KUALA LUMPUR: Astana City Group Sdn Bhd (ACG) is keen on being involved in the third national car project, and sees the vehicle being fully-powered by liquid petroleum gas (LPG), replacing petroleum altogether.
Its managing director Nik Mohd Fareez Nik Ahmad Azman said the company submitted a proposal paper on the project to the International Trade and Industry Ministry (MITI) last year through its Thai partner, Pap Econ Co Ltd.
Astana City’s other partner, Hyundai BS&E from South Korea, will also be involved in the project.
Nik Mohd Fareez said what the company is bringing to the table is technology which enables cars to use LPG as fuel.
“Take Japan, for example. Their government has made it compulsory for taxis to use LPG. This is because it is much more cost-effective and causes less environmental pollution.
“LPG is able to reduce carbon emissions by 20 per cent, compared to petrol. What we are trying to do is to bring the same successful model used in Japan and South Korea to Malaysia,” he said at a press conference after the launch of the LPG 14kg composite cylinder here, yesterday.
Prime Minister Tun Dr Mahathir Mohamad, who launched the event, urged Malaysians to support local industries to ensure that they evolve and to stem the outflow of money from the local economy.
Others present at the event include Rural Development Minister Datuk Seri Rina Harun, Minister of Domestic Trade and Consumer Affairs Datuk Seri Saifuddin Nasution, his deputy Chong Chieng Jen, and the ministry’s director-general Datuk Muez Abd Aziz.
Entrepreneur Development Minister Datuk Seri Mohd Redzuan Yusof was reported to have announced that a portion of a RM20 million fund, which is the ministry’s existing allocation for research and development (R&D), will be used to develop the third national car prototype.
The prototype is expected to be launched during the first quarter of this year.
Nik Mohd Fareez said Astana City Group’s long-term plans involving the third national car include the construction of LPG refuelling stations nationwide, which will also create more economic opportunities for locals.
He said his company sent application forms to build the stations to the government in October and is now waiting for a response.
“If the government agrees to our application, (we) plan to cooperate with Mara and Petronas (in terms of acquiring) manpower and launching the LPG stations,” Nik Mohd Fareez added.
Opposition to third national car project
The idea of a new national marque was mooted by Dr Mahathir just weeks after he became Malaysia’s seventh prime minister following the May 9 election. But it has been widely panned by critics who fear a repeat of Proton, the national car project which has cost taxpayers tens of billions of ringgit in tariff protections and bailouts since it was established in 1983, during the early years of Dr Mahathir’s first tenure.
Loss-making Proton has gone from controlling three-quarters of the domestic car market in the early 1990s, to selling just one in 10 new cars registered in Malaysia today. It has fared ever worse overseas.
Proton is now de facto controlled by China’s Geely, and its fortunes could be revived, as Dr Mahathir inked a deal in Beijing in August allowing the Malaysian car (essentially Geely cars in Proton clothing) to be manufactured and sold in China.
Redzuan has defended the project against critics, stating that they do not understand the implicit benefits behind the idea.
He was quoted as saying that the development of the national car could be a catalyst for the creation of homegrown automotive entrepreneurs; and workers involved in the Internet of Things, robotics, software, as well as the aerospace industry will also enjoy greater economic opportunities.