"...would take further action against imported cars if the new Proton Saga did not sell"
Discount Given To Proton Is A Sovereign Right, Says RafidahBernama, 6 January 2004
PUTRAJAYA, Jan 6 (Bernama) -- The 50 percent discount in excise duty given to national car manufacturer Perusahaan Otomobil Nasional Bhd (Proton) is Malaysia's sovereign right, said Minister of International Trade and Industry Datuk Seri Rafidah Aziz.
"This is our sovereign right, for the government to give such a discount or exemptions within the country. We are not playing around with duties," she said in response to questions from reporters here Tuesday.
Rafidah also stressed that the move was also consistent with the World Trade Organisation's rules.
"Whatever exemption given to Proton or other national car manufacturers will be continued until further decision made by the government. But for now, the government decides to continue with the discount," she said.
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However, Rafidah advised Proton and other national car manufacturers to look further into export potential and strategise their efforts to enable them to compete in a wider marketplace.
"With or without the element of support, Proton and other national car manufacturers must have long term strategy to compete as a viable entity," she said when met after officiating the 2nd International Malaysia-Japan Plastics Conference here.
Rafidah reiterated that the government has long made the call for these manufacturers to be prepared for the full implementation of the Asean Free Trade Area (AFTA) for automotive industry and by now when the tariff cutting has been brought one year forward, the industry should have factored in all the issues.
"They knew 10 years ago that AFTA would come into place, they should have been prepared," she stressed.
On the confusion faced by some industry players regarding the new tariff and excise duties announced by the government last Friday, Rafidah said "it was not so much of a confusion among the industry players, they just need some clarifications."
The minister said individual companies need to collaborate where they could have collective effort in enhancing competitiveness and reducing cost in facing the regional competition.
"They have to do whatever it takes domestically to face the competition," she said.
She added that with more manufacturers expected to enter the Asean market, car retailers in Malaysia could take this advantage to become distributors.
In addition, local importers and franchisees are advised to work with their principals from Korea and Japan in allowing them to make Malaysia as the regional base.
"Malaysia is an attractive market and even a market leader in Asean in passenger cars while Thailand is the leader in commercial vehicles. We should take the advantage of these strengths to move forward," she added.-- BERNAMA

come one man.. this policies are 10 years ago....