

    Now i know, tun m and his gang only want cronies become rich and richest.

    Like or Dislike: Thumb up 18 Thumb down 1
    • The rich becomes richer while the poor becomes poorer in New MY. Tahniah!

      Like or Dislike: Thumb up 12 Thumb down 2
      • Nosushi on Aug 15, 2018 at 7:54 am

        Proton low quality cars? Jepunis nowadays no quality. You can name all the gates as you want

        Like or Dislike: Thumb up 2 Thumb down 1
  • AkooIm on Aug 14, 2018 at 6:54 pm

    “Of course we will not use the government money… only after 5 years or so we will using your money to bail them out… but before that we will put some protection for them to compete with others first… you should be patriotic by supporting & buying the national car so they can be the new jaguh kampung…”
    -Minister-

    Like or Dislike: Thumb up 13 Thumb down 0
  • Makaichot on Aug 15, 2018 at 8:39 am

    We dont even know how to build a simple TV what more to talk abt building a CAR ! Today’s consumer electronics n home appliances are almost 100% made by the Foreign companies in malaysia n almost 100% imported from China, why not start something simple with lower investment that it is truely made in malaysia by the Malaysian company ?

    Like or Dislike: Thumb up 2 Thumb down 1
  • Freddy on Aug 15, 2018 at 3:34 pm

    Nobody believes Nobita anymore.

    Like or Dislike: Thumb up 3 Thumb down 0
  • vVivi Zurianti on Aug 15, 2018 at 7:12 pm

    National car has been a curse all these while…..while Malaysian are (still) suffering from the-never-ending karma.

    Anyway, no private company dares or crazy enuf to invest marney on the 3rd national car.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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