What makes a national car company? These are the six criteria required by the gov’t, says MARii’s Madani

What makes a national car company? These are the six criteria required by the gov’t, says MARii’s Madani

The big news from last week was the naming of the anchor company for the new national car project by the government. DreamEdge got the nod ahead of other bidders and will now work towards showing a prototype in March 2020, ahead of a market debut in March 2021. Daihatsu will provide technology support, but it’s a business deal without equity partnership from the Japanese.

Aside from stating it will be an “exclusive model with a new approach to segmentation,” few specific details were divulged at last week’s briefing. However, DreamEdge CEO Khairil Adri Adnan did reveal that it would be a plus-sized B-segment sedan (originally mentioned as a C-segment) equipped with a regular ICE or hybrid powertrain, The car will be built via contract manufacturing.

The announcement brought about more questions than answers, although the government and DreamEdge will be meeting the press the end of this month to show a mock-up of the new car. Hopefully, we’ll know more about the car then. For now, the two big questions are: who is DreamEdge, and what makes a national car? We’ve already shed light on DreamEdge in a separate piece last week; now here’s the criteria needed to be a national car in Malaysia.

According to Datuk Madani Sahari, CEO of the Malaysia Automotive Robotics and IoT Institute (MARii), a company needs to fulfil six criteria to qualify as a national car company. “The six criteria are more important than the word ‘national’. We can exchange the word national to Malaysian car company or Madani car company or Anthony car company,” Madani said, referring to our man Anthony Lim.

“The word ‘national’ actually means nothing, what’s more important is that it fulfils the six criteria,” he stressed. So, what are the six things that a car company needs to be national?

“The first criteria is ‘privately funded’ with no government money whatsoever. Number two is that Malaysian equity must be higher – a Malaysian company. Number three, the company’s supply chain must be 75% Malaysian, minimum,” Madani said, explaining that vendors and dealerships are part of a car company’s supply chain. “Number four, manpower. We only allow 2% foreign manpower, 98% must be Malaysian,” he added.

Moving on, the MARii CEO said that the fifth criteria is that the national car “has to align with our definition of next-generation vehicles as in the National Automotive Policy.” The NAP revision, which was reported to be under review in June last year, was expected to be announced in Q1 this year. Then in April, it was announced that the revised policy announcement would be shifted to the second quarter. We’re now in Q3.

Madani did not elaborate on what makes a next-generation vehicle, but said that the definition will be ready by early 2022, and implementation will start from 2025.

The last criteria is significant research and development (R&D) contribution. “Basically, the best is having the entire R&D in Malaysia. However, we do give special exemption now for the platform, because we know that the platform is something carmakers share. Other than the platform, it can be done in Malaysia. That’s the minimum,” he explained.

To recap, the six criteria are being privately funded, higher Malaysian equity, majority Malaysian supply chain, majority Malaysian manpower, in-line with the government’s definition of next-generation vehicles (to be revealed in the NAP revision) and significant R&D contribution. More on DreamEdge here.

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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

  • panjang on Aug 13, 2019 at 5:33 pm

    Hahahahahahah…
    Thank you PT for making me laugh this evening.

    Like or Dislike: Thumb up 21 Thumb down 3
    • Madani on Aug 13, 2019 at 6:44 pm

      What is funny?

      Like or Dislike: Thumb up 4 Thumb down 4
      • Pendek on Aug 13, 2019 at 7:08 pm

        He is laughing, Madani gave so many new jobs.

        Like or Dislike: Thumb up 2 Thumb down 13
        • He is laughing, Madani gave so many new opportunities to new cronies.

          *Fixed for you there mate.

          Like or Dislike: Thumb up 9 Thumb down 4
          • Madani worked with old cronies so no wonder.

            Like or Dislike: Thumb up 5 Thumb down 0
          • Here the proof. See

            https://paultan.org/2015/07/02/tun-mahathir-takes-a-swipe-at-mai-on-auto-policies/

            Like or Dislike: Thumb up 6 Thumb down 0
          • Darren on Aug 14, 2019 at 7:47 pm

            LGE told us this lie
            https://paultan.org/2018/08/14/third-national-car-will-use-private-sector-money-lge/

            Like or Dislike: Thumb up 5 Thumb down 5
          • Warren on Aug 15, 2019 at 8:02 am

            Najib lied to us for 30% cars price reduction which we never get.

