“We definitely agree that it should be a level playing field, and that every car company should be paying duties at the same level,” said Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad on a query that national car companies Proton and Perodua enjoy an unfair advantage in the industry.
Speaking after the association’s 1H2020 market review briefing earlier today, she added that “we have highlighted this to the government many times to say that duties on automobiles in Malaysia are very high, and it should be re-looked into. But, it always falls on deaf ears, that’s all I can say.”
This, of course, rides on the common assumption that Malaysia’s two national car companies are subjected to a different set of taxes and duties compared to other foreign brands. That’s not exactly accurate, at least not anymore, as the industry has moved on to an updated system with “customised incentives” rather than outright lower taxes for Proton and Perodua.
Under the current system underlined in the National Automotive Policy (NAP) 2014, all car companies are subjected to the same set of duties and taxes (Proton and Perodua included). However, a “localisation” approach known as Industrial Linkage Programme (ILP) does offer additional customised incentives and rebates that would give certain companies an edge over others.
Designed to spur investments in the sector, the ILP scheme is open to all car companies operating in Malaysia. However, as it involves requirements such as local investment commitments, local content percentage and a few other details not publicly known, it will, quite naturally, benefit the two local players – they would obviously have the highest levels of localisation among all. Foreign brands that have invested heavily also enjoy substantial incentives, or are at least open to.
The ILP may seem to some as a form of a protection mechanism, but as it’s open to all car companies, technically we have already achieved a level playing field for all in Malaysia. This, of course, is up for interpretation and debate among industry players and others looking in, especially on the “customisable” nature of the incentives.
The MAA president also chimed in on this issue. “There were a lot of things that were said at the NAP 2020 announcement that we did not have any clarification for. What we wanted is instead of the incentives being customised, we would prefer it if the incentives are made known to the industry, so that it’s better for us to know what exactly the government requires,” Aishah explained.
With questions moving on to the new national car project (NNCP) and how it would affect the sector, Aishah commented that “the industry’s stance is that having two national cars in Malaysia is already too many. To have a third national car project, I don’t think we need it. But we don’t know the details of the plans for the third national car, so we cannot comment on that.”
“Having national cars is a political decision, so it’s very difficult for me to comment on. We have always lobbied that it should be a level playing field,” she concluded. The government has said that the NNCP is set to continue, and has asked to be briefed on its development and progress.
So, what do you think of all this, folks?
Looking to sell your car? Sell it with Carro.
the whole idea of national car = localisation.
we dont produce patents for car.
Campro engine just adopted 3rd party patents. later put in VVT also 3rd party. Punch CVT also 3rd party.
As a Vision = Localisation for Job Oppurtunities.
We need to have the skills to adopt and design a car with the ready made patents in the global market, as a Designer. Then we need to know how to optimize production cost to deliver better quality product at lower price to stay competitive.
What can we contribute in terms of R&D?
Not really. But it still required high skills management and application knowledge. Engineering Design = Integrity Compliance.
Why not contribute to R&D?
How many times have Malaysia been proud of Malaysian achieving R&D success in other countries? Why can they do it elsewhere but bot in Malaysia? Because there are no such platform in Malaysia. Tauke-tauke and politicians prefers quick bucks thus favouring the dumb economy. This idea has trancends to most Malaysian to see dumb economy as a good thing.
Even more saddening, this has trancends to many engineering undergraduate applicants or students along the way, believing they could only be in the manufacturing industry or the construction industry. They never would had believe as a human being, they have the mind to contribute further up the chain, where they could contribute greatly in R&D.
Occasionally, some of these students got to go abroad which allows them to open uo their mind to possibilities. And thus news today always publish how pround we are of few who excelled overseas. To me we should be ashamed we let such talent benefit other countries. Even more ashamed we failed to make many of the undergraduates realise the true capability of human mind is beyond c&s, m&e, shift engineer, maintenance engineer.
We have a Malaysian specialist, a chief engineer of Honda’s famous SH-AWD system in Japan, doing all sorts of great thing for Honda. Yet we still hear we are not capable of R&D today.
Malaysian, we are not inferior to other people from other countries. Once you worked with them, you’ll realise often than not, we have the advantage of being more gritty and passionate. But most importantly, we are not any less intelligent.
R&D – that’s a university role.
any company can support with tools and equipments/contribute with fund.
Proton and Perodua clearly only playing the Technology Application role.
Just to clarify, we don’t have our own national car. Perodua and Proton are just rebadgers.
