This SPEECH was delivered at the KUALA LUMPUR INTERNATIONAL AUTOMOTIVE CONFERENCE ON NOVEMBER 13, 2013
1.When the idea of a national car was mooted, it was met with widespread criticisms and cynical comments. We were a third world country and we know nothing about motorcar manufacturing. Our market was tiny. It would be a waste of our money.
2.It was easier to simply buy imported foreign-made cars. At best we could import CKD (Completely Knock-down packs) and assemble the cars here. That was as much as our agriculture-based economy could do.
3.But we did talk even at that time of industrialisation, of being an industrial nation. How do we become an industrialised nation if we have no industry other than assembling electronic components.
4.Malaysia has always been and it still is a trading nation. Buying things from foreign countries must result in outflow of funds. This would be bad for our balance of payment. Our trade would be in deficit. Trade deficits are not sustainable. We cannot generate enough wealth internally to pay for our imports. Our raw materials, such as rubber, tin and palm oil exports cannot earn us enough to pay for imports. We will be in deficit.
5.To prevent this we can do two things. We can limit imports or we can increase exports. Among the items which absorb funds in large amounts is the import of cars. The purchase of cars involves large sums of money. When we buy foreign cars there would be a big outflow of funds.
6.In those days we could not think of exporting Malaysian made cars in order to increase the inflow of funds and have a healthy trade balance. Still if we produce our own cars and our people buy them then much of the money would stay in the country. There would be less outflow, less tendency to have deficits.
7.But could Malaysian made cars compete in the domestic market against foreign imports? They could if the price is right. To ensure right prices the Government had to tax imports at a higher rate.
8.This was not going to be welcome by Malaysian consumers. But all countries wishing to promote local automotive industry had no choice but to make imported cars costly. Japan and Korea had done this. Other countries simply make it bureaucratically difficult for cars to be imported. Apart from taxes on foreign cars, standards were raised in foreign countries so that imports find difficulty to qualify. The standards were raised periodically so that foreign cars wishing to enter the market have to be upgraded continuously.
9.Any nation wishing to go into an industry dominated by foreign imports will not be able to match the imports immediately. When, after World War II Japan decided to build cars, the design was atrocious and the quality inferior. The Datsun Bluebird seemed to be an inferior copy of the British Hillman. The car was imported into Malaysia but was not well accepted despite the low price.
10.But we all know how much the Japanese cars have improved. They not only meet the standards of European cars but are often superior to many of these cars. Today no one questions the quality of Japanese cars. Even though the price is no longer low they are able to penetrate foreign markets. Clearly it takes time to improve locally produced manufactured goods to match imported goods. To have an industry, especially automotive, time is required to achieve world standards and to be competitive.
11.The same can be said of Korean cars. Their Pony by Hyundai was of poor quality but now Korean cars meet International standards and are able to compete even with Japanese makes in developed markets.
12.Clearly when a country wishes to enter the car business, a lot of time will pass before their products achieve the quality level of established makes. If the industry is to grow it must be protected at least during its infancy. The protection must be reduced gradually.
13.The automobile industry requires big capital – usually in the billions of US dollars. This is so especially upon establishment. But Malaysia’s national car had a capital of about RM400 million (about USD150 million). It borrowed from the Government 800 million Ringgit. It has since paid back this loan fully from internal sources.
14.Admittedly at the beginning it was not a roaring success despite lower prices. But at one time later on it commanded 80% of the local market and it built up reserves of 4 billion Ringgit. Since the beginning it paid directly and indirectly billions in revenue to the Government. It certainly reduced outflow of funds with its high market share.
15.Unfortunately for political reasons, the successful management was got rid off and then changed twice and the company lost money. At the same time Government decided to allow almost unlimited import of foreign cars from countries which effectively banned our Proton.
16.All these resulted in a shrinkage of domestic market share of the Proton until today it makes up only 27% of the much enlarged domestic market. With almost half the domestic market now taken up by imports, there is a huge outflow of Malaysian money.
17.Who gains? Certainly foreign car makers made much profit in Malaysia. Most of these cars come from countries where our national cars are not able to penetrate because of tax and other barriers erected against foreign cars including ours.
18.But we are very generous. When foreign cars do not meet our specifications we give them exemptions. Some 70 models have been given such exemptions, which reduced their cost and therefore increase their competitiveness against our cars. Why we decide that non-conforming imports are acceptable but our own cars must comply with our standards is a mystery. Surely we must know that this is not good for balance of payments.
19.Of some interest are the so-called free-trade agreements. There is much focus on automobiles. Import duties are to be withdrawn for national cars of member countries. A car is regarded as national if it has 40% local content. Foreign car makers are quick to take advantages of this simple definition.
20.They simply produce their cars in the member countries of the FTA with 40% of the cost incurred locally. With that they can access the markets of the FTA members and benefit from the tax-free status of national cars.
21.One has to remember that these foreign cars have been sold in large number in the manufacturer’s domestic market and in other countries. The cost of development would been amortised quickly so that even if the sale prices in the FTA countries are low, they would still be profitable.
23.Proton’s local content is 90% and its sale is largely in the local market where it has to compete with imports. Even with reduced taxes it cannot sell well in FTA countries. The volume just cannot be big enough and it takes time to amortise the cost of development. In other words Proton is at a disadvantage in Malaysia and in the AFTA countries.
24.So why should we have an automotive industry!
25.Well, let’s look again at the contribution made by a national car industry. First it creates jobs, thousands of jobs not just in producing cars but also in producing components and parts. It enables Malaysia to acquire engineering knowhow. If the country is to become industrialised, it must acquire engineering skills such as designing, modelling, prototyping, testing, tweaking, upgrading and updating and a host of other things required for the manufacture of cars. These skills contribute to the industrial sector. It will qualify us to become a developed country.
26.The oil producing countries have highest per capita incomes but they do not qualify as developed countries.
27.Much of the money expended and generated by the industry stays in the country, reducing the deficits and contributing to trade surplus. This money also contributes to the GDP when it is spent.
28.In fact the contribution of local industries to the GDP and economic growth is what enriches a country, what helps the country to develop. Importing goods, manufactures and services only contribute to outflow of funds and contribute towards imbalance in the trade.
