Goh Bok Yen, a veteran of more than 30 years in transport consultancy, told FMT the objective would be better served with increased government support for local companies already manufacturing motorised vehicles and for institutions focused on automotive research and development.
Commenting on a report that the government might seek assistance from Japanese automakers for the project, he said it showed that Putrajaya wasn’t thinking of developing local knowledge and skills from scratch.
“If that’s the case, it’s better to support local players like Proton and Perodua, which already have existing platforms, funding and talent,” he said.
He suggested tax incentives for existing automotive producers and increased funding for automotive colleges.
He also spoke of the stiff competition that Proton and Perodua were facing from foreign manufacturers and said a new national car would make it worse for the two companies.
At present, Perodua has the largest share of the local car market at 39.8%, but Honda last year overtook Proton to take the second largest share (21.3%). Proton, with its 13.8%, is in third place.
Goh said he disagreed that Proton could no longer be called a Malaysian car company, now that Chinese automaker Geely owns 49% of it.
“It is still built by Malaysians in Malaysia,” he said. “Moreover, Proton was using Japanese technology even before Geely purchased it.
“Even a third national car is likely to be based on a foreign platform or to use foreign technology, and that won’t make it any less a Malaysian car.”
However, he emphasised his belief that competition from established manufacturers would render the project unviable, even if privately funded. “That’s why I think it’s best for the government to focus its attention on Proton and Perodua.”
Economist Adli Amirullah of the Institute for Democracy and Economic Affairs had a similar opinion, saying the government should concentrate on increasing the overseas marketability of the current national cars.
However, if the proposed project were to go ahead, he added, the government must avoid the use of public funds and must produce a public document showing an analysis of the costs and benefits. “Then we can decide if a third national car is the way forward or not.”
He cautioned against having government-linked companies invest in the project, saying it would not be acceptable if there were political motives behind it.
He also said the public might be better served if the government were to concentrate its efforts on improving public transport.
Guan Eng: Third national car project will not use people’s money