To quote the writer in CBT here (read the comments section):

http://www.cbt.com.my/2012/07/12/9th-gener...ed-in-malaysia/

"Proton benefits from additional rebates via Industrial Adjustment Fund (IAF), which allows car makers to receive a proportionate rebate not just on the local content but also R&D investment.

Obviously nobody except for Proton / Perodua does R&D work here. Also, IAF rebates takes into account cumulative investment made, meaning the figures can be back dated. It's a loophole that allows national car makers to continue getting protection.

Foreign car makers would not want to build another facility here when they already have mega advanced facilities around the world, complete with proving grounds, climate chamber and all.

So yeah, 20%, 25% makes no difference .... Proton still continues to get protection from the government from this policy

This post has been edited by kenso77: Jul 16 2012, 11:08 AM