Car prices will drop when the government implements the National Automotive Policy (NAP) to allow new carmakers to enter the Malaysian market, said the Malaysian Automotive Institute (MAI).
"For now, only new car manufacturers making cars above 1.8cc will be granted a licence and they must be priced above RM150,000.
"But the new policy will abolish that. Anyone can come to Malaysia to build cars of any segment on condition that they are fuel efficient vehicles," said MAI chief executive officer Madani Sahari at the 7th Annual Malaysian Student Leaders Summit today.
He said with the increased in the number of car manufacturers in the country, there will be greater competition and this will naturally bring prices down.
The government had previously said it intended to reduce car prices through "market forces" without slashing hefty excise taxes.
"For now, only new car manufacturers making cars above 1.8cc will be granted a licence and they must be priced above RM150,000.
"But the new policy will abolish that. Anyone can come to Malaysia to build cars of any segment on condition that they are fuel efficient vehicles," said MAI chief executive officer Madani Sahari at the 7th Annual Malaysian Student Leaders Summit today.
He said with the increased in the number of car manufacturers in the country, there will be greater competition and this will naturally bring prices down.
The government had previously said it intended to reduce car prices through "market forces" without slashing hefty excise taxes.
Furthermore, Madani said this liberalisation of the car manufacturing sector is to leverage on a number of free-trade agreements Malaysia signed that will soon come into force and allow for cheaper imports.
On concerns that liberalisation will hurt local carmakers such as Proton and Perodua, Madani said the Malaysian market was too small to sustain them anyway and they must look beyond our shores.
"The way forward for all these companies is to go for exports. We need to liberalise now so car manufacturers will come to Malaysia and use it as a production hub and to export cars," he said.
Madani said even though the policy will only officially take off by 2016, his institution has already receive the mandate to help new car manufacturers to identify their sites in the country.
Also present at the forum session was former Proton managing director Syed Zainal Abidin and PKR communications director Nik Nazmi Nik Ahmad.
'Consolidation needed'
Syed Zainal elaborated on the government's attempt to reduce car prices, stating that the burden should not only rest on the manufacturers.
"There are five stakeholders in the process chain namely the manufacturers, the vendors, the distributors, the financial institutions and the government - the first four are profit-oriented.
"For example, the financial institutions make a lot of profit from hire-purchase loan (car loan), so what is their contribution (to reducing car prices)?" he said.
He concurred that local carmakers must improve efficiency in light of the liberalisation plan and propose all local car manufacturers be consolidated under one management.
"We are not talking about killing the brand, they can be retain it but why not Proton, Perodua, Naza and Sime Darby be placed under one management to standardise and improve efficiency," he said.
This, he said, can help local car manufacturers to become an export force to be reckoned with when the liberalisation begins.
Meanwhile, Nik Nazmi (right) reiterate Pakatan Rakyat's stance that it preferred slashing excise duty as the way to reduce car prices and resolve household debt.
He added that the people need to look to the future instead of insisting that national carmaker Proton remain a purely Malaysian company.
"A few years ago, Volkswagen was interested in Proton but we said no, that it should be exclusively Malaysian.
"But when we talk about pride, we have to recognise there is limitation to what we can do (in a small domestic market)," he said.
The student summit today, entitled ‘Tomorrow Through the Eyes of Yesterday’ is organised by the United Kingdom and Eire Council of Malaysian Students.
On concerns that liberalisation will hurt local carmakers such as Proton and Perodua, Madani said the Malaysian market was too small to sustain them anyway and they must look beyond our shores."The way forward for all these companies is to go for exports. We need to liberalise now so car manufacturers will come to Malaysia and use it as a production hub and to export cars," he said.
Madani said even though the policy will only officially take off by 2016, his institution has already receive the mandate to help new car manufacturers to identify their sites in the country.
Also present at the forum session was former Proton managing director Syed Zainal Abidin and PKR communications director Nik Nazmi Nik Ahmad.
'Consolidation needed'
Syed Zainal elaborated on the government's attempt to reduce car prices, stating that the burden should not only rest on the manufacturers.
"There are five stakeholders in the process chain namely the manufacturers, the vendors, the distributors, the financial institutions and the government - the first four are profit-oriented.
"For example, the financial institutions make a lot of profit from hire-purchase loan (car loan), so what is their contribution (to reducing car prices)?" he said.
He concurred that local carmakers must improve efficiency in light of the liberalisation plan and propose all local car manufacturers be consolidated under one management.
"We are not talking about killing the brand, they can be retain it but why not Proton, Perodua, Naza and Sime Darby be placed under one management to standardise and improve efficiency," he said.
This, he said, can help local car manufacturers to become an export force to be reckoned with when the liberalisation begins.
Meanwhile, Nik Nazmi (right) reiterate Pakatan Rakyat's stance that it preferred slashing excise duty as the way to reduce car prices and resolve household debt.He added that the people need to look to the future instead of insisting that national carmaker Proton remain a purely Malaysian company.
"A few years ago, Volkswagen was interested in Proton but we said no, that it should be exclusively Malaysian.
"But when we talk about pride, we have to recognise there is limitation to what we can do (in a small domestic market)," he said.
The student summit today, entitled ‘Tomorrow Through the Eyes of Yesterday’ is organised by the United Kingdom and Eire Council of Malaysian Students.
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