Revised NAP A Boost To Local Car Industry, Says Volkswagen

October 28, 2009 21:28 PM

Revised NAP A Boost To Local Car Industry, Says Volkswagen

By: Ramjit

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KUALA LUMPUR, Oct 28 (Bernama) -- The revised National Automotive Policy (NAP) is expected to give the local motor vehicle industry a boost not only with incentives but also fresh measures to ensure its development.

Volkswagen Group Malaysia Sdn Bhd managing director, Andreas Prinz, said the government has offered measures not only to attract new investments but also encourage expansion of existing operations.

"For foreign car manufacturers like us, we are not expecting too much from the NAP revision. However, we look forward to more details on the policies or measures on technology and environment," he said.

Prinz said this in an email to Bernama in response to the revised NAP unveiled by Minister of International Trade and Industry, Datuk Mustapa Mohamed, here Wednesday.

He said globally, the company was committed to tap opportunities for reducing fuel consumption and making technologies even more climate-compatible.

An automotive analyst from MIDF Research said the lifting of the ban on the issuance of new manufacturing licences would open up the local car industry to the foreigners to assemble cars here and at the same time reduce current excess production capacity.

It would also foster a more competitive market for local and international carmakers, he said.

"This is positive news for market players. Last time, when foreign carmakers want to come here, they have to go through Proton. Now, it will be much easier for them to come in with no controlling issue," he said.

Meanwhile, UMW Toyota Motor Sdn Bhd president, Kuah Kock Heng, said the company was pleased that the government was committed to implement the Asean Free Trade Agreement (FTA) and other existing as well as new FTAs.

"Another positive note is that the government has taken the first step towards implementing a 'Vehicle End of Life Policy'", he said in a statement.

On vehicles parts incentives, Kuah said: "We welcome the additional incentives outlined to support the development of a high value-added parts and components sector and this augurs well for the future of the Malaysian automotive industry."

-- BERNAMA

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