TOKYO: Proton Holdings has to be more competitive in the global automotive industry, especially with the opening of new markets due to the Asean Free Trade Area and free-trade agreements.
Deputy Prime Minister Tan Sri Muhyiddin Yassin said the national car company needed to come up with suitable marketing and production strategies to make it a bigger player in the international scene, since Malaysia’s domestic market was a small one.
“Depending on government support is not enough,” he told Malaysian reporters yesterday on the second day of his visit here on a special investment mission.
Muhyiddin added that penetrating countries such as India, China and Pakistan alone would be sufficient to make Proton a significant player in the regional market.
He also said that there was a need to produce the vehicles more competitively, as the cost was still high.
Earlier, during a question-and-answer session with Malaysian students and professionals here, Muhyiddin said he was still dissatisfied that Proton was not exporting the national car in a big way.
“They need to increase their competitiveness. They should be able to compete not only domestically but also internationally. I don’t need to teach them, the Proton management.”
On whether a strategic partner had been identified by Proton, he said nothing had been finalised.
Muhyiddin also told reporters that investment by the Tokuyama Corporation was expected to contribute RM19bil to the country’s gross domestic product in 10 to 15 years.
“The company’s business operations in Sarawak will have a multiplying effect as many of the supporting companies will also be located in the area,” he said.
Tokuyama is expected to begin polycrystalline silicone manufacturing operations for solar cells from 2013, with its base in Longmaju, Sarawak. The investment from Tokuyama will be RM5.5bil.
Muhyiddin said a meeting yesterday had resulted in Malaysia agreeing to give incentives like cheaper supply of electricity for 10 years, sourcing of skilled workers and negotiating on electricity rates after the 10-year period.
article from: thestar
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