27.The United States is an interesting study. It has 52 states and 360 million people. Basically it is a small world by itself, having raw materials, power and manufactured goods. The states can buy and sell all their needs between them. They really do not need the rest of the world. That is why they can survive even when they have trade and budget deficits. When short of money, they can borrow from their own banks, the Federal Reserve Bank, which can print money when it is itself short of funds.
28.We are not the United States. We need to trade with other countries because our domestic market is small and we need the raw materials and manufactured good of other countries. Trade should be balanced. But when we have to import all our needs we will be in deficit. We can borrow if we cannot earn money through exports. But loans have to be repaid especially loans by foreign banks. If all our money goes toward paying for imports we cannot repay the loans. We will be bankrupt like Greece.
29.Proton may not be earning much money through exports. But it is doing the next best thing, it is preventing money from flowing out to buy foreign cars.
30.Taking everything into consideration, the national car has contributed much towards Malaysian economy and its development. To know how much we save we can compute the total sum Malaysians pay for local-made cars and add that to our imports.
31.We sell roughly 600,000 cars a year. Half the number would be local-made cars. Assuming an average price of 40,000 RM, the total sale value would be about 12 billion Ringgit. That would be the additional amount that will flow out if all cars are imported. It would certainly increase the deficit.
32.The national cars clearly contributes much towards reducing our deficits. Additionally it has helped in the establishment of the engineering industry extending well beyond automobile manufacturing. It has certainly helped in qualifying us as a developed country.
33.The national auto industry must be sustained if we are going to have a positive balance in our trade.
Salam Tun,
There are many ways to industrialize our nation. National Car should be a pride.
It’s a pride for Japanese owning a Toyota, Korean owning a Hyundai or German with a VW.
But, Malaysians owning Proton? Who is proud? And I’m not saying about Proton as a company, but owning a Proton product.
I can remember in my younger days (some 20 years ago) when my neighbour own a Proton Wira. It was considered an upgrade from an old Toyota Corolla then. Yes, an upgrade. Being just a child at that time, I do think highly of Proton Wira.
Fast forward 20 years, Proton’s product is terrible. While the rest of car manufacturers launch models after models, Proton has failed repeatedly.
1. Design is not attractive, and half the time a copy
2. Its distributor, Proton Edar (and EON previously), should be axed
3. Cost of ownership is high
1. Problem of the product
I believe you motion that we must trade real/tangible products, and Proton is doing that. Where is the emphasis to improve the product, which is the core for manufacturing? I know that Korean giants such as Hyundai/Kia or Samsung/LG are ‘importing’ talents from Japan. Even China are paying the Japanese to acquire how to manufacture product efficiently, and to manufacture good quality product. Toyota Camry up to 2006 were still that traditional Japanese design. Then that year they changed the car look completely, because it’s not designed by a Japanese anymore. Does this make the Toyota Camry any less a Japanese car? I don’t think so.
I suppose Proton doesn’t want to reflect to themselves, that they are weak. There’s no shame in admitting you’re young and learning. Pay to gain knowledge experience is normal. We pay to go to the university, the government pay teachers to teach at school for the younger generation.
Can Proton afford reasonable salary for these talents? I think so. If Proton pay as well to their engineers as well as how they pay office admin in Petronas. Tun, if you are still in any way influential at Proton ask them to design a produce a Quality Proton Car.
2. Proton Edar & 3. Cost of ownership
It is very clear that the Distributor of Proton is terrible.
We seldom hear about Proton Edar taking the hit. In my opinion they should be fired. Which distributor should be spared when the Market share dropped that much?
Proton the manufacturer must seek out for a distributor. There are plenty of decent distributors of automotive in Malaysia alone, more overseas.
Tun, if you have influence please do something. You already have UMW who is doing what I’d say a good job in distribution of Toyota in Malaysia. UMW too is a GLC. What’s with the big gap between Proton Edar and UMW Toyota?
Even appointment of overseas distributors, I never see or hear that Proton is seeking out, or in search of distributors. Proton is not Toyota or VW. Good distributors will not come to your door knocking to ask for distribution rights of your products.
3. The Cost of Ownership
Growing up hearing so many experiences of Proton owners, one thing is common. The cost of ownership is bloody high. It is bloody high partly because the components break down so frequently, (e.g. power window module). So this is related to (1) about the product quality. There is no meaning saying that Proton helped create jobs, local manufacturing of auto parts, when the parts are sub standard. You can understand this being the first 5-10 years when the part manufacturers are ‘learning’. How is it that Toyota Vios assembled in Malaysia, who uses a local part for its power window mechanism doesn’t face as much problem as the Proton window mechanism?
Then related to (2), we all know that the distributor is responsible for After-Sales Service. The distributor must think how to lower its labor cost rate and yet not compromise quality. Malaysia has one of the cheapest Hotel rate in the world. Because we have very competitive labor rate. I don’t see how we cannot have good labor rate in the car workshop either. Distributor of Mercedes, BMW, Toyota, Honda can charge what they like. Distributor of Proton must consider to have a labor rate relevant to its competitive edge as how the Hotel industry is capitalizing. BUT not at the expense of hiring sub-standard employees mind you! Technical wise, spend money to hire engineer. With that big of market share, you can still afford it.
Finally Tun, on industrializing the nation.
I have been abroad quite a bit, and you are known and respected as far as countries in the Africa region. Although in my view, we could have focused more in attracting foreign investors and have more car assembly plants yet still be able to achieve industrializing Malaysia.
Look at Perodua or Naza today, I don’t see how it is not giving as much job opportunities or growing the local suppliers as much as Proton would have contributed.
Look at Asus, Taiwan. Today has its own products when they were once OEM. And the list goes on and on. There are many as effective ways to industrialize the nation. I disagree that clinging on to Proton is in any way ‘a critical success factor’ for industrializing Malaysia.
But since this is a fact and what do I know, maybe clinging on is less damaging and Malaysia would like to continue to bleed rather than cut its lost. If that’s what we want to do, then stop the bleeding. Consider (1), (2) and (3).
Good health Tun.
My humble opinion again and some questions,
1.Thank you very much for sharing the history behind the birth of our national car (Proton), the intention and thoughts behind this is just superb! Undeniably, Tun is one of the most respected nation architect from South East Asia. There is still a lot to be done but you have definitely accomplished a lot.
2. However, after your retirement, we are just lagging further and further behind compared to the others. Take a look at the PISA report that just came out recently. We are standing at ranking 54 out 66 countries. Some other south east country topped the list.
