Mixed views over need for a new national car project

KUALA LUMPUR: Reactions to the proposed new national car project have been mixed due to a lack of details, with some questioning the need for such a project while others are hoping it will incorporate the latest technology,
Prime Minister Tun Dr Mahathir Mohamad, who mooted the idea during his visit to Japan, had explained that the suggestion originated from the private sector.
Maybank Investment Bank analyst Ivan Yap said this was just a preliminary announcement with no real plan being revealed.
"It is hard to comment as everything is based on assumption and guesswork right now," he told Bernama.
As to whether parts for the new car would be sourced from neighbouring countries such as Thailand, Yap said that would depend on the business plan of the company undertaking the project.
He also pointed out the possibility of China reversing its investment in Proton if a new national car company was created.
During his three-day trip to Japan, Mahathir mentioned the ambition of starting another national car company, citing the sale of Proton's equity last year to Chinese automaker, Geely, as a reason.
"Such a project will be a catalyst for growing Malaysia's engineering capability similar to what the government had done when it established Proton.
"We need to create opportunities for engineers to do their own things here," he said.
The Prime Minister said Malaysian engineering companies could also benefit from the current globalisation trend where major manufacturers outsourced parts and components from other countries.
"We can produce parts for branded cars in Malaysia and for export. That would earn us a lot of foreign exchange," he said, adding that Malaysian companies, however, need to improve their efficiency.
Another analyst, who wished to remain anonymous, said if Malaysia were to embark on another new national car, the country had to aim for the highest standards and use the latest technology to produce electric and autonomous cars.
"That (electric or autonomous car) is the new national car if we want to aim for one, rather than just another car brand on the street," he said.
The analyst said even if parts for the proposed car were sourced from neighbouring countries, the car would still be considered "Malaysian" as long as it was built here.
"In a globalised economy such as today, each country has its own advantage in trade. Even the (Apple) iPhones produced in China, with components outsourced from various parts of the world, are still considered to be US smartphones," he said.
The analyst said Mahathir was no stranger to kick-starting a company using foreign technology and foreign partners, as he used this strategy for Proton, which was subsequently duplicated by Perodua.
"However, it is a question of whether a national car is what we need today. The world is moving towards the fourth industrial revolution and a normal car is not in the equation," he added.
Meanwhile, former Youth and Sports Minister Khairy Jamaluddin urged the government to invest in public transport including last-mile connectivity and provide incentives for the import of fuel-efficient or electric vehicles.
"But, certainly not another national car project," the Umno Youth chief posted on Twitter. — Bernama