Yesterday, finance minister Lim Guan Eng said the third national car project will be funded by the private sector instead of using public funds. However, the Malaysian Chinese Association (MCA) has urged Lim to provide additional guarantees – in black and white – because merely assuring the public on the backers is not enough.
“Whether Proton is owned by private companies or not, during the 30 years that Proton was in existence, ordinary Malaysians had to bear as much as RM360 billion in the form of higher car prices and its correspondingly higher loans, higher car insurance premiums and higher spare parts costs. Our finance minister has to guarantee that no protectionism will be imposed that can cause car prices to increase,” MCA deputy president Datuk Seri Wee Ka Siong claimed in a statement, as reported by The Star.
Wee added that although Proton was completely privately owned in 2016, the government had no choice but to bail it out with a RM1.5 billion soft loan. This was so that the national car company could repay its debts to vendors and save an estimated 30,000 jobs in the company, including those in its supply chain.
He added that Lim should also guarantee that the third national car project will not be bailed out by the government via direct loans, grants or guarantees should it suffer financially. “There should not be any special treatment given to the privately owned third national car company,” said Wee.
“Nor should there be any cross-subsidy to their owners indirectly as what had happened when a government fund was forced to buy a building at a very high price from the firm that helped bail out Perwaja steel. If the minister can make those additional guarantees in writing, then the third national car project should and must enjoy the full support from all Malaysians, including myself,” Wee added.
Meanwhile, 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.”
The project has not sit very well with the public and several politicians, but if the private sector is willing to invest in the project, perhaps the thought isn’t that scary after all. In any case, the third car project, which has been earmarked for a 2020 launch, will be reviewed together with the National Automotive Policy, which will be completed by end-2018.
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AI-generated Summary ✨
Comments generally support the idea that the new national car project should avoid government bailouts, protectionism, and subsidies, emphasizing the importance of private sector funding and fair competition. Many criticize past government interventions, protectionist policies, and the use of taxpayer money, arguing they inflated car prices and stifled industry growth. Several comments highlight that Perodua's success stems from Japanese backing, not government support, and warn against unnecessary protectionism that could increase costs for consumers. There’s frustration with political dynamics, with some praising Wee Ka Siong for speaking out against potential government interference. Overall, commenters favor a market-driven approach, emphasizing quality, innovation, and private investment over protectionist policies and government bailouts. Sentiments range from supportive to critical, with a common call for transparency and rational policies.