Thursday, August 13, 2009

MITI To Complete Automotive Policy Review End Of September

August 14, 2009 12:07 PM

MITI To Complete Automotive Policy Review End Of September

By: Ramjit

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By D. Arul Rajoo

BANGKOK, Aug 14 (Bernama) -- Malaysia expects to finalise the review of its three-year-old National Automotive Policy (NAP) by end of September, taking into account various automotive policies worldwide, especially the success story of Thailand's automotive industry.

International Trade and Industry Minister Datuk Mustapa Mohamed said Thailand, regarded as the "Detroit of Asia", has a good automotive policy and was much advance than Malaysia despite starting late.

"We acknowledge Thailand's strength in the industry...they started late but are now a giant in the field," he told Malaysian media after a breakfast meeting with Thailand-based Malaysian business community on the sidelines of the 41st Asean Economic Ministers Meeting here.

Mustapa, however, declined to elaborate on the possible changes in the revised policy although previous reports had stated that Malaysia wants to remove rules that protect the auto industry from foreign competition in order to boost the sector.

Deputy Prime Minister Tan Sri Muhyiddin Yassin had said in May that the automotive industry in Malaysia needed to be energised and revitalised to boost investment.

When the NAP was formulated in 2006, the government reduced import taxes on most imported vehicles and lowered car prices to make Malaysia a regional auto hub but critics said there are still barriers to protect national carmakers Proton and Perodua.

Malaysia is the largest market for passenger cars in the region, with over half-a-million units sold annually.

Thailand has no national carmakers but has become home to about 14 automobile assembly plants owned by major vehicle makers, with a total production capacity of 1.2 million vehicles a year.

More than 50 per cent of its vehicle production are exported to over 100 countries annually.

It has about 300,000 people working in the industry and in five motorcycle assembly plants with a capacity of 2.5 million units annually and auto parts industry with 709 factories.

Next week, the Malaysia External Trade Development Corporation (Matrade) will organise a marketing mission on automotive parts and components.

Officials from six Malaysian companies will visit autopart maker Aapico, Honda Thailand and Able Sanoh.

-- BERNAMA

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