            Like or Dislike: Thumb up 7 Thumb down 5
        • Danny on Aug 13, 2019 at 11:27 pm

          Since the first criteria is ‘privately funded’ with no government money, does it mean that 3rd national car can be owned by the Gov as long as it is ‘privately funded’?

          So LGE is correct.

          Like or Dislike: Thumb up 6 Thumb down 1
        • Fake Proton on Aug 14, 2019 at 12:11 am

          Is Proton a national car any more then ? If not , remove all its tax benefits and slap it with anti dumping tariff

          Like or Dislike: Thumb up 7 Thumb down 5
          • Vader on Aug 14, 2019 at 4:15 pm

            Proton still got Saga, Iriz, Persona, Exora so it’s still a national car. While Perodua cars are all rebadged yet they still continue to receive tax benefits and not slapped with anti dumping tariffs.

            Like or Dislike: Thumb up 9 Thumb down 5
    • Asian right hand on Aug 13, 2019 at 6:51 pm

      Most important criteria is…..make sure right hand drive. No left hand drive!!! This is asian country, not western. So right hand drive is for us.

      Like or Dislike: Thumb up 4 Thumb down 4
      • Amran on Aug 13, 2019 at 9:17 pm

        Philipine left hand drive bro.. Asean..

        Like or Dislike: Thumb up 2 Thumb down 0
        • As long the cars are built here in Malaysia. For export to global market 193 countries, doesnt matter its right hand drive, left hand drive or No hand drive car.

          Tens of thousands jobs created and gigantic multiplier effect for our nation economy. Dont let our kampung mindset limit potential and opportunity to more contracts.

          Like or Dislike: Thumb up 9 Thumb down 2
          • Celup King on Aug 14, 2019 at 11:35 pm

            How does tens of thousands of more jobs for foreign workers help to unleash our potential and opportunity and what they are doing currently?

            Like or Dislike: Thumb up 4 Thumb down 1
        • Benard on Aug 14, 2019 at 8:50 am

          As is vietnam which is also left hand drive

          Like or Dislike: Thumb up 2 Thumb down 0
    • skodamalaysia on Aug 13, 2019 at 11:18 pm

      Just rebadge/ckd BYD. End of story.

      Like or Dislike: Thumb up 2 Thumb down 0
  • Chris on Aug 13, 2019 at 5:33 pm

    Malaysian don’t need 3rd national car.

    When will the Gov listen?

    Malaysia Baru, Tak De Harapan

    Like or Dislike: Thumb up 40 Thumb down 13
    • Bangle on Aug 13, 2019 at 6:51 pm

      Malaysian don’t need P1 & P2 yet most on the roads are them. Why would it be different? Besides, P3 may provide electric cars where P1 is still unable to produce today.

      Like or Dislike: Thumb up 21 Thumb down 21
      • Fordist on Aug 13, 2019 at 10:28 pm

        Expensive electric car whose owners cannot afford to replace the batteries? Yeah I can see that flooding the roads and taking over from P1 & P2. *slow clap*

        Like or Dislike: Thumb up 3 Thumb down 0
        • Elon Musk on Aug 14, 2019 at 12:33 pm

          Deswai P3 is here to provide cheaper alternative of electric cars.

          Like or Dislike: Thumb up 8 Thumb down 4
          • Vader on Aug 14, 2019 at 4:13 pm

            It no way to be cheaper becoz the battery is expensip.

            Like or Dislike: Thumb up 8 Thumb down 5
      • Bangle Aduh on Aug 14, 2019 at 10:25 am

        try reducing excise duty for non-national car (remove protection for P1 & P2), see which cars become majority on the road.

        While why do we need P3 to launch hybrid powertrain when we already have so many brand with hybrid and even full EV already in malaysia?

        Unless they can produce hybrid and sell it to us for rm30-50k (Saga-Myvi range)

        Like or Dislike: Thumb up 3 Thumb down 1
      • Schreyer on Aug 14, 2019 at 10:55 am

        So right bro. You wouldnt want to be Nokia in this age of smartphone. this oso consistent with our National Blue Ocean Strategy ( NBOS)

        Like or Dislike: Thumb up 5 Thumb down 0
      • Chris on Aug 14, 2019 at 11:08 am

        Bodoh tu simpan sikit.

