POTENTIAL TO INCLUDE ASEAN PARTNERS
Plan is ambitious but necessary to create Asean economic bloc, says minister
MALAYSIA’S push to build a third national car brand may see it sourcing parts from Southeast Asian neighbours as the region forges stronger ties to weather out the United StatesChina trade tensions.
Prime Minister Tun Dr Mahathir Mohamad’s dream of developing a homegrown automotive brand has courted interest from neighbouring countries, said International Trade and Industry Minister Datuk Darell Leiking in an interview here.
“What Dr Mahathir meant was that he needed something where Malaysians and Asean can get together to supply components of this vehicle and make it a national car in Asean, not only in Malaysia,” said Darell.
“It’s ambitious but I think that it’s necessary now, more so when you want to create an economic bloc like Asean.”
As a trade war between the US and China deepens, Asean has benefited from its fallout as companies shift orders and move production bases to the region.
It was the top destination among the one-third of 430 American companies in China that considered moving operations elsewhere, according to a survey by AmCham China and AmCham Shanghai.
Toyota Motor Corp, Tata Motors Ltd and Ford Motor Co already operate assembly plants in Thailand, the biggest car manufacturer in Southeast Asia.
The country seeks to ramp up production to 3.5 million units in 2020, an 80 per cent increase from 2016, and exports the vehicles to Australia, Japan, as well as Malaysia and Indonesia.
Malaysia stands to gain as a transshipment point, capitalising on its location by the Straits of Malacca — connecting Asia’s biggest economies from Japan and China to India and beyond.
Finance Minister Lim Guan Eng said the trade war would be positive for the country over the next year or so, especially in electronics and steel as the world’s two biggest economies seek alternatives for supplies.
The government is gathering views from the industry on developing the new car brand and will let the project be driven and funded by the private sector, said Leiking.
The government will assist in licensing and facilitation, he said.
Dr Mahathir revived his vision of a homegrown car brand a month into his premiership. He started Proton in the 1980s in his previous tenure, but the brand was later privatised and half of its stake sold to China’s Zhejiang Geely Holding Group Co.
A second effort was made in the 1990s with Perusahaan Otomobil Kedua Sdn Bhd (Perodua).
This time, however, the new car would compete in a market beyond Malaysia, said Darell.
“Proton has already achieved what they’ve wanted and they’re there.
“So, this is not competing with Proton, this is not competing even with Perodua, this is not competing with anyone. This is a separate thing altogether,” he said.
A successful carmaker could help boost the nation’s exports, which relies on commodities such as crude and palm oil, as well as electronics.