3. The explanation of outflow and trade deficit is an eye opener for me and this is one point that I would not have thought of until you explained it here. Bravo!
4. You mentioned that “to have an industry, especially automotive, time is required to achieve world standards and to be competitive.” How many more years do we (Proton) need? Until we are really critical of ourselves, we will not improve. There needs to be a strict quality control leader. Start from the top. And, judge by the results and performance. A leader who will not comprise on their principles to keep thing up to the standard and instill the same mindset from top down. In the process, there will be objections and obstruction from various quarters (moving out from their comfort zone is not something too appealing for a lot of people). But, this needs to be done.
5. There is two things that our national car lacks. First is quality control, second is the outside design. The second point is probably more important to the people nowadays but the first point is what will bring our national car to the worldwide market. If a car is known to have problems lacking of quality control, people lose confidence in it.
6. In one of the point, Tun asked who gained by bringing in the recon imported car. The people who have the absolute right to the AP gained. And, the country lost due to the outflow.
7. When signing these so-call free-trade agreements, the effects of these agreement must not have been thought carefully at that time. But, instead of blaming this, again, we should be critical of ourselves and after so many years, Proton should have been much more capable than what we are today. When the local market share is at 80%, the top management have not done enough to make sure that our local car maker can stand on their own feet.
8. After so many year, where are we in term of acquiring the engineering skills such as designing, modelling, prototyping, testing, tweaking, upgrading and updating and a host of other things required for the manufacture of cars. Where are we today?
9. Where are we in term of income per capital household today? We are still way behind compared to our neighbor.
10. Talking about country deficit, even without opening the automotive market completely, our deficits are growing year by year. mind to share your thoughts about where our country stands today and what is your thoughts?
11. To bring our country to a next level, there needs to be visionary leader who is capable of seeing the potential and issues beyond what others can. The future lies within the new upcoming generation of leaders? Who could it be? Which party has this potential? Caliber, charismatic, visionary young leaders?
Wish you the very best of health there..
Proton!!! where & what is Proton now?? Our pathetic national car made in Malaysia, that I am SO ashamed to know is made in Malaysia or even tell our foreign friends.Proton’s birth is at the same time as of South Korea’s Hyundai & Kia, Look what Hyundai has transform into?!!!! we claimed we spent billions on R&D, R&D what shit?? but yet we copied from Japan’s Mistubishi – Galant (Perdana), we even paid hundreds of million for the Tiara design from France, And the Tiara design from France has been obsolete then, and yet we bought the design? R&D where? where did $$$ Proton goto…? look at our quality of cars produce by Proton.. our infamous – power window!!. We can’t even compared with the Korean made cars or even china made car- BYD. We are a disgrace!@!! Proton is a absolute DISGRACE!!! how old is Proton in Malaysia??!!! don’t talk about national pride! its a national shame!
Asalamma’kum Tun,
Hope that your health continue to improve!
You brought up a very interesting, history, if I may call it. Wonder whether our institutions of higher learning make a case study out of this? This could be a very good case study for Business Management.
You presented the facts of the, case if I will call it.
What the management of the national car did not realise was, when the sales was good, the quality of the product did not improve. If one were to compare our national car, say with Korea, we started earlier, but the Koreans are far ahead of us today, WHY?
The simple answer is this, improvement and continuous improvement. I remember the early Kia – I heard of many compaints, too. Today, they are comparable to the Japanese cars. so is China made cars.
In any company or business organisation, quality is always almost synomous with the brand. I was just reading about HEINZ tomato ketchup, which has a history of over a hundred years old. The emphasis on quality and continuous improvement is their top priority eventhough they are an established brand.
I think this is what was lacking and might be the key to the downfall of the Proton brand. what I cannot understand is the cars that were produced for export has a much higher finishes than for the local market. This is where the top management comes in. The emphasis is on QUALITY must take second to none, whether it is the suppliers or the workers.
There is a difference between a defect and low quality. The Protons perceptions amongst the Indonesians is that our cars are of LOW QUALITY. How do you sell a product when the perceptions amongst the consumers is such? If we can improve on the quality and be able to penetrate the Indonesians market, Proton need not look at our domestic market.
If the current management of Proton wants to be in this market, than they must produce a Quality product with a competitive price. If they cannot do this then, like any other business, they might as well save the rakyat’s money.
PROTON came from ‘Perusahaan Otomotif Nasional’ or National Automotive Industry in English.
PROTON’s been carrying this nation name since it first founded until today, without turning back, keep driving forward to prove that even a small country like MALAYSIA have the capabilities building car’s comparable to the other highly developed nation. Despite bad allegation and underestimated, PROTON keep on working in advancing Malaysia automotive industries.
Without PROTON, there will be no PRODUA, no NAZA, and there will be no foreign car assembling factory in malaysia. We forgot that with the establishment of PROTON and the hard work of our fellow MALAYSIAN, we have grown and got to where we are today within the competitive automotive industry. PROTON is the main element that ignite Malaysia automotive industries; investment made channeled for automotive training, enhance automotive knowledges and producing competitive automotive engineer and highly skilled worker.
PROTON is the back bone of our automotive industries and it should well be the PRIDE of our nation. Sadly, we have no pride towards our own product, Praising foreign product without second thought, all we did is condemning PROTON; slight problem with power window became a huge deal, Using model from mitsubishi causes havoc, labeling all PROTON cars fake and thought everything that proton ever did was copying foreign car.
Even when PROTON successfully bought LOTUS ownership, (British manufacturer of sports and racing cars and famous for it highly successful Team Lotus in F1) and using the technologies acquired from Lotus into PROTON to improved the quality and performance, despite all that effort and hard work done, malaysian continue condemning PROTON.
PROTON Motorsports :
– Proton won China Rally where it clinched the Asia Pacific Rally Championship driver’s and manufacturer’s titles and capped off a dominant season for the Malaysian car maker.
– Proton finish 1–2 in the APRC driver’s championship
– Satria Neo S2000’s dominant performance all year long also crowned Proton winner of the coveted APRC manufacturer’s championship ahead of Mitsubishi with Subaru finishing the 2011 season a distant third.
