Prime Minister Abdullah Ahmad Badawi made this clear that the price of Proton cars would inevitably be reduced because it had to compete and price its products acceptably to the market.
“This is extremely important. It is up to the management (of Proton) to decide what the price is going to be. Competition is the challenge that Proton must face. It can’t run away from that,” Pak Lah said.
The Government would also help Proton by promoting its cars in foreign countries, Abdullah said. “We are not confining Proton to the Malaysian market. Proton must grow big, Proton must be competitive and the present management is committed to achieve this.” Abdullah said the capacity for Proton in the local market was too small and it must find room to improve, particularly in exporting its cars overseas.
The Prime Minister also announced that the APs will be phased out in 2010.
However, Deputy Prime Minister Najib Razak said Proton will continue to enjoy support from the Government, despite the National Automotive Policy.
"What we need to do to help, we will do in line with the WTO (World Trade Organisation) liberalisation," he said. Under the WTO, Malaysia has an obligation to reduce import duties on cars from 2008. Without elaborating, Najib said the Government would introduce measures consistent with the WTO to support Proton.
"We are developing a set of policies and measures that will make Proton more competitive. "However, Proton will have to undertake some internal measures to be more competitive, as it cannot continue to operate in an environment with a high level of protection as protective barriers are coming down. Proton will have to make the necessary adjustments."
On the phasing out of Approved Permits (APs) by 2010, Najib said the Government would discuss with existing AP holders ways for them to move to other businesses. He said "everyone was aware" the AP system could not continue indefinitely. "People expect it to go on longer, but we decided to abolish it in line with the WTO agreement."
I felt it's a frivolous and farcical the statements made by Najib. How on earth can the govt help Proton to be more competitive if Proton itself can't be competitive - ie. if they can't bring down their cost of vendorship, cost of overheads, cost of parts and cost of poor quality? The only way is for the govt to subsidise Proton, ie Proton will sell its cars at a huge discount and the differences will be make-up by the government; that is similar to what the government had done for Malaysian Airline and in an indirect way, Renong and Perwaja.
Equally, it is perplexing and inane regarding the "re-education" and re-training proposed by Najib for the AP holders. These AP holders are currently multi-millionaires and some are billionaires. If the govt phase out AP, these AP Kings had so many other businesses currently of which they could even consider the acquisition of Maybank or the lesser RHB Bank or Affin Bank. So, do they need Najib to re-educate and re-train them? Fallacious and ludicrous thinking and expression.
“This is extremely important. It is up to the management (of Proton) to decide what the price is going to be. Competition is the challenge that Proton must face. It can’t run away from that,” Pak Lah said.
The Government would also help Proton by promoting its cars in foreign countries, Abdullah said. “We are not confining Proton to the Malaysian market. Proton must grow big, Proton must be competitive and the present management is committed to achieve this.” Abdullah said the capacity for Proton in the local market was too small and it must find room to improve, particularly in exporting its cars overseas.
The Prime Minister also announced that the APs will be phased out in 2010.
However, Deputy Prime Minister Najib Razak said Proton will continue to enjoy support from the Government, despite the National Automotive Policy.
"What we need to do to help, we will do in line with the WTO (World Trade Organisation) liberalisation," he said. Under the WTO, Malaysia has an obligation to reduce import duties on cars from 2008. Without elaborating, Najib said the Government would introduce measures consistent with the WTO to support Proton.
"We are developing a set of policies and measures that will make Proton more competitive. "However, Proton will have to undertake some internal measures to be more competitive, as it cannot continue to operate in an environment with a high level of protection as protective barriers are coming down. Proton will have to make the necessary adjustments."
On the phasing out of Approved Permits (APs) by 2010, Najib said the Government would discuss with existing AP holders ways for them to move to other businesses. He said "everyone was aware" the AP system could not continue indefinitely. "People expect it to go on longer, but we decided to abolish it in line with the WTO agreement."
