
2. Firstly car prices are high because taxes are high. But the detractors will say the taxes are high to protect Proton.
3. The protection for Proton is minimal. Most of the exemption from tax that Proton gets can also be obtained by foreign cars if they are prepared to have 90% local contents and are made locally which Proton has achieved.
4. But who cares whether the local contents are high or low. I think we should care because the local contents and local car production have created almost 250,000 high-income jobs directly and indirectly. Imported fully-built-up cars create jobs in their own countries. Do we want 250,000 people to lose their jobs so foreign workers will benefit!
5. Then there is the acquisition of technology and engineering knowhow. We were just assembling foreign cars at inflated cost due to very low deletion allowances in 1983 when Proton was launched. Today we have the capacity to design, build prototypes, test and produce our own cars. Acquiring this capacity carries some cost. But because of Proton’s needs we have produced highly qualified engineers and technicians. And we are not penalised by low deletion allowance for high cost parts.
6. Do we need this capacity? We have ambitions to become a developed country. Can a country of consumers of foreign products ever become a developed country? We see some very rich countries with no industrial capacity at all. They buy everything from foreign countries. Can we say they are developed? We need industrial capacities and sophistication if we aim to become a truly developed country. We need scientists, engineers, inventors, innovators, highly skilled workers etc. etc. We will not have them if we cannot create jobs for them. Proton create those jobs.