        Without NAP, we won’t drive P1 and P2. You will drive P1 Iriz or P2 Myvi when a VW Polo or Mini is priced at RM55K?

        Since we have P1 and P2, improve them! Why create a 3rd one?

        So…Bodoh tu simpan sikit

        Like or Dislike: Thumb up 7 Thumb down 8
        • Bangle on Aug 14, 2019 at 12:45 pm

          Even without NAP, can you afford the cheapest electric car in Malaysia? P3 is to fill that gap. You think people create company without purpose?

          Use your brain sikit before bashing.

          Like or Dislike: Thumb up 9 Thumb down 10
  • Ex-VGM staff on Aug 13, 2019 at 5:50 pm

    Madani made up those criterias to suit Daihatsu.

    Like or Dislike: Thumb up 21 Thumb down 0
  • badak on Aug 13, 2019 at 5:58 pm

    With Daihatsu technology for the third national car company, Proton will be game over since Proton is using unproven China technology. Japanese technology have been proven and trustable

    Like or Dislike: Thumb up 7 Thumb down 26
    • Logical Deduction on Aug 13, 2019 at 7:26 pm

      Japanese technology have been proven and trustable because it’s ancient and outdated. Japan should go back to using Abacus follow your logic. It’s proven and trustable for 5000 years.

      Like or Dislike: Thumb up 17 Thumb down 20
      • English Teacher on Aug 13, 2019 at 11:00 pm

        Learning Abacus is better than learning Calligraphy. At least using Abacus helps with Arithmetic.

        Like or Dislike: Thumb up 8 Thumb down 3
      • Stupid Basher on Aug 14, 2019 at 12:37 pm

        Japanese tech is ancient? Are you kidding? They have techs you never seen here yet.

        Like or Dislike: Thumb up 8 Thumb down 5
        • JOACHIM on Aug 14, 2019 at 7:45 pm

          Enlighten us what new techs do they have that the Europeans is not using already?

          Like or Dislike: Thumb up 6 Thumb down 8
          • Stupid Basher on Aug 15, 2019 at 8:33 am

            I said here, not European. One example is their battery tech. Do you know it was Japanese that invented the world’s first dry cell battery? Now they even invented water powered battery! Which can be used in emergencies like floods or earthquakes. This is only one example, there are lots more. So bashers should use their ‘logical’ brain before bashing, it only shows their stupidity and ‘katak bawah tempurung’ mentality.

            Like or Dislike: Thumb up 11 Thumb down 9
          • JOACHIM on Aug 15, 2019 at 7:52 pm

            They may have invented but were they will to share it? Heck no! Stingy as crap! Look at them Europeans, open with anything they invented and willing to share what they know. Japanese will want to milk their technology until kingdom come. Go fly a Japanese kite you fanboy!

            Like or Dislike: Thumb up 8 Thumb down 6
          • Safety First on Aug 16, 2019 at 2:48 pm

            EU uber alles. Jap can sniff my skids

            Like or Dislike: Thumb up 2 Thumb down 2
          • Local Fanboy on Aug 17, 2019 at 9:15 am

            You asked and now said they are stingy? Better than your people’s syok sendiri attitude, can’t invent but only can bash. Go fly your local kite.

            Like or Dislike: Thumb up 0 Thumb down 2
          • JOACHIM on Aug 18, 2019 at 11:28 pm

            How do anyone know if inventions are made? Because it is shared. If some remained stingy so do anyone know they invented anything? Germans have a proverb; if a tree fell in a forest with nobody around, does it make a sound? The same, nobody knows if Japan invented anything because nobody knows anything about it. So stop blaming Germans for flying kites, they had been flying gliders while you still fly paper planes.

