Tuesday, 4 June 2013

MALAYSIA MINISTRY OF AUTOMOTIVE?

Back in 2009 and on various other platform, as the President for the Proton Edar Dealers Association Malaysia, I issued statements and called for the government to established a custodian to the automotive industry (See the copy of Bernama at HERE and media picture at HERE). Automotive sales have been affected by various statutory policies that had hampered and hindered the growth of the sector but automotive industry is a Key Driver that can help Malaysia to meet its vision to be a develop nation. It is common for a Ministry to be set up to promote the growth of an important sector in Malaysia, for example Ministry of Tourism, Ministry of Agriculture etc. Why not a Ministry of Automotive?

Naturally, we support Datuk Syed Mohamad Syed Murtaza, DRB-HICOM Berhad Chairman proposal for the government to establish a new Ministry for the Automotive Sector. See below, extract from Business Times dated 31 May 2013. The actual article is available at HERE.
 

Call for automotive sector ministry

MALAYSIA should consider establishing a new ministry for the automotive sector, DRB-HICOM Bhd chairman Datuk Syed Mohamad Syed Murtaza said.

Syed Mohamad said automotive is one of the few industries that can help Malaysia meet its vision to be a developed nation by 2020.

"We have a ministry to take charge of tourism. There is one for education and health," Syed Mohamad, who was former managing director of Armstrong Auto Parts Sdn Bhd and Armstrong Cycle Parts Sdn Bhd said.

"Should we not seriously consider having a ministry of automotive industry?" he asked.

Syed Mohamad was speaking at the Business Times Insight forum on how the National Automotive Policy (NAP) will reshape the industry, here on Wednesday.

The event was attended by some 150 industry players.

Malaysia's automotive industry began in 1960s, and has been marked as one of the most important industries under the manufacturing sector to spur the economy.

Before foreign cars were first produced locally in the 1960s, they were fully imported (in the form of completely built-up units or CBUs) from other countries.

The domestic industry has since progressed rapidly, with the help of carmakers from Japan and South Korea especially.

Malaysia had the biggest sales volume in Southeast Asia for a few years after the 1997/1998 financial crisis.

It is currently the region's third largest market after Thailand and Indonesia, with sales and production of over 600,000 units each.

In the first four months of the year, the total sales or total industry volume (TIV) grew 13 per cent year-on-year to 210,153 units.

In April alone, the TIV grew by 10 per cent to 52,489 units.

Bermaz Motor Sdn Bhd managing director Datuk Ben Yeoh said the government should consider providing more incentives for car firms to bring in energy-efficient technology.

"This is because the technology does not come cheap and the end cost cannot be passed on to consumers.

"The government must ensure that the infrastructure is ready to accept all types of EEVs (energy efficient vehicles), as Malaysia is still seen to be lacking in this area, especially in catering for green diesel vehicles, which are far more efficient than the hybrid models," he added.

Read more: Call for automotive sector ministry http://www.btimes.com.my/Current_News/BTIMES/articles/DRB30/Article/index_html#ixzz2VCBEbm9o


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