KUALA LUMPUR : Malaysia's Trade Minister Rafidah Aziz has
insisted the country's auto sector is still attractive to foreign
carmakers despite the failure of several potential tie-ups.
"Although we have lost two (possible tie-ups) to a neighbouring
country in the last decade, there are still others who are
interested," Rafidah was quoted as saying in the New Straits
Times.
"I still think there is a future for the local automotive industry.
(Foreign players) know that we are serious," she added.
Rafidah's comments followed news of a decision by German carmaker
Volkswagen last week to scupper an alliance with Proton seen as
crucial to the embattled Malaysian car maker's fortunes.
The deal, in discussions for over a year, had been highly
anticipated and news of the failure has seen loss-making Proton's
shares sliding daily as analysts advise investors to cut their
losses.
Rafidah refused to comment on the deal but said the slow
implementation of a revamp of Malaysia's car sector to make it more
competitive had contributed to the loss of the foreign tie-ups to a
neighbouring competitor.
Thailand has become the regional centre for auto manufacturing and
assembly, while Malaysia has been struggling to put in place its
national auto policy, the framework for which was announced in
October after numerous delays.
"Unfortunately for us, because we delayed in our decision to put
into place the mechanisms that would make Malaysia attractive to
the big players, they have gone off to a neighbouring country," she
was quoted as saying in the Sun daily.
"We lost one big partnership earlier on in the mid-90s and I know
of one very big multinational (corporation) also, because we
couldn't decide on the arrangements, they went to a neighbouring
country. So I know of two in the last decade." - AFP/de