– Proton become the first car manufacturer to win all eight major individual titles in the FIA APRC which includes: the overall FIA APRC driver’s title; FIA APRC manufacturer’s title; the FIA APRC Teams Trophy; the FIA Asia Cup driver’s title; the FIA Pacific Cup driver’s title; the manufacturer’s title in the FIA APRC Rally Cup for two-wheel drive category; the FIA APRC Rally Cup two-wheel drive driver’s title; and FIA APRC Junior Cup driver’s title.
* as a malaysian i thanked u, TUN for all the fight u fought to secure our national PRIDE. PROTON have come so far in the automotive industries and without a doubt PROTON will always be the backbone of our automotive industry and the malaysian pride.
Tun
On the National Car Project, the concept was well-conceived and brilliantly executed at a time when the country required an industry which bridged politics and socio-economics. Yes ! South Korea was way behind us in the 1960s. But thanks to her Western allies and the sufferings she went through during the Korean War of 1951-1953, a motor engine expert was alleged to have been sent to Korea in 1972 from BMC to help start the motorcar industry there. Smart. As we all know, the engine is the key to any motorcar assembly or manufacture. But, through your encouragement, we did it through a faster route which was to import the engine and manufacture whatever which could made locally. This has been the hallmark of success of the Proton. The consolidation of the marque took place during most of your 22 year Administration. The acquisition of the Louts and Agusta marques were a step in the right direction in the building of a sprawling motor conglomerate. As in politics, in business, there were big opportunites which came later. Unfortunately, these opportunities appeared after your 22 Administration during which time, the authorities were distracted and were doing other things. Companies like the Jaguar, Saab, Volvo and others were available for ownership. Any acquisition of these would have given a perfect fit to the Proton business. But these opportunities were lost.
Your idea of Proton is just ideal for a country like Malaysia. In terms of political, and socio-economic benefits this idea reached out far and wide. As a result, from a simple import and sell industry in the esoteric sense of the word, the country now has a huge motorcar related industry giving jobs to thousands. What is better than this ?
A new approach to secure a source of engine which governs the design of the chassis , is to partner a motorcar manufacturer anywhere in the World for an engine which is unique to the Malaysian market. We have to decide whether the Proton is for profits or political socio-economic benefits or both in view of the size of the Malaysian market. The key to the success of the Proton is the price and its quallity. It is difficult to compete with the likes of the established marques and taking a practical view, the Proton should always in the area of the market where there is always more demand, taking note of the fact that foreign marques keep on increasing their prices. The Malaysian market is the governing factor in the sales of the Proton. With different new engines from different sources, the original Proton could be produced with different chassis to widen the range and its acceptability.
The Proton concept is definitely a part of the general enhancement of the Malaysian economy. A classic development of a general economy as followed by Taiwan and South Korea was the zero level development of the textiles industry followed by the manufacture of textile machinery and small arms (light industry) and the concomitant establishment of ‘sogo-soshas’ of trading companies and banks. With the establishment of the motorcar manufacturer, a steel mill was founded. From 19th century India to 20th century Taiwan and South Korea, this classic model was followed. In Malaysia today, we have all the ingredients for a full-fledged industrializtion. But what Malaysia do not have is the 100% support of the United States which was given to Taiwan and South Korea because of their special war-time relationships, as regards quota, cheap money, so on and so forth. And the TPPA runs counter to the ambitions of our beloved Malaysia.
However, it is to your credit Tun, we have these very building blocks still available and the proposed power supply as well. Your vision is availabe and it is up to those responsible for enhancement of the general economy to do the needful.
Finally, a review of the whole motor car industry needs to be done with the manufacture of the Proton as the centrepiece to ensure the survival and expansion of an industry which is essential for modern industrial progress. It would be a terrible waste if we abandon the Proton as if nothing had happened.
As a footnote, the Germans did not develop Mercedes, BMW etc for fun. In the 1930s these famous companies were producing aircraft engines for Messerschmitt and Fock-Wulf and the Japanese Mitsubishi was producing the No 1 fighter in the World, the ZERO. After World War II, all these companies reverted to making products for peacetime purposes and are the bulwark of their countries export successes since 1945.
Yes ! I am full of optimism for your brilliant idea of the Proton and those who will be responsible will have to consider the full options to pull Malaysia into Vision 2020 with Proton as the centrepiece.
salam Tun,
– happy to hear your are on the road to recovery. pls stay healthy..
– Malaysian should test drive latest PROTON’s products, Suprima S & Preve.with all the extras + electonics gadgets + safety fixtures much more better than foreign models of the same class…. you will fell in love with this babies. if this PROTON babies are to rebadge with foreign logo, the cost would be twice higher.
– PROTON comes along to prove that they are serious player in auto industries with the latest models. we can still find many PROTON earlier models like SAGA, WIRA , SATRIA zig-zag across the country..proves the quanlity of national cars.
– its was a good vision with noble intentions… thanks Tun, u make it comes thru for a poorman to be able own a car.
– salam.
COMPARE AN APPLE WITH AN APPLE
AN ORANGE WITH AN ORANGE
EUROPE TO EUROPE
ASIA TO ASIA
SMALL COUNTRY TO SMALL COUNTRY
BIG COUNTRY TO BIG COUNTRY
BE THE BEST WE CAN BE
THE BEST OF MALAYSIAN WAY * NEGARA KU
BE LATE THAN NEVER
YES WE R BACK THAN WESTERNS
BUT NOT FAR BACK OF MOST ASIANS COUNTRIES
LIKE VIETNAM, MYANMAR etc
WE R DEVELOP IN A MODERATE WAY
THIS IS A HEALTHY GOOD SIGN
NOT BEING LOW NOT BEING HIGH
THE NEXT LEVEL OF THE HIGHEST FLOOR
IS THE GROUND FLOOR
WE DON,T HAVE TO B IN THE HIGHEST FLOOR
IS WHAT WE WANT THAT MATTERS
NOT WE WANT TO BE NO : 1
NO : 1 IS NOT A MEASURE OF SUCCESS
ALL WANT TO BE NO : 1
THEN WHO BE NO : 2
ALL WANT TO BE THE KING
THEN WHO BE THE PEOPLE OF THE KINGDOM
WHAT WE WANT TO BE THAT MATTERS MOST
NOT WHAT PEOPLE SEE ON US
NEGAR KU ! CARA KU !