            Like or Dislike: Thumb up 0 Thumb down 0
    • Beefimaru on Jul 09, 2022 at 2:12 pm

      I am so amazed with people that say statements but do not understand what his statement means. Your fact checking must be from 30 years ago

      Like or Dislike: Thumb up 0 Thumb down 0
    • Beefimaru on Jul 09, 2022 at 3:09 pm

      How can Geely be using unproven technology? how do you measure that? If you comparing that. Please name me one latest Japanese Technological

      Like or Dislike: Thumb up 0 Thumb down 0
  • Celup King on Aug 13, 2019 at 6:04 pm

    The real 6 main criteria:
    1) Can it fly?
    2) Can it make use of our plentiful bamboo?
    3) Does it have a crony attached?
    4) Can it make my cronies richer?
    5) Can it rebadge an existing car?
    6) How much money will it rob the rakyat?

    Like or Dislike: Thumb up 53 Thumb down 20
  • Anonymous on Aug 13, 2019 at 6:10 pm

    Definition of ‘Next-Gen’ vehicle to be known by 2022. GE15 by 2023 with new Govt takeover. Implementation by 2025.

    New Govt then will have ‘3rd National Car’ be disbanded by ‘Govt owned company’ AND/OR be opened for takeover by private company..!

    Like or Dislike: Thumb up 12 Thumb down 2
  • Now i’m confused whether Proton is our national car or not.

    Like or Dislike: Thumb up 20 Thumb down 16
    • Proton: Official Distributor For Geely Cars on Aug 13, 2019 at 7:00 pm

      It’s not. It is now just a distributor for Geely

      Like or Dislike: Thumb up 11 Thumb down 17
      • Sendiri tanya sendiri jawab pulak!

        Like or Dislike: Thumb up 15 Thumb down 17
        • Proton: Official Distributor For Geely Cars on Aug 13, 2019 at 8:31 pm

          Im not john la bodo

          Like or Dislike: Thumb up 18 Thumb down 15
          • Siapa makan cili dia terasa pedas. Kenapamu terasa pedas?

            Like or Dislike: Thumb up 5 Thumb down 7
      • rally_fan (Member) on Aug 13, 2019 at 8:30 pm

        persona, saga, iriz, preve, exora = proton developed platforms running malaysian engines. x70= geely model rebadged as proton … and this means geely distributor? need to get your maths checked man.

        Like or Dislike: Thumb up 7 Thumb down 0
        • Perodua troll and failed logic, berpisah tiada.

          Like or Dislike: Thumb up 6 Thumb down 1
        • Confused Jugak on Aug 14, 2019 at 8:02 am

          Madani says must be ‘privately funded’ with no Gov money but Proton was funded with Gov money. So is Proton our national car?

          Like or Dislike: Thumb up 2 Thumb down 0
        • potato on Aug 14, 2019 at 2:03 pm

          Proton will no longer run on Proton developed engines in the future, they cannot just cut the production of old Proton cars just because Geely took over, it will take around 5 years to stop existing proton production so they can focus on Geely Rebadge models fully.

          Like or Dislike: Thumb up 1 Thumb down 0
      • redpilled on Aug 14, 2019 at 9:21 am

        Just like p2 is distributor for Daihatsu.

        Like or Dislike: Thumb up 6 Thumb down 1
      • Aura89 on Aug 14, 2019 at 6:00 pm

        Lets stay on topic and keep cool heads please ?
        No need for yet another thread full of crap to sift through.

        Like or Dislike: Thumb up 2 Thumb down 0
  • Amran on Aug 13, 2019 at 6:15 pm

    To minimize market share cannibalization, our national car industry must be segmented to serve different customer class. Eg. P1 premium, P2 exec and P3 basic.

    Like or Dislike: Thumb up 7 Thumb down 0
  • Jahanam on Aug 13, 2019 at 6:27 pm

    1st criteria already hancus…..

    Like or Dislike: Thumb up 7 Thumb down 0
  • pomen on Aug 13, 2019 at 6:58 pm

    6 criteria:
    -gov will inject the fund(soon)
    -make crony rich
    -same as above
    -same as above
    -same as above
    -same as above

    Like or Dislike: Thumb up 21 Thumb down 4
  • transformer on Aug 13, 2019 at 7:02 pm

    most important criteria IS NOT USING RAKYAT MONIES!

    rakyat already tired of Gov using Rakyat Monies(aka grants) to make Proton floats since 1981, yet household debt from normal rakyat are increasing from year to year….

