Dr M: Auto imports policy could leave thousands jobless

Dr Mahathir Mohamad reasons that this policy will make rich countries richer and result in thousands losing their jobs in Malaysia if we fail in the automobile industry

PETALING JAYA: If Malaysia’s automotive industry is made to compete with those in Japan, Korea, China and Germany, we could very well lose the battle and be forced to close shop, resulting in hundreds of thousands losing their jobs, said Dr Mahathir Mohamad today.

The former prime minister was commenting on a statement by the CEO of the Malaysian Automotive Institute who advocated competition from foreign makes in the automotive industry, saying it was good for the country.

“Incidentally these countries impose conditions and standards which prevent Malaysian cars from being imported into their countries to compete.

“So the consumers in Japan, Germany, Korea and China cannot enjoy the benefits of competition like their Malaysian counterparts,” Mahathir said in his blog.

He also talked about comparing “apple to apple”, arguing that Malaysia’s industrial capacity was not at the same level as those the government wanted us to compete with.

“If we lose we may have to close down. A hundred thousand or so workers, engineers and managers will lose their jobs. Their families will suffer. But that is alright because the consumers will get better cars at lower prices from foreign countries,” he said with cynical undertones.

He also remarked how the government’s policy of supporting imports and hence, “competition” in the market, would see more of our funds drained out of our country.

“Of course a lot of Malaysia’s money would flow out to the rich countries and their workers will get higher incomes. But it is Government policy to support imports and we have to accept it.”

He also said that since it was a consumers’ market, the government should let the consumer enjoy the full benefits of competition even if it meant that their fellow Malaysians would become jobless as a result of it.

“So let us compete and let our consumers enjoy the benefit. The people who lose their jobs would not be able to consume. But that is a small price to pay.”