Proton is not only a rebadger, it is now a China owned company and uses all Geely cars which are China made
So better we have a third national car that we can call ours.
Ahh the caveman just came out of hibernation from the past 2 decades.
‘All Geely Cars’? Last time I checked the Saga, Persona, Iriz and Exora are still locally made cars. You can guarantee the third national will not be another rebadger like Perodua that is national car in name only?
Third national car only valids if it’s electric. Another ol same internal combustion car company would just be a waste of money. Ppl would buy either Myvi or Saga cs they love em so much anyway.
If small electric cars are going to cost us Rm80k each (realistically), better don’t even start it.
Disagreed every car company should pay duties at the same level
Agreed we don’t need a third national car
MAA talk a lot but until now basic things also they have not sorted out. Like road tax and cc of engine. Honda CRV owner with his RM180k car pays cheaper road tax than my 3.0 Accord which is 20 years old. I am paying RM2000 but my car is worth only RM5k
Pls sort ore important issues please MAA
80k? They need to sell it at 50k bro. That’s why there’s so many Myvis on the road.
Thats what Rakyat Malaysia meant bro
Many people still don’t understand the invisible line of 50k.
In general.
NAP 2020 focused on Digital Industry Transformation.
But secretly,
customized incentives is given?
Well, I think MAA is thinking too slow.
If Proton and Perodua already in the Fair game with foreign cars, only get more subsidized due to participated in the open market programme – ILP?
Then P1 and P2 also can follow exactly what P3 doing.
P3 is getting special subsidies for getting different open market programme only.
In generall. Nobody will be able to changed thier company Vision immediately to adapt to new Policy. It’s the same to Factory upgrade – impossible upgrade an Old Factory to Latest Global Standard immediately – that’s why Perodua built a 2nd Daihatsu certified Global standard at Rawang, while UMW built a new Klang Assembly plant.
the point is that Dr. M is dreaming to push start a whole new standard – it only can be achieved by a whole new company. Other company will progressively to adapt to enjoy the incentives.
Datuk Aishah is 3000 percent correct.We dont need Protiga or proEmpat.
The obsession with these rich man’s toys must end.They are endless money pits.
Thailand has no national cars,but has become the Detriot Of Asia.
The pandemic has shifted preference for used cars below rm30k.The rich are not affected.With such high car taxes,the rakyat has become financial slaves when they are bonded to 7-9 year hp loans.
As of June, 2020
We already Sapu 75% of passenger vehicle sales.
With smaller ckd car market in Malaysia, foreign companies will pull themselves off soon. Like what Suzuki did- which only can survive on affordable cars, which need mass production.
Then, foreign cars will be either CBU Indon, Thailand or Japan. Without any incentives.
Taxing double on a product with standard with appropriate pricing and forcing us to buy a lower quality product..
IMO I’m happy with Geely stepping in on Proton, at least they brought up the product quality, and brought in some new tech also, as its been years since they updated their products..
Lol, why would i want Malaysia to be a small state in from USA? Beside, you know Detroit is not doing well right? Not sure being called detroit of Asia is a compliment or an insult.
…and we don’t need MAA.
Useless MAA… every month only count number of cars sold. and that’s all. redundant organisation.
Tongkat economy. Rakyat suffer.
Only make some individuals rich. Does not benefit the country and its people.
National car. Taxes pushed prices up for everyone else. Rakyat got shit cars, and pay through the nose. And have to bail out using public money.
AP. All we got were AP traders. No value added.
Incentive to create jobs. Only to use foreign workers instead.
Ali baba enterprises. No value added.
Why are we so surprised we aren’t going anywhere as a country, let alone the automotive industry?
Thailand is now the detroit of Asia. Producing more cars than us by a long shot. We are importing more Thai built cars than we are exporting to them (do we actually export anything to them?)
Vietnam’s vinfast uses BMWs as a starting base and now going high end electric. And building up domestic market share in just a few short years.
Our “pride”, the BMW of Asia, sold to a Chinese owner and rebadges Chinese cars.
Here, nothing the lawmakers do is transparent. We still don’t know how the cost of petrol is calculated.
I gotta hands down for Vinfast. They have zero experience in building cars but boy were they FAST. Now aiming to sell in the US. Proton in their 35 years of ‘glory’ didn’t even set foot there yet. Their best product in 35 years? The Proton Boy….X70 I mean. That also the CBU/CKD has issues with the gearbox and absorbers till this very day.
