“The government should be clear about its plans for automotive policy. Technical standards on imports to ensure passenger safety are welcome but other barriers to trade, including taxes and duties, designed to protect Malaysia’s domestic industry should be avoided,” he said in a statement.
Adli also challenged the claim that Malaysia’s car industry was at an “infant” stage.
He said Proton and Perodua had been in the market for at least 33 years and 24 years respectively.
“Perodua itself has grown so much that now it has the highest market share at 39.8 per cent for passenger vehicles and sold a total of 204,887 units in 2017 alone which surpasses all imported cars.
“Proton came third after Honda, with 13.8 per cent of market share for passenger vehicles and 70,991 units sold in 2017. These facts prove that there are flaws in an infant-industry argument. How long should our automotive industry be considered as an infant?” he asked.
Regarding the proposal for a third national car, Adli said he welcomed new players coming into the automotive industry if and only if the government stayed away from the market.
Adli also challenged the claim that Malaysia’s car industry was at an “infant” stage.
He said Proton and Perodua had been in the market for at least 33 years and 24 years respectively.
“Perodua itself has grown so much that now it has the highest market share at 39.8 per cent for passenger vehicles and sold a total of 204,887 units in 2017 alone which surpasses all imported cars.
“Proton came third after Honda, with 13.8 per cent of market share for passenger vehicles and 70,991 units sold in 2017. These facts prove that there are flaws in an infant-industry argument. How long should our automotive industry be considered as an infant?” he asked.
Regarding the proposal for a third national car, Adli said he welcomed new players coming into the automotive industry if and only if the government stayed away from the market.
“In principle; we should not prevent any market player entering the industry if they have the capacity to do so.
“But, the government needs to stay away from the market and should not involve itself directly or indirectly in the process of setting up a third national car,” he said.
Instead, he argued that the government should focus on promoting competition.
“There are still many ways to ensure the current local automotive industry remains competitive, without setting up a new market player. One of the ways is to reduce excise duties on imported cars to reduce prices and motivate local car manufacturers to produce better quality products.
“The government needs to have a clear mind on which direction that they are planning to go. Malaysia should be open to trade and look to competition, rather than direct government support, to develop a competitive domestic car industry,” he said.
“But, the government needs to stay away from the market and should not involve itself directly or indirectly in the process of setting up a third national car,” he said.
Instead, he argued that the government should focus on promoting competition.
“There are still many ways to ensure the current local automotive industry remains competitive, without setting up a new market player. One of the ways is to reduce excise duties on imported cars to reduce prices and motivate local car manufacturers to produce better quality products.
“The government needs to have a clear mind on which direction that they are planning to go. Malaysia should be open to trade and look to competition, rather than direct government support, to develop a competitive domestic car industry,” he said.
In other words, don't bloody use our (taxpayers') money to uselessly invest in someone's hobby.
Proton has been and until recently, still a disaster, selling only about 70,991 units compared to Perodua's 204,887 units. Thailand exports over 1 million units of automobile.
Proton is 33 years old and Perodua 24 years. Malaysia's car industry is not an infant industry that requires protection. It just cannot perform to world standards, not even with neighbour Thailand but least of all with South Korea which was in a worse economic situation to Malaya-Malaysia at our starts.
Should Malaysians carry Proton’s burden or allow that company to compete at its own capacity, like was done by Perodua.
If Perodua could become the top car marque in the country, there is really no excuse for Proton not to achieve the same.
Leave the automobile industry to private enterprises. Mahathir should stay out unless he wants to use his OWN money and not Malaysian taxpayers' money.
That way, it should prevent a certain powerful "enthusiast" from meddling-interfering-disrupting the professionals in their work too.
But the BEST political statement thus far for 2018 goes to IDEAS economist Adli Amirullah who demolished Mahathir's argument for a new national car to help develop engineering expertise and to protect our so-called infant-industry with his:
“Proton came third after Honda, with 13.8 per cent of market share for passenger vehicles and 70,991 units sold in 2017.
These facts prove that there are flaws in an infant-industry argument. How long should our automotive industry be considered as an infant?”
(2) BEST political statement 2018 (2).
(3) BEST political statement 2018 (3).
(4) BEST political statement 2018 (4)
(5) BEST political statement 2018 (5)
(6) BEST political statement 2018 (6)
(7) BEST political statement 2018 (7)
(8) BEST political statement 2018 (8)
(9) BEST political statement 2018 (9)
(10) BEST political statement 2018 (10)
(11) BEST political statement 2018 (11)
(12) BEST political statement 2018 (12)
(13) BEST political statement 2018 (13)
(14) BEST political statement 2018 (14)
(15) BEST political statement 2018 (15).