I felt it's a frivolous and farcical the statements made by Najib. How on earth can the govt help Proton to be more competitive if Proton itself can't be competitive - ie. if they can't bring down their cost of vendorship, cost of overheads, cost of parts and cost of poor quality? The only way is for the govt to subsidise Proton, ie Proton will sell its cars at a huge discount and the differences will be make-up by the government; that is similar to what the government had done for Malaysian Airline and in an indirect way, Renong and Perwaja.
Equally, it is perplexing and inane regarding the "re-education" and re-training proposed by Najib for the AP holders. These AP holders are currently multi-millionaires and some are billionaires. If the govt phase out AP, these AP Kings had so many other businesses currently of which they could even consider the acquisition of Maybank or the lesser RHB Bank or Affin Bank. So, do they need Najib to re-educate and re-train them? Fallacious and ludicrous thinking and expression.
2 comments:
Proton is committed to achieve??
wuahhahahhhahahaaaaaa...let's just see wat happens after a few years later.
Proton was a national car. Now it seem that the govt is finding it hard to support Proton. We were made to think BIG...bigger than our capabilities. Now we are to be Regional Automotive Hub??? Another dream, but this time with the axe as well.
Think about it. The national car program was etched at the time when there is NOTHING in the way of postive market forces to enable it to float, let alone prosper. There is no local vendors. No suppliers. No trained human resources. No big market. No technology know-how. We only have the dream of a former PM to see that malaysia can build cars and he was not going to wait 20 years. But that is NOT the end product. He wanted to drive in the BELIEF that malaysian can build automobiles. Even now some quarters are still laughing and rediculing but Proton is still making headways. Sacrifices have to be made. Feasibility report was not positive but mahathir would not have it any other way. That is LEADERSHIP. He made people dream to see that we can do it and it took born-blinds a long time to open our heart and at last BELIEF that WE CAN. A MANAGER would have followed logic and start with assembling. I believe we would still be doing that had Mahathir got a soft side. HE DO NOT HAVE. So build we must..... And some still laugh and fortune tellers NEVER STOP telling the DIE FORECAST just as they were doing 20 odd years ago.
Now Proton is supposed to be a strong, macho man ready to take on the world. With the present standard of our local vendors, that is like putting a knife to the throat. I own a PROTON WAJA 1.6 since a year ago. I never cease to feel proud of it, a truly malaysian car and race I would with any upmarket imported cars most weekends along the treacherous East-West Highway. I have seen the three pointed star and Big H marques stranded by the side; in the drain or after the drain.
I am proud of Waja's comfort and road holding virtue despite its unpresumptious stable. This is A TRULY MALAYSIAN DESIGN and make. Except for the engine, all else is local. Now with the CAMPRO WAJA, it is 100% local. I'm fully satisfied with the in cabin design. I love the steering wheel with radio contols. The size and thickness is just right. I love the wrap-around console. Everything is within easy reach. The seating posture is good. The commanding view is great; it helps my dashing around the E-W Highway in style. The head light is powerful and wide enough for me to notice the elephants by the bushes. The capasity is enough to seat my 4 member family at the back with good comfort. I got the same value with an imported car almost twice its value. I LOVE THIS MALAYSIAN CAR FROM PROTON. The only regret I have is the quality of its finishes from the local vendors; the cabinet drawer stucks, the rear-view mirror is stiff, the brakes's carbon pad renders daily daily cleaning a must, the plastic centre console edge does not fit exactly. All this I can forgive but not The handling and road worthiness, but MY WAJA return 5 stars for that department.....
For all that PROTON strive for and had to live with just to build the local vendors up to standard, the govt load the market with APs that see a former Kia Karnival's RM165,000 down to under RM100,000 for the badge replacement Naza Ria model. The Kia Carens RM110,000 was down to under RM80,000 under the Citra badge. These are hailed as Malaysian Car??? Downright rediculous. Right Harry Porter?
Any manager worth his salt would know that importing products from well established vendors and suppliers is the wasy to get better economy and quality. But PROTON chose the hard way because it is A NATIONAL CAR. It must be local sourced. For that Proton need lots of support. But looking at the development of the models and its improving quality, I think the government should be more symphathetic and give some more time for the mass economy to work and not pull the rug off the moment it could. If anybody should go I think it is THE MINISTER with the iron brand.
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