Datuk Seri Dr Wee Ka Siong. -Star filepic
PETALING JAYA: Ensuring the success of a new national car company can only mean reverting to higher protectionism, which will result in higher car prices across the board, said Datuk Seri Dr Wee Ka Siong.
The MCA deputy president said that Proton was “successful” in the past because of heavy protectionism, that meant higher prices for not only non-national cars, but also Proton cars sold locally compared to those sold overseas.
“There were also many accusations that certain Proton suppliers were cronies who had benefited greatly by supplying low-quality parts at inflated prices,” Wee said in a statement on Monday (June 11).
Prime Minister Tun Dr Mahathir Mohamad had said on Monday (June 11) that the Government intends to launch a new national car company, since Proton has been bought over by China’s Geely.
He said that EON was made the sole distributor of Proton and due to the protectionism for Proton, it became the most successful car distributor in the world, as it went from nothing to being a company worth tens of billions and even owning a bank.
Wee added that it had been estimated that Proton ended up costing ordinary Malaysians up to RM300 billion over the past decades from much higher car prices for all cars and the correspondingly higher financing costs.
He said that one of the main initiatives by the Barisan Nasional Government over the last 10 years was to correct legacy issues of the past by reducing the price of cars, while expanding the public transportation network.
“Due to a combination of tariff reductions and incentives, car prices in Malaysia were gradually reduced over the years, resulting in Malaysians having more choices to buy higher quality and safer cars that they can now afford.
“Many car brands are now selling at a lower price compared with 20 years ago. This has significantly reduced the ownership cost and debt burden of Malaysians,” he said.
Wee also pointed out that due to our local population size, Malaysia is considered a small market for automobiles.
He said that most Malaysians would prefer the current Government to restart public transportation projects instead of starting another car company and being burdened by higher car prices again.
He also said that the country should learn the lessons from Proton and should not burden our nation further with this new colossal project.
“Further clarification is needed as to whether Tun Mahathir Mohamad’s announcement was deliberated and determined by Cabinet.
"Was the announcement a statement or proposal endorsed by the Cabinet?
“If this decision is indeed a PH Cabinet policy, then the government should engage with the rakyat for feedback and heed the response from the masses,” said Wee.
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