No gov’t bailout if new national car fails, says MITI

No gov’t bailout if new national car fails, says MITI

The ministry of international trade and industry (MITI) says that the government will not provide any financial support for the new national car. According to Datuk Darell Leiking, there will be no bailout for anchor company DreamEdge should the project not succeed, Bernama reports.

He said that this is because the project is a private initiative, not one carried out by the government. “We are just supporting the ecosystem and this is the way forward. If it fails, that is management failure, product failure. But in this case, the product is clear and they are able to work with Japanese technology and are confident of it. So why should we kill it?” he said.

He added that DreamEdge has given its assurance that it will not seek government funding. “That is why we supported the project, to tell people that we have our trust in this company, just like in many other companies that we trust in doing business today. If they ask for money, we will not support it,” he said.

No gov’t bailout if new national car fails, says MITI

Asked on why the project is being deemed a national car when it is a private initiative, he explained that under the proposed National Automotive Policy (NAP) revision, national cars are now defined as those built in Malaysia by a Malaysian company that employs 90% or more Malaysians.

“We are working to make sure people are benefiting from the private initiatives, jobs are created and new technology is developed. Under our watch, we will not give out incentives easily such as tax incentives, unless the companies qualify for it, whether it is domestic or internationally owned,” he explained.

Last week, it was announced that DreamEdge, a Cyberjaya-based innovation and digital engineering services company, will be the lead company for the new national car, which is expected to be make its market debut in March 2021. The as-yet-unnamed model will be a plus-sized B-segment sedan (initially mentioned as C-segment, and later corrected) equipped with a regular ICE or hybrid powertrain, and will be built via contract manufacturing.

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Anonymous on Aug 16, 2019 at 10:35 am

    PH Govt seems to say what ever they want nowadays. Is this a lie upon a lie..? Govt had already said that no govt funds to be used for the damned stupid 3rd national car project. YET.. they lied and the project would be given R&D funds from the govt… and it now involves a govt link company… which surely uses govt money to partly run it… if not govt funds to buy into that company.

    NOW promising no bail out if unsucessful. YEAH RIGHT… do we still trust what the LYING govt says now..? LIES and MORE LIES is the theme of current PH govt.

    Like or Dislike: Thumb up 54 Thumb down 5
    • Angry Rakyat on Aug 16, 2019 at 12:46 pm

      So why did we bailed out Proton last time? Is it a lie?

      Like or Dislike: Thumb up 27 Thumb down 2
      • YgPrihatin on Aug 16, 2019 at 12:59 pm

        no

        https://paultan.org/2018/02/23/video-proton-is-too-big-to-fail-pm-najib-razak/

        Like or Dislike: Thumb up 6 Thumb down 0
      • Malaysian on Aug 16, 2019 at 1:27 pm

        Yes, i remember they said P1 is not owned by the Gov. They even said it’s a private company but still got bailed out with billions using rakyat’s money. It was BN then. PH is just following?

        Like or Dislike: Thumb up 11 Thumb down 0
      • Brian on Aug 16, 2019 at 2:37 pm

        Nobody denied that Proton was a national car using taxpayer money, same as Perodua. What is the relevance of bringing that up?

        Like or Dislike: Thumb up 5 Thumb down 4
        • Rakyat Malaysia on Aug 16, 2019 at 5:35 pm

          I guess we Msians are phobia of the ‘bailout’ word. Bailout Mas, bailout 1Mdb, bailout Proton, TH bailout… gud weekend all.

          Like or Dislike: Thumb up 8 Thumb down 1
          • Avenger on Aug 16, 2019 at 6:02 pm

            What did you expect? The people change government so they don’t hear bailout again. Mana le tau, now bailout even more. Big mistake picking PH.

            Like or Dislike: Thumb up 7 Thumb down 1
        • Rakyat Voice on Aug 16, 2019 at 6:51 pm

          They said it’s a private company but bailed it out using our money. BN lied to us.

          Like or Dislike: Thumb up 6 Thumb down 3
          • History Bender on Aug 16, 2019 at 10:25 pm

            You got your timelines wrong. BN rescued Proton when it was still nationalised, then it was passed onto DRB Hicom with the guarantee that it must work with a competent partner chosen by BN which they fulfilled that with Geely. There is no lie at all unlike what PH is telling us.

            Like or Dislike: Thumb up 7 Thumb down 2
      • skodamalaysia on Aug 16, 2019 at 3:34 pm

        Hello Datuk Darell, just give paultan AP to sell BYD cars in Malaysia. Thank you.

        Google = BYD

        Like or Dislike: Thumb up 0 Thumb down 0
    • Rozali Idris on Aug 16, 2019 at 2:28 pm

      I really don’t trust what the Government says. Why? Very simple. It is the same people running the show. Only the Cabinet has changed. It is the same lazy people running the show. So no difference now and no difference 5 years ago.

      I don’t know why Anonymous you are surprised. The 1.6 million Government servants are still the same. The are always looking for handouts, bantuan and bailouts. So, why are you surprised?

