Posted on 21 May 2009
The Government will conclude its review of the national automotive policy by the third quarter, says International Trade and Industry Minister Datuk Mustapa Mohamed.
He said the ministry had commissioned a second audit of the controversial approved permit (AP) scheme for cars and that the fate of APs, which were originally meant to be phased out by the end of next year, would be known at the same time.
“With this we can have long-term planning for manufacturers and component makers,’’ he said.
The ministry has consulted various government ministries and agencies as well as industry association to ensure the national automotive policy contributed towards the development of the industry.
“The review will further improve the existing guidelines, policies and incentives, taking into consideration the impact of the current global and regional economic situation, changes in oil prices, environmental developments and many other factors affecting the development of the automotive industry,’’ Mustapa said following a visit to Proton’s headquarters.
“Special focus is being given to facilitate and encourage the development of the automotive parts and component sector.’’
The automotive sector has many linkages in the economy and Mustapa said over 120,000 people were dependent on the sector.
In conducting the review of the sector, Mustapa said
He said the rightsizing exercises being undertaken abroad posed a different challenge to
“The current policy was introduced in 2006 and now it is important to refine it,’’ he said.
On the AP system, Mustapa said the findings of the second audit would have to be reviewed before a decision was made.
Mustapa added that the take-up rate for the car-scrapping policy had been weak so far.
“Proton has been asked to look at this policy with a view of revising it if necessary,’’ he said. Proton managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir said to date only 5,000 people had come forward to participate in the company’s car-scrapping scheme.