(16) BEST political statement 2018 (16).
(17) BEST political statement 2018 (17).
(18) BEST political statement 2018 (18).
(19) BEST political statement 2018 (19).
(1) WORST political statement 2018 (1)
(2) WORST political statement 2018 (2)
Related:
(1) BEST political statement 2018.(2) BEST political statement 2018 (2).
(3) BEST political statement 2018 (3).
(4) BEST political statement 2018 (4)
(5) BEST political statement 2018 (5)
(6) BEST political statement 2018 (6)
(7) BEST political statement 2018 (7)
(8) BEST political statement 2018 (8)
(9) BEST political statement 2018 (9)
(10) BEST political statement 2018 (10)
(11) BEST political statement 2018 (11)
(12) BEST political statement 2018 (12)
(13) BEST political statement 2018 (13)
(14) BEST political statement 2018 (14)
(15) BEST political statement 2018 (15).
(16) BEST political statement 2018 (16).
(17) BEST political statement 2018 (17).
(18) BEST political statement 2018 (18).
(19) BEST political statement 2018 (19).
(1) WORST political statement 2018 (1)
(2) WORST political statement 2018 (2)
Aiyah, why the big fuss again when Ceasar still hopes for a National Car? He wants to remember back his childhood days relishing in the glamour of his own car.
ReplyDeleteYou argue till cows come home also ain't going to stop him from trying to relive his childhood memories.
Someone have the guts and tell Ceasar about having an alternative he can play back and relive back his memories.
And that alternative is having a Malaysian Toy Car Model TDM 1 Ver. 1.0
We also drives foreign cars. Got many problems also. But people just accept.
ReplyDeleteAlways very critical Abt Proton. Proton need to give free replacement for defective items. Problem solved.
IDEAS economist Adli Amirullah who demolished Mahathir's argument for a new national car to help develop engineering expertise and to protect our so-called infant-industry proves one gets idiot(educated) even when that idiot carries numerous titled(spurious??).
ReplyDeleteThe product life span of Proton & Perodua DOESN'T equate to the development of the m'sia car industry!
The deciding criteria IS the level of genuine local inputs, in automotive engineering designs & related fuel (fossil/regenerative) researches, that have been integrated into the local car industries.
Assembly, in fact rebadging a foreign car brand, IS indeed indicating that the m'sia auto industries r indeed still stuck within the infant-industry stage!
Especially after so many yrs of financial inputs & incentives.
Judging from the infamous auto window failure of Proton, one can easily concludes that Proton has not even reaches the maturity plateau of the renowned inverted bathtub economic model of a product cycle after closed to 40 yr of struggling!
Perodua IS a total rebadging of a foreign matured model. There is even less chance of any significant local automotive engineering inputs.
Called it blur, slip of the mind, or just pure syiok-sendiri when an interview was given out of the blue.
These e-'con'-omists should keep their mouths shut so as not to prove to the world about their baseline understanding of the issue!
Better ponder this:
http://malaysiafinance.blogspot.com/2007/05/wanted-one-armed-economist-one-of.html?m=1
Understand what's an informed economist?
Wakakakakaka……
to reiterate, Proton as Malaysia's automobile industry has had 33 years of experience - hardly an infant anymore. If an engineering culture and structure has yet to be formed then what use will be that of another (a third as perodua has had 24 years)? Mahathir was =giving nonsensical reason to start anther car
DeleteThe REAL argument put forward by that e-'con'-omist & u is that after 33 years of experience (selling car? designing car? conning the buyers?), Proton is in a matured stage of development!
DeleteBut, in REAL industrial development, no genuine local inputs means that that industry has not matured, ie still stuck in the infant stage!
Inverted bathtub theory of Industrial development 101!
If an engineering culture and structure have yet to be formed after 33 yrs, the ONLY conclusion is those who r been given the job to administrate r gaji-buta morons of zilch uses!
Why the SKorean can while the melayu tak jadi?
Then, the question is WHY r they been given the tasks?
Ketuanan ego? Ketuanan bolih?
These could be mamak's initial fault of trusting that those who were given the opportunities could form that umbrella effect to inspire their kindred!
No such luck!
Hope mamak has learnt that lesson WELL!
hmmm best "political" statement from an economist.
ReplyDelete