      Like or Dislike: Thumb up 6 Thumb down 6
      • Agreed! Fully agree! It looks like the Cabinet has changed but look closely at the important roles it is still Madey lackeys that are in control. This coupled with our now toothless DAP ministers who prefer to enjoy the trappings of power. Instead of being watchdogs, now more like running dogs. Even the 1.6million Government servants cannot do anything but to follow orders from their ministers to implement 3rd national car and flying car projects. They can’t even protest because Madey demanded unquestionable loyalty from them. I blame this all on the useless, toothless, and self-serving Cabinet.

        Like or Dislike: Thumb up 10 Thumb down 0
    • YB Kunci Kunta on Aug 16, 2019 at 4:33 pm

      Let them launch.We cant stop them by using force/violence.
      But rakyat can boycott buying the car.
      Once ,the cars keep collecting dusts,with mounting losses….the pressure to close shop will pile up.
      Let us see,is it worth to maintain the richest hobby of starting national cars.JUST DONT BUY.THE HOBBY WILL DIE.

      Like or Dislike: Thumb up 3 Thumb down 0
      • newme on Aug 16, 2019 at 4:50 pm

        How to boycott? They continue jacking up prices of other brands.

        Like or Dislike: Thumb up 5 Thumb down 0
      • Brian on Aug 16, 2019 at 4:53 pm

        Close shop we(taxpayers) have to pay for the losses lah! You think Mumra and Co will foot the bill from their high salaries as ministers? Fat chance!

        Like or Dislike: Thumb up 6 Thumb down 1
  • Spin Too Much on Aug 16, 2019 at 10:36 am

    Exactly YB…. people are benefiting from the private initiatives, jobs are created and new technology is developed.

    National cars are those built in Malaysia by a Malaysian company that employs 90% or more Malaysians. Proton although privately owned, and bailed out again and again. Proton still national car becoz we employ more than 90% Malaysians. So entitled to govt bailout…. pahamm

    Like or Dislike: Thumb up 11 Thumb down 7
    • Is That So? on Aug 16, 2019 at 1:33 pm

      You mean Proton is entitled to bailout becoz they employ more than 90% bumiputeras? Other companies who does not are not entitled?

      Like or Dislike: Thumb up 10 Thumb down 4
      • privileged indy on Aug 16, 2019 at 4:22 pm

        National cars are those built in Malaysia by a “Malaysian company”. Malaysian owned proton

        Like or Dislike: Thumb up 5 Thumb down 0
      • spock1976 (Member) on Aug 17, 2019 at 8:33 am

        Where in his comment is he saying that? Where in the article even? Dont try to make up words.

        Like or Dislike: Thumb up 2 Thumb down 0
    • Yup, this is downright STOOPID.

      1) If it is 100% private-ly owned – then it is 100% up to DreamEdge whether they want to hire any foreigners or not, whether now or in future.

      2) If DreamEdge hire more than 10% foreigners – then the only downside is, it is not a “National Car” anymore. SOO?? So what? It’s just a name! Unless, you’re telling me the National Car will get incentives for being a National Car. In that case – you’re using TAXPAYER MONEY to give incentives to this 100% private company. And ALL profits they keep. What’s the dam point???

      All because of ONE man’s EGO!

      Like or Dislike: Thumb up 9 Thumb down 0
  • taboogen on Aug 16, 2019 at 10:39 am

    as those built in Malaysia by a Malaysian company that employs 90% or more Malaysians.
    Are saying now Honda that was build in malaka as national car also?

    Like or Dislike: Thumb up 13 Thumb down 9
    • One Irrelevant foreigner on Aug 16, 2019 at 12:44 pm

      by a Malaysian company… adui bangang Honda

      Like or Dislike: Thumb up 7 Thumb down 1
    • MyNewToy on Aug 16, 2019 at 2:24 pm

      Design, develop testing and built-in by Malaysia companies shall status as National Car followed per supply chain pyramid.

      Like or Dislike: Thumb up 0 Thumb down 0
      • Mr Suka Syukur Selalu on Aug 16, 2019 at 4:16 pm

        Syukur…. Honda is National Car Malaysia.

        Like or Dislike: Thumb up 10 Thumb down 0
        • MyNewToy on Aug 16, 2019 at 10:12 pm

          You think so? Oh ok, the car totally designs by Malaysia company is which one. Most National project own by DRB Hicom Sdn Bhd (Proton, Modenas, CTRM and many more). They are not GLC/Bumi? – only workers. But Toyota is a national car because UMW share is own by PNB (ASN and ASB) – Malaysian Government.

          Like or Dislike: Thumb up 0 Thumb down 0
  • Mabuk on Aug 16, 2019 at 10:41 am

    Empty talk only! We’ll see in future.

    Like or Dislike: Thumb up 12 Thumb down 0
  • newme on Aug 16, 2019 at 10:43 am

    Yalor, later say bail out done by a government department without the knowledge of the cabinet …. or the bail out is carried out by a company but never tell it’s owned by MOF. Or they will use the term “Grant” or “Additional Investment” instead of “Bail out”.

