KUALA LUMPUR: The government will review the country’s automotive policy to ensure Proton remains competitive in the local market, said Prime Minister Tun Dr Mahathir Mohamad.
Dr Mahathir said the study would focus on issues relating to the development of the local automotive industry and the new proposed national car project.
"The study will also include discussions on how to prosper the development of local companies, research and development activities and move to improve export activities.
"The government also welcomes any suggestions relating to the implementation of the new national car project including collaboration with other countries," he said during the question and answer session in Dewan Rakyat today.
Dr Mahathir was answering a question from Datuk Seri Wee Ka Siong (BN-Ayer Hitam) who had asked him to elaborate on the new national car project announced by Dr Mahathir during his visit to Japan.
Meanwhile, Dr Mahathir said the decline of Proton’s sales in the past 10 years was due to the previous government's policy that allowed foreign automotive companies an easy access to enter the local market.
The condition worsened when these international carmakers imposed tight conditions for local cars to enter their market, he said.
“We are too open... even if the car is made of ‘tin Milo’ we will let it enter our market.
“This is the problem that we are facing, thus there is a need to review certain conditions so that foreign cars cannot enter Malaysia easily.
“We agree with free trade. But we find that even though the tax has been reduced on certain goods by developed countries, they have also imposed certain conditions such as Euro 5 (standards) for less carbon monoxide from cars.
“There are some countries that impose agriculture tax on cars... By imposing many conditions, it limits Proton to penetrate their markets. These countries have huge plants and produce millions of cars annually and they impose restrictions on cars entering their markets,” said Dr Mahathir.
In regards to shares held by foreign car companies, he said the government agreed to collaborate with other giant countries that has expertise in the automotive industry.
“We are ready to buy adequate shares as per discussion... but we need to take charge in the companies' management.
“We have reached the stage where Malaysians are able to produce cars from A to Z, from designing to marketing,” he added.
Dr Mahathir said however, “talent” that Malaysia had would go to waste if Malaysia sold its company to foreigners.
He also said that Proton was a success story for Malaysia as it managed to sell 25,000 cars in the United Kingdom, among others.
“Proton was able to penetrate local and overseas market. However due to poor governance of (previous government) which has little knowledge in automotive industry, it results to the decline in Proton’s performance.
“They (previous government) also did not provide RM1 billion fund for the purpose of research to Proton... they only decided to help Proton after the company was sold to a foreign entity,” he said.