Thesun 2009-05-27 Page14 National Automotive Policy Under Review

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theSun

| WEDNESDAY MAY 27 2009

business

M’sia back as top auto producer in Asean KUALA LUMPUR: Malaysia has regained its position as the largest automative producer in the Asean market for the first quarter of 2009, taking over the lead from Thailand. The country, which has been trailing Thailand since 2003, recorded the highest total industry volume (TIV) of 118,681 units, president of the Malaysian Automotive Association (MAA) Datuk Aishah Ahmad said. She said Thailand was in second place with a TIV of 107,774 units followed by Indonesia with 99,754 units. “There are some signs to show there is more confidence in the market. I guess the

stimulus package as well as the introduction of new models have pushed the demand in the local market,” she told reporters after the opening of the Second Kuala Lumpur International Automotive Conference 2009 yesterday. Aishah said the impact of the global economic slowdown on the local automotive industry has been mild due to prompt counter measures by MAA members to tackle the crisis. “The lessons learnt from the financial crisis in 1997 have in many ways helped our members to take proactive measures promptly and correctly,” she said.

National Automotive Policy under review by Karen Arukesamy [email protected]

Barcelona deserve to win, say players pg 30

KUALA LUMPUR: The government is reviewing the National Automotive Policy (NAP) which will be concluded by the third quarter of this year, Deputy Prime Minister Tan Sri Muhyiddin Yassin said yesterday. “The review takes into consideration views and proposals by the industry associations, as well as relevant government ministries and agencies,” he said at the opening of the Second KL International Automotive Conference 2009 at PWTC. “Special focus is being given to facilitate and encourage the development of the automotive parts and component sector,” Muhyiddin stressed. Having had a hand in the International Trade and Industry Ministry previously, he acknowledged the importance of having a clear indication in the policies and plans for the healthy growth and development of the industry. He said the growing regional economic integration is an important factor for the automotive sector’s growth in the region. “Market opening measures under the Asean Free Trade Agreement (AFTA) with dialogue partners have contributed strongly to make Asean one of the world’s largest producers of motor vehicles and parts and components,” Muhyiddin said. He also said it will provide new opportunities for the automotive industry with the Common Effective Preferen-

tial Treatment (CEPT) scheme. “Under the CEPT and Asean Trade in Goods Agreements, Malaysia has agreed to eliminate import duties on all products in the Normal Track on Jan 1, 2010. This includes motor vehicles, auto parts and components.” “I believe Asean needs to focus more on product specialisation going forward. However, the potential of the Asean market, which is about half the size of China or India, cannot be discounted, especially with rising income levels of the Asean middle-class,” he said. Muhyiddin explained that the government will further enhance opportunities for domestic industry by participating in Free Trade Agreement (FTA) negotiations bilaterally and regionally in Asean. He said the tariff reductions and eliminations under the FTAs will provide “competitive edge and greater market openings”. He also pointed out that although the motor vehicle sub-sector in Malaysia will not be directly impacted by the global economic downturn, the industry sales are expected to decline by 12.4% this year due to its heavy dependence on the domestic market. Recognising the contribution of the domestic automotive industry towards the development of the country, Muhyidding said the government has allocated RM200 million to the automotive development fund to assist as well as to ensure the continued development of the industry during the economic crisis.

On whether the review of the National Automotive Policy (NAP) will see lower tariff for local cars, she said: “As far as the local tariffs like excise duty and sales tax are concerned, I do not foresee the government reducing them as yet.” Starting from Jan 1 next year, import duties from Asean countries will be reduced from the current 5% to 0% for complete build-up (CBU) vehicles, she added. Aishah said the review of the NAP should be able to stimulate the automotive industry and also encourage the usage of more local components to support the local industry. – Bernama

Penang retains high ranking in investments by Opalyn Mok [email protected]