    Like or Dislike: Thumb up 21 Thumb down 1
  • vVivi Zurianti on Aug 13, 2019 at 7:29 pm

    Add one more criteria…

    7) I help you, you help me (cari makan)

    Like or Dislike: Thumb up 13 Thumb down 0
    • Amran on Aug 13, 2019 at 9:18 pm

      Mahathir lastly using najib’s quote..

      Like or Dislike: Thumb up 2 Thumb down 1
      • Lets See on Aug 14, 2019 at 12:37 am

        What? “You would have to jail me before your cronies & sons continue to prey over Malaysia once again”?

        Like or Dislike: Thumb up 5 Thumb down 5
        • No Worries on Aug 14, 2019 at 1:45 pm

          Don’t worry, your time will be soon along with your other cronies.

          Like or Dislike: Thumb up 6 Thumb down 5
          • Norlia on Aug 14, 2019 at 7:19 pm

            one man’s crony is another man’s entrepreneur. in PH Mesia, everything is halal as long pay money.

            Like or Dislike: Thumb up 4 Thumb down 0
  • aiks, this fella switch job again ka

    Like or Dislike: Thumb up 1 Thumb down 0
  • Amran on Aug 13, 2019 at 9:15 pm

    7th is rakyat money

    Like or Dislike: Thumb up 3 Thumb down 0
  • seancorr (Member) on Aug 13, 2019 at 9:32 pm

    Wait 6 more months and this DreamEdge CEO will be upgraded to become a Datuk and few more years down the road, a Datuk Seri.

    Like or Dislike: Thumb up 8 Thumb down 0
  • bontot on Aug 13, 2019 at 9:35 pm

    adoi..u tengok lia punya muka

    Like or Dislike: Thumb up 2 Thumb down 0
  • Semi-Value (Member) on Aug 13, 2019 at 11:39 pm

    eh, my roti canai when you make as national roti canai? i want speciel status

    Like or Dislike: Thumb up 3 Thumb down 0
  • kalam on Aug 14, 2019 at 8:51 am

    Yes please support Malaysia local vendor and Malaysia worker skill development. Many of P1, P2 engineers will update their CV because now they will have the 3rd option.

    Like or Dislike: Thumb up 2 Thumb down 0
  • 4G63T DSM on Aug 14, 2019 at 10:47 am

    I’m confused.

    Can someone enlighten me on what Madani’s contribution thus far to our automotive industry?

    Like or Dislike: Thumb up 2 Thumb down 0
    • Aura89 on Aug 14, 2019 at 3:44 pm

      He revived our “auto” (read: crony) industry by convincing his members to vote for PH.

      Like or Dislike: Thumb up 5 Thumb down 2
  • Ben Yap on Aug 14, 2019 at 11:19 am

    the 7th hidden criteria. it’s who you know, not what you know.

    Like or Dislike: Thumb up 4 Thumb down 1
  • PetrolHead on Aug 14, 2019 at 11:40 am

    Proton is a national car because it has eaten so much taxpayers’ money and wasted taxpayers’ time servicing and repairing their cars.
    Tun Madhatter is obsessed with cars, so wants to set up more and more car companies and waste more taxpayer money. Mark my words, sooner or later, Perotiga will need a bailout of sorts – either soft loans or grants or tax privileges or all of the above.
    In the election campaign, he said he wants to be given a chance to correct his past errors. However now, it appears that not only has he not fixed the old errors, he is committing more errors of the same kind. Pakatan Harapan has become Putus Harapan. So sad!

    Like or Dislike: Thumb up 5 Thumb down 0
  • Johnny on Aug 14, 2019 at 2:35 pm

    Sounds like a bloody crony job.

    Like or Dislike: Thumb up 5 Thumb down 5
  • Unbelievable sound like trump… Make malaysia great again.

    Guess its not easy to be national car with the constraints like
    – the company’s supply chain must be 75% Malaysian, minimum,”
    – Manpower. We only allow 2% foreign manpower, 98% must be Malaysian,”

    No good for the company development and cost control.

    UNBELIEVABLE. Hopefully this is FAKE NEWs from Paultan.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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