Qz merasakan menaikkan duti import sehingga harga kereta dari luar negara mencecah ratusan ribu ringgit kemudian menggunakan wang tersebut untuk menaikkan industri automotive, itu adalah langkah yang bijak dan wajar. Namun, perlulah ada tindakan susulan dalam memastikan bahawa industri automitive tempatan dapat bersaing tanpa bantuan kerajaan.
Qz juga merasakan bahawa rakyat Malaysia perlu dijelaskan sekali lagi kenapa perlunya kerajaan mengenakan cukai import yang tinggi serta kenapa rakyat harus membeli barangan buatan negara. Selain itu, negara juga perlu membuat kawalan dan pemantauan terhadap keluar masuk wang negara. Pekerja asing yang menyalurkan wang mereka ke negara asal, jadi, kurangkan kebergantungan terhadap buruh asing.
Qz juga ingin menyentuh isu kesedaran generasi sekarang akan sejarah, rakyat perlu diingatkan kembali akan sejarah. Ingatlah bahawa Malaysia masih muda dan terdapat banyak potensi yang masih boleh diterokai. Malaysia sedang kearah membina sebuah negara yang bertamadun, mempunyai peradapan, tatasusila dan kesopanan, jadi, jangan rosakkannya. Ingin Qz ingatkan “Apa gunanya sebuah peradapan jika kita tidak beradap”
Qz merasa gembira apabila generasi akan datang merasa bangga duduk di bawah bumi bertuah ini. Qz teringat kembali zaman sekolah, murid menyanyikan lagu negara ku sehingga kini, lagu yang sama dan bagaikan tiada siapa yang mengambil ikhtibar daripada lagu tersebut, lagu tersebut penuh dengan mesej dan makna.
Salam Tun,
rasional untuk membina industri otomobil sebagai satu kaedah bagi menyekat aliran keluar wang negara memanglah satu strategi yang sangat berkesan. Seperti yang Tun jelaskan, mungkin jabatan statitik boleh beritahu kita entah sudah beratus Billion RM yang telah diselamatkan melalui Proton dan berapa ratus billion lagi jumlah cukai import yang telah dikutip daripada kemasukan kereta luar, hatta memberi gambaran sebenar keberuntungan pemilikan AP kereta mewah.
Saya tinggal di KL dan saya lihat jumlah kereta bukan-Proton lebih banyak di jalanraya. Dari situ saya buat tanggapan bahawa minat orang Malaysia terhadap kereta Proton tidaklah begitu menggalakkan, kalau yang memandu kereta Proton pun mungkin sebab utama ialah kekangan kewangan. Saya akui saya sendiri, tidak teuja untuk pandu kereta Proton sebab desain kereta Proton, kecuali Satria Neo, sangat ‘mengharukan’. Seandainya Proton dapat menyiapkan kereta dengan desain yang lebih meyakinkan, saya pasti berduyun-duyun peminat BMW, Merc, Audi, VW, Toyota, Porsche dan Kia contohnya akan membeli kereta nasional.
Kalau kita lihat kereta Korea jenama KIA contohnya, mereka telah mendapatkan khidmat perekabentuk dari Itali – dan desain kereta KIA jauh lebih bergaya cantik dan dinamik dari kereta Proton. Begitu juga kereta Jepun, seperti Nissan dan Toyota.
Saya tak suka kritik industri kereta nasional atas sebab-sebab pertukaran wang, namun saya percaya Proton wajib pertingkatkan kemampuan mereka untuk menandingi dan memberi nilai yang terbaik kepada rakyat Malaysia, jika mahukan sokongan malahan kebanggaan sebenar kepada pemilik kereta nasional.
Pendapat saya, bahawa Proton jangan lagi beroperasi atas dasar-dasar ‘perlindungan’ dari kerajaan, tapi buktikan bahawa staf di Proton mampu mencipta enjin yang setanding BMW dan Merc, dan tidak lagi mengguna model Jepun (atau Renault) sebagai arastanda pembuatan kereta Proton.
Apa Jua Komen mengenai Industri Kereta Malaysia Proton
Buruk Baik Kita teruskan
Buat apa Semampu kita
Bila lagi ?
Be the best we can be
Cuma AMARAN pada siapa yg memiliki Proton Kancil
Kancil TIDAK BOLIH MASUK Singapura
Sebab ada Singa
Assalamualaikum Tun,
Let me share some thought on our national automotive industry. I’m a lower income Malaysian, so let me speak as a voice from this group. To me, Proton doesnt need to compete with imported brand to see whos the best, Proton should instead focus to take care of lower income citizen. Why dont Proton focus on making cars with price below RM50K, with the best quality possible. Then tax the imported cars to make all of it to be above 50K. Proton dont need to build Preve or Suprima that cost almost the same as the imported brand. Just do the best in making sure the quality for the lower class car. To me Proton just trying to be hero, trying on everything without focus and priority. There’s no use even if Proton can make a car like a Ferrari if our citizen still cant afford it. I thought Proton exist to help the malaysian, no? Just keep on making high price car like right now, and see how Proton going to fail. Please focus on helping the rakyat instead of for pride that Proton can do this and that just like other brand.
I’m not ranting but just want everyone to know how it is to live in 2013 with lower income. The country can progress but dont leave the majority rakyat behind.
Dear Tun,
I’ ve driven and owned local cars such as the Proton Saga, Satria and Kenari with low maintenance cost. All with no problem and I managed to sell the cars at profit. Later I thought I should upgrade myself and owned foreign cars but I found out that maintenance cost was high and managed to sell at loss. Still stuck with one and still trying to get rid of it. Fact speaks for itself.
Take a good rest Tun. Semoga Allah s.w.t panjangkan umur Tun berdua. You are still relevant to the country and the world.
Salam Tun,
Some people still want to harp upon Proton power windows, obviously they choose to ignore or are ignorant of the fact that:
PROTON HAS IMPLEMENTED A LIFE TIME GUARANTEE FOR ITS POWER WINDOWS FOR ALL DOMESTIC MODELS!
If you encounter any problems whatsoever replacement parts are free of charge.
This misconception about Proton is prevalent and popular mostly among ‘urban’ Malaysians who think that anything made or managed by Malays are lousy and inferior and anything imported is superior.
Just to share my personal experience about the much vaunted VW Golf Gti & Tsi. It is a coincidence but three of my relatives and friends encountered numerous problems within 2 to 3 years of ownership prompting two of them to selling off their Golf and one still holding out his luck that his priceless Golf will remain trouble free.