    Like or Dislike: Thumb up 20 Thumb down 0
  • newme on Aug 16, 2019 at 10:48 am

    “….and will be built via contract manufacturing.”

    Hahaha, nak tiru concept Apple la tu. Thinking if Apple can become most valuable company by just contracting phone, they should be able to overtake Apple with cars kan kan kan?

    Like or Dislike: Thumb up 5 Thumb down 0
  • Henry on Aug 16, 2019 at 10:59 am

    Boleh percaya kah?

    Like or Dislike: Thumb up 7 Thumb down 0
  • Majority on Aug 16, 2019 at 11:09 am

    Another failure in the making. All the same type as john. Pemalas, want everything free in life

    Like or Dislike: Thumb up 4 Thumb down 3
  • pomen on Aug 16, 2019 at 11:19 am

    today: ‘no bailout if they fail’
    later: ‘we will loan/inject rm1bil for this project’

    hahaha

    Like or Dislike: Thumb up 16 Thumb down 0
  • StingerKia on Aug 16, 2019 at 11:30 am

    Yayaya, before ph win they also said many things they will change and not repeating what previous gov did, but after win many things seems like follow the old way as it was… How can we trust “No gov’t bailout if new national car fails.” statement is true in future? Local market is struggling and they still fantasizing their ‘new national car’ project… (facepalm)

    Like or Dislike: Thumb up 10 Thumb down 0
  • Chavez on Aug 16, 2019 at 11:37 am

    Government owned the company, if government don’t bail out then creditors can sue to declare government is bankrupt for defaulting their debts. Does MITI thinks we’re all stupid and don’t know the implications? No way they won’t bailout.

    Like or Dislike: Thumb up 14 Thumb down 0
    • aqmal on Aug 16, 2019 at 10:47 pm

      Exactly Chav. Government owned the 1MDB, if government don’t bail out then creditors can sue to declare government is bankrupt for defaulting their debts.

      The kleptos spent birkins, Rakyat suffered.
      when Rakyat asked, the kleptos said Donno.

      Like or Dislike: Thumb up 5 Thumb down 2
      • Sick & Tired on Aug 18, 2019 at 11:22 pm

        This is an automotive blog. You want to talk about 1MDB, birkins, you got to those sites. Don’t bring your irrelevant PH propaganda here. Keep this site clean.

        Like or Dislike: Thumb up 0 Thumb down 0
  • Abraham Lincoln on Aug 16, 2019 at 11:49 am

    Their deceptive skills still at learning curve. Only diehard supporters and people with vested interests will continue to believe them. They can fool all the people some of the time, and some of the people all the time but they cannot fool all the people all the time.

    Like or Dislike: Thumb up 7 Thumb down 0
  • Angry Rakyat on Aug 16, 2019 at 11:54 am

    So why did we bailed out Proton last time?

    Like or Dislike: Thumb up 4 Thumb down 0
  • dong gor on Aug 16, 2019 at 12:01 pm

    All this no bail base on verbal?
    As long as this is government initiated, a lot of twist and turns as one wishes la… not the first time we see this in Boleh land.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Can we believe the words come out from an UTUN+VTUN+STUN government?

    Like or Dislike: Thumb up 11 Thumb down 0
  • Heskey on Aug 16, 2019 at 12:24 pm

    In US average McDonald’s worker can drive a Camry. Where is government promise to reduce car prices?

    Like or Dislike: Thumb up 6 Thumb down 4
  • ahmad Kamil on Aug 16, 2019 at 12:33 pm

    we know who give the bailout and grants. the person who controls the DreamEdge crony company. this NNCP will fail for sure. mark my word.

    Like or Dislike: Thumb up 7 Thumb down 1
  • There’s already talks of bail out? Is this 1999?

    Like or Dislike: Thumb up 1 Thumb down 0
  • Amran on Aug 16, 2019 at 2:18 pm

    Rakyat malaysia support proton perodua, dont buy NNCP

    Like or Dislike: Thumb up 3 Thumb down 0
  • Ben Yap on Aug 16, 2019 at 2:18 pm

    if new national car fails, money is lost, who is going to pay back?

    Like or Dislike: Thumb up 5 Thumb down 0
  • john is otak batu on Aug 16, 2019 at 5:05 pm

    Dear Datuk Darell Leiking,
    “Parrot” minister like u r disappointing rakyat by following that old man’s ego on wasting rakyat’s money, which is nothing to do with NATIONAL INTEREST that they had elected this gomen to “save” the country. Sorry to say angry rakyat already lost confidence. Bye!

    Like or Dislike: Thumb up 4 Thumb down 0
  • Tyrael on Aug 17, 2019 at 10:52 am

    Sad that they use $ to built new car rather than improving current public transport. Sigh…

    Like or Dislike: Thumb up 2 Thumb down 0
  • vVivi Zurianti on Aug 17, 2019 at 12:27 pm

    What is “no-bail-from govt” assurance from the mouth of minister??

    Even manifesto, Aku-janji, all dicapati without blinking. All hot air from the G.

    Maybe one day cow will actually fly…

    Like or Dislike: Thumb up 3 Thumb down 0
 

Add a comment

required

required