KUALA LUMPUR: Prime Minister Tun Dr Mahathir Mohamad is not simply aiming to develop a third national car, but is adopting a broader perspective to ensure that Malaysia can compete in the fourth industrial revolution (IR 4.0).
Tun Daim Zainuddin, who heads the Council of Eminent Persons, said the automotive sector, which employs about 700,000 people, was one of the sectors that the government planned to focus on.
“My personal view is that the prime minister’s idea is not so much on the third national car. It is to ensure that we have the right education system to face the future,” he told a press conference at Ilham Tower on Monday.
“And the future industries are in manufacturing... certain types of manufacturing, mainly require engineering skills. That is what he wanted in order (for the country) to be able to compete in the future.”
Daim said Dr Mahathir realises that it is vital for Malaysia to upgrade its manpower skills.
“So, if we can produce the components first, that is important so that we can supply and export to the motor industries.
“From there we start to upgrade until such a time that we are in position to produce, not a Malaysian car but an Asian car where the private sector can invest in. That is my understanding.”
Dr Mahathir, in June, had announced that the government is looking into embarking on a third national car project, after Proton and Perodua, both of which were conceived during his first tenure as prime minister.
During a visit to Japan on Aug 7, the prime minister said the government has sought assistance from several Japanese automotive companies, including Nissan Motor and Toyota Motor, to embark on the third national car project.
Meanwhile, Daim said the idea of abolishing all toll collection would not be a wise move at this juncture.
He said the CEP’s report to the prime minister listed the reasons in detail.
“It (abolishing toll collection) would not be a wise move in this financial climate. I think the people would understand why. All these would be presented to the PM once he returns from China,” he said.
Meanwhile, Daim said the CEP opined that the East Coast Rail Link (ECRL) is too costly and not viable.
He said even if there was a substantial cost reduction to the project, the government needs to consider whether the revenue gained from the project is sufficient to cover the operating cost.
“If any of the private sector think the project is viable and they can make money, let them do it.
“As far as we are concerned, we have studied it. It is not viable,” he said.
In May, Daim said the ECRL project would cost more than the RM55 billion announced previously. He said the RM55 billion is only for the first phase of the project and the second phase would cost another RM11 billion.
This, he noted, was excluding a 3.25 per cent interest charged by China’s Exim Bank which would fund 85 percent of the project.