So much for misconceptions. Get well soon Tun.
DAPshit
Dear Tun, sorry to have missed your speech. L
Get well soon. John Mansfield
Assalamualaikum Tun,
1. Get well soon Sir.
2. Automotive industry is basically an industry which is high tech and not easy to grow. The ecosystem of the industry itself is hard to manage locally.
3. Proton requires a new system to control their ecosystem of component producers. A higher standard (KPI) should be set on these component producers. Engine parts, high quality materials and assembling procedures should be emphasised internally.
4. Changes are not easy, but good change is necessary to move Proton up to be at par with the industry leaders. I do think Proton can simply do it as they already got the people and skills, Proton just need to be focus and polish their work thoroughly. ‘ok la’ should be deleted from Proton dictionary permanently.
5. Get a good rest and get well soon sir.
Best regards,
fbm
Salam Tun,
Every nation needs it’s own indigineous industry to propel the economics and innovation forwards. Every Malaysian should be proud with Proton. At least, we have a car that we could claim developed by our own kind.
The problem with Proton’s condemner is that , they are mostly Malaysian in identity but “Alien” in their way of thinking. If ever, other nation wanted to invade Malaysia, they will surely give it to the “alien” nation as long as they got something else in exchange.
In Korea and Japan, almost all cars are Korean and Japanese, respectively. Korean do not buy Japanese car and it is very unlikely to see Japanese driving a Korean car or continental cars.
Surely, with many Malaysian having “alien” thinking, the protection is still needed for Proton. AFTA is an example of empty promise of free market for Proton but no new market is captured and easily taken. So much so, the TPPA promises is bound to be very promising in the tongue but empty in the content and context for Malaysia firm and companies. Empty in heart and would be punishing to the Malaysian citizen.
We know for sure Korean car like Hyundai or Kia once had big quality problem. Now the problems are gone and they have penetrated American and Australian market. The same should be done by Proton. I hope the rate of design changes, technology upgrade and automobile features are rapid enough so that Proton could compete reasonably well with other brands but the news are not coming out to us as rapid I wish it could be. I dont know what happened to Malaysian engineers and management in Proton. Are they lazy or they do not have motivation, drive to do the required changes.
For creating Proton, my deepest thanks and congratulations to Tun Mahathir. Proton Wira was my first car. It was a good car and I have no complaint at all.
This is a well written piece. Some commentators have labelled some fellow Malaysians as “Proton haters”. I believe Malaysians do not hate Proton; in fact we all would love to be proud of Proton, but Proton perhaps does not give us a good enough reason to do so. I can definitely say so for myself, and in fact I’m happy that we have a local automobile industry. But the unfortunate truth is, the quality of Proton cars is not on par with that of most imported cars. I agree with you that time is needed for Proton to improve, but I also understand why some Malaysians would rather spend more on a foreign car than spend less on Proton. What Proton needs to do is to improve the quality of their cars. I’m not suggesting it would be easy, but it just is not sustainable to keep producing inferior cars and expect domestic consumers to keep shelling out for them just because Proton is our national brand.
Who say bmw, mercedes, volkwagon jaguar, bugati veron, ferrari, toyota, lexus, infinity dont have problems. All cars have problems and the only type of cars that dont give problems is a stationary car or a car no one drive. The beauty abort cars is that by the time the manufacturer straighten or correct most of the problem or design fault the manufacturer change car design, engine or totally new model. This make the industry alive and kicking. So the better way is buy a car is to base on safety features and the rest is just about transportation. The new model of Proton are nice but the safety features are limited or less. The best Proton model is still the SAGA as there are still around after so many years. This shows that the car have longevity if you know how to take care of it and it can still take you around. All cars surely have at least one problem or design fault. I was inside a friend new BMW and the front passenger door open by itself when driving on a not so smooth road, luckily the passenger wearing safety belt.
Dearest YAB Tun,
Get well soon Tun! Please take a good rest…please do not accept invitations to attend functions/events for at least 1 month. Tun kena jaga kesihatan.
NATIONAL AUTO INDUSTRY:
I totally agree with the reasoning of having our own national car – it opens more job opportunity for our people and also can minimize the outflow of money. In my opinion, each of us must support our national car industry. The extra money/cost (if any) that we have to pay is nothing compared to the benefits that we are getting by having our own national auto industry.
‘NO to TPPA’.
Thanks Tun.
*** May Allah SWT bless Tun and family ***
Hope U in good health , Tun
Do what Malaysia wants to do
Produce its own Cars , Air Planes perhaps Military Weapons
We are Late
IT,s Better Late than Never
DO THE BEST WE CAN BE
Singapore cannot afford to built Car Industry
BUT They earn Revenue from their Car Industry
The Best Revenue in the World
Without Producing They Earn Sin Dollars $80000 to $100000 COE per Car
The COE which is a Piece of paper cost a few cents BUT value $100,000
That besides the usage , the every Parked Cars , the ERP & a lot more
When the Car Manufacturer just earn a few Dollar of their Hard Work
They say they have limited space BUT yet they bring in more Foreigners
That Squeezed the every Life of Singaporean
Yg Bhg Tun,
GET WELL SOON!!
May Allah SWT bless you a speedy recovery.
May you use this restful time to recharge and energize.
Salam Tun
to the national car haters.. think at least..
if we hate PROTON we buy others..
why not we use the same hypnosis for the other thing we hate.. example
stop producing computers locally because taiwan and china can produce cheaper.. stop sending our kids to government schools or universities because outside they have international standard.. stop manufacturing thing locally because Korea, Japan, Germany can do better and cheaper.. just be a mere farmer like before 80s… or if hate our politician too, why don’t we import prime minister and other ministers because mat saleh can talk better and “more sincere” than local.. just be a bankers like Britons, then we can have a bank holiday whenever we want.. others we sub out.. signs all FTAs & TPPA.. lets mat saleh take over all services because our front people are lousy.. sure no more haters.. then everybody can own bmw, mercedes, jaguar, bugati veron, ferrari, toyota, lexus, infinity, bla4..
to goverment agencies.. please take care our own pride and legacy.. stop giving exemptions to others.. when they declared to miti on the car price at RM xx, they sold it at RM yy price and miti has done nothing.. jpj.. custom.. lhdn.. bank negara.. and others please back the national cars
Salam Tun,
Hope you are doing well.