GEORGE TOWN: Penang is still No. 4 in the country in terms of investments secured for the first quarter of this year. InvestPenang chairman Abdul Malik Abul Kassim said the state received investments totalling RM749.8 million for the quarter, comprising RM278.9 million in domestic investments and RM470.9 million in foreign investments. In terms of foreign investments, Penang ranks second while retaining the fourth spot in domestic investments although the amount has decreased. Johor tops the list with a total of RM2.3 billion, out of which RM815 million is domestic investments and RM1.49 billion is foreign investments. In second place is Sarawak with RM1.6 billion in domestic investments and RM99 million in foreign investments, bringing the total to RM1.7 billion. Selangor ranked third with a total of RM1.2 billion investments, of which RM899 million is domestic investments. According to Abdul Malik, the top country investing in Penang is Singapore with a total of 16 projects, followed by Japan (14 projects), Taiwan (10 projects), Korea (five projects), Australia (three projects), Germany (four projects) and the Netherlands (five projects). The industries involved include chemical products, metal products, petroleum and oil products, electrical and engineering, plastic and food products. “The investments for this first quarter is good considering the global economic crisis but we hope to be able to work on the second and third quarters for more investments,” Abdul Malik said. He said out of the investments for 150 projects last year, one was temporarily delayed and two had been cancelled but the amount involved was small. Asked about the progress of the RM360 million golf course in Batu Kawan, Abdul Malik said discussions between the investors and Penang Development Corporation are still ongoing.

GDP for 2009 expected to contract less than -1% KUALA LUMPUR: The country’s economy is expected to contract less than -1% this year amid the current economic climate, Second Finance Minister Datuk Ahmad Husni Mohamad Hanadzlah said. “I cannot tell you (the growth figure) but it will definitely be below -1%,” he said when asked to comment on the projection by economists that the gross domestic product (GDP) will contract between -4.5% and -5% this year.

Bank Negara Malaysia’s GDP forecast for the year is between -1% and 1%. Bank Negara will make an announcement on the first quarter GDP today. “Wait for Bank Negara’s announcement tomorrow (Wednesday). Prime Minister Datuk Seri Najib Abdul Razak’s will make another announcement the next day on the new forecast growth for 2009 and we will then know the

briefs Pharmaniaga on track for 6% growth SHAH ALAM: Pharmaniaga Bhd is on track to achieve its key performance indicator (KPI) target of 6% revenue growth this year, its chairman Datuk Azman Yahya said yesterday. He said to achieve this, the company was continuing to focus on its Malaysian and

position of the country’s economy,” he told reporters after officiating the launch of the Securities Commission Executive Enhancement and Development Programme, here yesterday. Husni, however, said the economy would recover in the third quarter of this year, as the impact of the recent RM67 billion economic stimulus package begins to be felt. As for 2010, he said the govern-

Indonesian operations. The company registered a revenue of RM1.31 billion last year, up 10.3% from RM1.18 billion in 2007. “We will make every effort to achieve the KPI target,” Azman told reporters after the company’s annual general meeting (AGM) yesterday. – Bernama

Kulim to expand operations in PNG, Solomon Islands JOHOR BARU: Kulim (Malaysia) Bhd has identified more than 10,000ha of land in Papua New Guinea (PNG) and the Solomon Islands for the development of new oil palm plantations, its

ment believed growth would be positive. Asked as to whether there would be more liberalisation measures in the near future, Husni said that the government is currently working on the development of new economic model for the country. “The economic model is in the planning stage,” he said, adding that the government would study which areas should be further liberalised.

chairman Tan Sri Muhammad Ali Hashim said yesterday. The company’s aggressive expansion in the two countries will be undertaken by its subsidiary companies New Britain Palm Oil Ltd (NBPOL) and Ramu Agri-Industries Ltd. Earlier, Muhammad Ali announced that the company’s pre-tax profit for the first quarter of 2009 had declined by 39.23% compared with the corresponding period of last year. However, although its pre-tax profit fell to RM129.32 million compared with RM212.79 million last year, its revenue went up 54.33% to RM463.46 million, Muhammad Ali said. – Bernama