Vinfast gets technical assistance from BMW and GM, so not exactly having ‘zero experience’ like you said. Aiming to sell in US is not the same as being a success in US. Remember Faraday?
..but still there are mindless people buy this X70. it’s just another made in china car (CBU). I rarely see this Binyue in big cities in China, nor even my Chinese work-colleagues buy them…
holly chit mang!!! kau kata sampai hari dont know how to calculate fuel price? gua man yg u baru merangkak keluar bro?
https://paultan.org/2009/02/15/how-fuel-prices-are-calculated-in-malaysia/
2009 sudah ada article disini…
future is bleak
Agree it is a political decision because Perodua is Japanese and Proton is becoming an offshoot of Geely. Develop EV period and remove the national part as it is a waste of limited resources both from private and public and contributes to high vehicle prices to ensure success of a national project.
Having two national cars is two too many. Nowadays if you want to make mass produced cars in a saturated segment, you’re not making money until you make a million cars a year.
Thai has a good strategy when they encourage mass production. But it won’t work in Malaysia since our wages is too high to justify this. In time, car companies will move their production to Cambodia or Laos when Thai wages goes higher.
And why the details of the ILP, a government programme is a secret?
Min the end, what Malaysia should do? Liberalise the car sector so we the consumer has a choice. Having an open ASEAN market would be great to have car factories setup here. I’m not taking about the low end low margin models, more on the high margin expensive models like Mercedes and BMW. We yet to have Audi, Lexus etc here.
I don’t think we’re ready for electric car yet tho, I mean producing them locally, its not something that can be half assed at. If it’s a copy and paste 3rd party I don’t think it’ll be affordable here as those tech are not cheap.
I think she’s right. That’s how it should’ve been.
Really tho, I’d rather they open doors for foreign country to build their cars here, hire locals so we can learn their ways, maybe down the future if we really want to open a new company.
Also till now I still think its literally a barbaric way to force people buy a product thats not up to standard and quality by unreasonably taxing comparators products, how long do you think we human life is, we’re stuck and forced with such experience, like maybe we Could have experience a Toyota if it was appropriate taxed but forced to buy a Persona instead and stuck with it for 5, 10 years like that. Not to forget also the after sales experience. Not that i said its bad, but there is better out there.
Before its a hub to create jobs, its a company that creates a product, what the country does is literally create a product that just barely up to standard(compare to competitor) and forcing it onto our hands, take that money and feed those workers? In the end those who are really unfortunate is consumers imo, which were forced to choose an inferior product when in reality if, the better choice could have been made if it weren’t unreasonably taxed.
Also, I personally believe we could learn alot from foreign car makers if doors were open to them and they were to build cars here with hiring locals, as we were able to learn from those who were actually good at it. Its not that our P1 P2 sux tho, just when compared to others(if it were fairly priced) its obvious its not yet at that level.
Actually I personally think Geely step in on Proton is a good thing, at the very least the product is slightly more up to standards and also updated the product line which haven’t been updated for years.
Set aside China or not, as a consumer, why wouldn’t you want a better product when you could buy a better product, more so when its a product that you use daily and spent hours in it for years to come. Unless you are the one who would spent 30k, 50k, or more on a just good product, when you could buy better at the same price, remember its also a product that you use daily, stuck in it hours everyday for the next coming few years.
I prefer:
– reduce tolls or reduce road tax or reduce car taxes especially since no more subsidy for petrol/diesel and no ceiling price. USD40 per barrels = RON95 @ RM 1.70. When oil price back to USD120, RON95 @ RM5.10???
Third national car is more about economic development rather than car/transportation policy. Kereta terbang … or whatever govt want to develop.
i support Datuk Aishah Ahmad opinion.
Got Proton is good enough, just make it better
Look at VIETNAM they have VINFAST.
Patriotik la skit…nama pun national car…ckp baik2 la…kalu lama sgt pegang satu2 jwtn kita kdg2 lupa diri…lupa daratan…lupa kerakyatan kot…Cintakan kpd negara, tanahair mesti la mengatasi biz interest…
Local content should be fefine as those from asean.its the onky way fir the region yo move forward.
Try buying a Perodua Bezza in Japan or the current Myvi
Perodua Myvi has outgrown Toyota Passo.
Japanese are buying Toyota Raize now.
Please encourage more EV, just look at china now. They started to change, Malaysia still way behind