Wednesday November 4, 2009

Let’s work to regain our lead

INTERNATIONAL Trade and Industry Minister Datuk Mustapa Mohamed’s acknowledgement that Malaysia is trailing neighbour Thailand in the automotive industry hits the nail on the head.

This shows how far the nation’s automotive industry has progressed or, in fact, stagnated. It is a sad state of affairs given that Malaysia was the first in the region to proudly enter the car industry 20-odd years ago.

Thus, it was with bated breath that we waited for the Government’s announcement of the newly-revamped National Automotive Policy (NAP), which is supposedly designed to get Malaysia back on track.

Unfortunately, the amended NAP just proves to be something quite disappointing. The continuance of protecting the national car makers by maintaining high excise and import duties is not entirely unexpected but still highly disappointing.

The thrust of the NAP is to increase competitiveness and liberalise the sector but maintaining the high excise and import duties smacks of face-saving at best.

That national car makers after 20 years in the industry still needs crutches before they can stand on their own feet speaks much about the industry locally.

I don’t begrudge the Government the estimated RM6bil to RM7bil collected via excises and duties.

By all means, the Government should be allowed its fair share of resources so that it can govern the country properly. And yet, why should the people be burdened with high vehicle prices in order to do that?

Admittedly, the monies collected through excises and duties, which translate into high vehicle prices, do eventually make its way back to the people by way of infrastructure developments.

But one wonders how much of it is “mismanaged” away as documented by the annual Attorney-General’s report.

To avoid such profligacy, might I propose a special fund to receive these vehicular duties?

The monies collected should only be used for public transportation and transportation development purposes. At least in this way, the rakyat know how their money is used.

The revamped NAP also offers a brief glimpse into a yet-to-be end-of-life vehicular policy.

I am sure the intentions of policy-makers are in the right place when they made such a proposal. Making sure all cars on Malaysian roads are roadworthy is indeed a worthwhile venture. Yet, the implementation leaves much to be desired.

Why should people change their cars, which in most cases are the second most expensive purchase in life, based on a seemingly arbitrary-picked number? Most car owners maintain their vehicles religiously, some fanatically even.

A well-maintained vehicle should still be roadworthy regardless of its age. I believe car owners should be left alone to decide when their vehicles have given up the ghost instead of being forced to do so.

Despite the brickbats, the NAP’s push to attract foreign investment in the high-engine capacity segment should be commended. The move and its trickle-down effects can provide an added impetus to make Malaysia a high-income nation.

I hope that in the desire to attract foreign investment and protect national projects, the people won’t be priced out of the former while being compelled to shoulder the financial burden for the latter.

Lastly, I think an annual review of the NAP so that policy makers and the industry can respond to the ever-changing business environment is not too much to ask for to catch up and regain the lead which was held 20-odd years ago.

AARON NGUI,
Penang.

News Poll

Latest Jobs from Star-Jobs

Latest from StarProperty