I agreed with all your points Tun. Tun, to promote Malaysian cars and to reduce Imported cars (in Malaysia) is it a good idea if the government cut off the road tax for national cars’ users? So that citizens will more focus on our national cars instead of Audi and BMW. But Im not sure whether it will increase the government income or fall.
Zimbabwe was said to have a BMW assembly plant in the 1970s. Later the FTA said if the signed the free trade agreement, the industry would flourish & creates more jobs in the ports. When they signed the FTA agreement, the factory closed down and less job created afterwards. Later the economy slumped down. The story was not tell in the mass media nor the text book in school.
Automotive industry is a symbol of country success story. Many of big names are national car except for British cars which own by foreigners. US brands, Germany brands, French brands, Korean brands, Japanese brands and even China brands are all protected by their own government except Malaysia brand, people and politician are not interested to protect and to own.
Without the automotive industry, the domino effect will not take place: car insurance, car services, car repairing, part suppliers, transporters, and so on. Even though PROTON is producing car locally, they also creates job in ASEAN countries and other part supplier countries as well such as Japan, China, and Germany.
Yes, PROTON cars is less quality and features because they had and have a “not very good people”, example engineers or managements who do not know how to fix broken bolt and others. But recently they manage to produce a high features car and even better than the sushi cars or steak cars at its price and class. They also improving their own engine and planning to have latest technology engine in par with Korean & Germany makers.
If you still don’t believe it, try go a test drive PROTON car and compare with Japanese cars at the same price level – if you are daring enough!
Assalamualaikum Tun.
Oleh kerana kita bercerita pasal tak berapa sihat, maka saya sambungkan lagi cerita bab berubat dari gangguan makhluk halus.
Untuk menjaga akal dan mental agar berada pada tahap normal sama dengan orang lain, bermain catur boleh dijadikan hobi sampingan.
Ia mengekalkan momentum keaktifan mental kerana mengalami gangguan bermakna ia menganggu akal fikiran dan mental secara berterusan, termasuk gangguan pada fizikal serta jiwa.
Walau bagaimanapun, dalam buku Penenang Jiwa karangan Imam al Ghazali, bermain catur dikategorikan sebagai permainan yang membuang masa dan sia sia oleh Saidina Ali r.a kalau tak silap.
Namun pada ayat bawahnya Imam al Ghazali menulis yang saya fahami bermainlah catur mengikut kesesuaian tanpa membuang masa.
Namun saya dah tak berapa bermain catur.Sebab saya malas nak mengingat variasi dan asyik kalah dengan budak sekolah. Lagipun ia memang membuang masa dan sia sia sehingga meninggalkan perkara yang lebih penting.
Dalam tiga minggu ni ada chess world championship antara Anand vs Magnus Carslen. Pertandingan yang hebat sejak era ‘Perang Dingin’ Soviet dan US.
http://www.susanpolgar.blogspot.com
Terima kasih Tun.
Assalamualaikum Tun.
Saya dapat tahu Tun masuk IJN. Semoga cepat sihat.
Saya pun baru nak pulih dari batuk, selsema dan demam. Memang musim sekarang. Musim demam.
Dah dekat 2 bulan saya eksiden motosikal seperti yang diceritakan dulu. Tulang ibu jari patah makin pulih. Minggu depan akan ada appointment pakar kali ketiga.
Lepas dianalisis pasal eksiden tu, saya menyelesaikan puncanya dengan membuat satu keputusan.
Saya tidak berminat nak terjun ke bidang ‘politik’ bahkan kalau mengikut kemahuan saya, saya juga dah malas nak kerja. Rasa nak duduk kat sekolah pondok je atau duduk dalam gua…ha..hah
Walau bagaimanapun, hidup mesti diteruskan. Kita mesti berusaha selagi hidup.
Mungkin saya perlu terjun ke ‘bidang politik’. Sesuatu yang kurang diminati. Tengoklah macam mana performance nanti.
Terima kasih Tun.
Salam Tun
I still remember when my dad bought his first white Proton Saga 1.3L in 1985. The entire neighbour came and put their hands on my family car, knocking and pressing away.
In the begining, everywhere we go, heads turn.
The first two cars I have ever owned are Proton, but I have UBAH to support Japanese and Continental cars since. Not because I am not patriotic but because the quality of Proton does not live up to Rakyat’s expectation.
Among all, the most annoying are the “semi-auto” issue; now I am not referring to the transmission but the power windows.
Most proud Proton owners like myself will notice that in the first year, the power window is in “Auto” mode as per the spec…but thereafter, the power windows will mysteriously become “Manual”; forcing you to make a firm grip of the window and pull it up while at the same time pressing the button for the window wind up. After a while, some driver simply gave up by opening door when paying toll or getting parking tickets.
For nostalgic reasons, I still keep my 1999 Proton Iswara as a spare car today, but, everywhere I go, heads shake.
Why a national project can manufacture such an inferior products? I was told that Proton has been pampered under government’s protective blanket for too long. During the incubation period, Proton enjoyed pricing advantage through heavy tax and duty imposed upon competitor imported cars. Therefore, Proton never learns to be competitive, it can’t even stand on its own feet without sucking the local market dry.
Spokesperson said the cost of building Proton car is high, but I have heard terrible rumors that the procurement department takes kickbacks when buying components. Some components are locally made but were shipped to overseas and made a U-turn back to Malaysia as imported parts, thus enabling middleman and accomplice to split the profits. I used to discard those unconfirmed rumors with a smirk, but I have spent a good numbers of years in the United States that some of the following confirmed facts which I have posted on 3rd May 3013 can’t be denied.
“I was in the market for my first car in 1996, but was shock to learn that the price for a Proton Wira 1.5 Auto can actually get you a brand new Volvo in USA!
America has a higher standard of living and higher cost of operations, the price for their cars, be it American or imported, should be higher as compare to that of Malaysian’s price. But that’s not the case, Despite of Afta and all; Malaysia’s car prices are still unreasonably highly priced.
The following are some painful examples:
The price for a Proton Saga 1.3 Standard (M) Solid is RM 38,361. With the same price, you can get buy a 2013 Ford Fiesta, 2013 Nissan Versa, 2013 Smart in America.
