Govt mulls imposing new conditions on imported cars (Updated)

KUALA LUMPUR: The government may impose new conditions on the import of foreign cars to prioritise local brands.
Prime Minister Tun Dr Mahathir Mohamad said foreign-made cars are being imported freely without any conditions imposed, making it tough for the local carmakers to thrive.
He said this is in contrast to the conditions set by other countries on the import of cars.
"It seems we are now very open to accepting foreign brands," he said in the Dewan Rakyat here today.
"All cars, even those that are made out of a 'tin Milo' (Milo can), are being allowed into Malaysia. But our cars are finding it hard to penetrate many other foreign markets.
"That is why we must review the possibility that certain conditions be imposed so that foreign-branded cars won't make it to our shores that easily. And this will give the opportunity for our local cars to enter our automotive market."
Mahathir said some of the conditions imposed by foreign countries currently include a Euro 5 standard on emission regulations and an agriculture tax on imported cars.
The Langkawi MP was responding to questions on whether the government plans to impose similar restrictions on foreign cars and whether any new national car planned in the future would be given similar protection as Proton.
Speaking specifically on Proton, Mahathir said the brand's declining performance over the years was down to the previous Barisan Nasional (BN) government's loose regulations on car imports.
"With big car companies entering Malaysia and competing with Proton, that was the reason Proton found it hard to compete. And that was why Proton's market slumped," he said.
Mahathir also moaned the previous government's decision to hold out financial aids for Proton and a promised RM1.1 billion reimbursement grant for research and development was only given after the company sold 49.9% of its stake to China's Zhejian Geely Holding Group (Geely).
"I don't know what happened in the past 10 years, no aids or loans were given to Proton, and they had to find their own money. If there was sincere assistance from the government, I am confident Proton would have been successful now as it was in the ancient times.
"It seemed as though we do not want to encourage our locals to be involved in the car-manufacturing industry, and that our policy was only to prioritise imports. But the new government has different policies. To the opposition lawmakers, please watch what we will do," he said.