Posted on 31 Mar 2009
MOTOR vehicle production is expected to decline to 480,000 units this year from 550,000 units in 2008, said Minister of International Trade and Industry Tan Sri Muhyiddin Yassin.
He said the decline would be driven by the anticipated lower consumer confidence and tighter credit screening by banks.
"The current global financial crisis and economic slowdown are impacting the automotive industry worldwide and the car companies globally are experiencing severe difficulties," he said at the opening of the Naza Italia Showroom in Petaling Jaya today.
Muhyiddin said the government, in an effort to assist the motor vehicle industry during this economic crisis as well as to ensure its continued development, has allocated another RM200 million to the automotive development fund under the second economic stimulus package.
He said in an effort to further promote the development of this industry, the government was reviewing the National Automotive Policy (NAP).
"Consultation among various government ministries and agencies as well as the industry associations are being conducted to ensure the NAP contributes effectively towards the development of the industry," he said.
Muhyiddin said the review would further improve the existing guidelines, policies and incentives, taking into consideration the impact of the current global and regional economic situations.
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