The price for a high-end Proton Inspira 2.0 Executive (CVT) Metalic cost RM 92,015, guess what can you buy with that same amount of money in USA? Your choices are : 2013 Audi A4, 2013 BMW 1 Series, 2013 Honda Odyssey, 2013 Hyundai Sonata, 2013 Jeep Grand Cherokee, 2013 Lexus CT200h, 2013 Mazda CX9, 2013 Mini Cooper Hardtop, 2012 Nissan Frontier, 2013 Nissan Murano, 2013 Nissan Quest, 2013 Nissan Rogue, 2013 Toyota Camry, Toyota Prius, 2013 Volkswagen Bettle Goupe, 2013 Volkswagen GTI, 2013 Volvo C30, 2013 Volvo S60.”
As you can see, Proton has developed weak knees with years of mollycoddling. I agreed with Tun, Malaysia’s auto industry must be sustained, but to achieve world class standard and be competitive, the auto industry affirmative action or protective blanket must be removed.
Salam Tun
Salam Yg Bhg Tun,
To Mae,
You wrote as if that the current Malaysian standard of development now as still at during the 80’s. You still commented about a Proton Saga aeroback which was the earliest model which now no more in productions. Now Proton talks about Preve, Suprima or Proton Saga latest editions, with all the high standard features etc. Their aftersales services also getting better as they have to compete with others car producers. They had learned and learned and learned since the beginning to achieve better standards of products. Why do you want to dig out old stories here?
You also commented about the current standard of public transports. During the 80’s we had only buses and taxis as the main public transports. Those times the public transportations were limited. Now other than buses and taxis, we have the commuter trains up from Seremban, Klang, Tg Malim and also Bt Caves. We have the LRTs and also the monorails. Only that the number of populations are getting bigger. Coming up shall be the MRT which shall aligned from Sg Buloh to Kajang. No rakyats shall be punished. Other than that, most of the rakyats now are rich enough now to own cars for themselves and their families too. Except that the mostly Chinese prefer to own Honda or other imported foreign cars while the mostly Malays shall always resorted to locally made cars.
You also seem like to portray a bad prejudice towards ALL MINISTERS AND THEIR FAMILY MEMBERS. You said that they are filthy rich etc and always wanted to own foreign cars. Let them own whatever car they wanted to. I didn’t mind. As I said earlier that mostly Chinese prefer to own Honda or other imported foreign cars while that mostly Malays shall always resorted to locally made cars. And you want to talk about patriotic here.
You also said that your English was not very good because you are the product of the national schooling system. You felt very frustrated with the Government policies. This meant that your English was not very good because of the Government policies. My English is also not very good but I didn’t blame the Government policies and I still own cars and house.
I had a friend who migrated to a beautiful foreign country. He handed over his Malaysian citizenship. After several years living in that beautiful country, he decided to migrate back to Malaysia. The Government said “Whoa!! Good luck and have a nice day.”
Salam Tun
Salam Tun,I agreed with the points raise by you especially with regard o the finance and the economic of it.But the whole issue is,have got the infracture need to be in car industries.How many automobile engineer,tecnician,mould and dye people who will be the human capital that can transformed the technology to produce a car.We dont have such persons only the person who are not trained in car industry
Most of our components are imported in foreign countries and at the most semi finished good.
Yes we need to start some where but we are in the wrong foot from the beginning.Yes no doubt that Proton is a good project but must be properly and exhaustively implemented.There should be persistency.
No doubt the old management is good in their job but those who fill their shoes must also be good.The consumer complaint was numerous but proton tend to be huprit hubris.take it or leave it.as such our culture is not prepared for any criticism.So to be industrialised nature our Malaysian culture need to change.no “Cincai”In other countries products liability will be withdrawn and sued by the customer.
The project is seen as policy driven project and become the pet project of Tun.Nothing wrong with it but let it goes along way from being patronised and let the product attributes speaks for itself.
If you check at the local universities indeed very small number is producing automobile engineering graduate,be it mechatronics that will sustain the car work force requirement.Worse still they could not a get a job in car industry.There some misallignment here.
We always thaught money can buy technology,I am afraid we cannot buy its human partners and trained them. Look East policy that suppose to produce good Japanese working culture failed to produce the desired result.But we should revived Proto Project not as policy driven but business driven.Law of Darwin begin to operate or perhaps the blue ocean strategy might be applied
Tun,
Very positive and good comment. Proton should jump to manufacturing hybrid cars and green diesel cars We should slow down or slowly stop the manufacturing of petrol engine cars. I support you opinion.
Dear Tun,
Agreed with most of your points. But please Tun, please look at this from the consumer point of view. During the years when Proton was doing well, please note the quality of the cars manufactured by Proton, was at its worst. It takes 4 months to 6 months to get the car delivered. If you wanted a new car immediately you had to give duit kopi. I still remembered my Proton Saga aeroback came with a default. The glove compartment was not installed properly. I went back to Proton to complain and was told to wait for another 2 months to get it rectified. After 12 months, my window at the driver seat can longer wind up or down. The standard problem. And we pay through a nose for this sort of quality. I met a couple of accidents on my Proton before too. The Japanese car that hit me was still alright but my car rear was badly dented. Again, where did we go wrong?
I know you are a champion for our national cars. But as a consumer, it is just not worth paying so much and incurring so much problems with the car. Perhaps, ALL MINISTERS AND THEIR FAMILY MEMBERS, should be made compulsory to use the national car. Why are the ministers driving around in foreign made cars? Are they not patriotic? Are they not supportive of the national cars? Why are we rakyat being made the receiving end of this? While we have filthy rich politicians running around in foreign made cars?
I started work with a RM1800 salary. The only car I could afford was a highly inflated locally made car. I live in Shah Alam and work in KL. I had to put in extra hours that saw me going back at 9pm to 10pm on a regular basis. Public transport? Can we rely on our public transport? Please Tun, why are the Rakyat being punished with such expensive cars? We now have expensive cars and with the subsidies of the petrol being remove, we are being punished twice.
Sorry my English is not very good. I am a local graduate with not much exposure to English. I am a product of our national schooling system. I am feeling very frustrated with the Government policies.
I beg your pardon if I offended you Tun. You have done a lot of the country. But I just couldn’t agree with the national car policies. If we had a good public transportation system, maybe I could still agree with you. But right now, I feel majority of us are just fattening up the fat cats like NAZA and the ilks so they can live the high life while we continue to slog out and eked a living.
I wish you good health Tun. Please continue to write.