DreamEDGE now says will not seek govt funds

15 Aug 2019 / 19:07 H.

KUALA LUMPUR: DreamEDGE, the company heading the third national car project, has pledged not to seek government funds should the venture fall short said International Trade and Industry Minister Datuk Ignatius Darell Leiking.

The decision to utilise government funds to invest in a third national car was made in 2017. The head of Miti said that the decision was made under the old administration, when DreamEDGE was previously largely owned by a unit under Malaysian Industry-Government Group of High Technology (MIGHT).

Now with the new administration, no funds will be used to bail the company out should the venture flop the minister assured. He said that allegations made by a member of the opposition about the current government investing in the third national car is vague and lacks solid proof.

However, he said, “If at all the venture (DreamEDGE) should fail, it will most likely come down to either failure in the area of management or the product.

“Under the new National Automative Policy, a national car refers to a car that is built and assembled locally and employs 90% or more Malaysian. Although the DreamEDGE project refers the car as ‘the third national car’, it is a private initiative,“ said the minister.

While at the launch of the Aerospace Summit launch press conference, Darell revealed that the government is setting up a new ecosystem to encourage local investors. One of the ways it attracts local investment is by providing tax incentives, per criteria.

On the aerospace industry, he says there is huge potential for Malaysia. He cites the RM2 billion investment in Kedah intended for building small planes for export and expects the industry to grow between 10% and 15% this year, despite the tough economic conditions across the world.

However, he raises the various internal attacks on the government and the negative impression it emanates.

“Asean nations are attempting to attract investments from aerospace companies and if the attack on the government continues, why would pick us as investment partners?”

Darell said that the aerospace industry employs 24,500 highly-skilled workers who produce parts for industry giants such as Airbus and Boeing.

He pointed out how important it is that we retain such business and negative talk about the government should stop.

“We should emphasise on the success of the government. Under the leadership of Tun Dr Mahathir Mohamad, Pakatan Harapan is trying to rebuild the country. It has just been over a year since,“ he said.

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