Tie-up with Suzuki can revive Proton, says Mustapa

FLASHBACK, 3 days ago: PROTON SIGNS MOU Strategic Partnership with Suzuki Japan
http://english.astroawani.com/business-news/proton-signs-mou-strategic-partnership-suzuki-japan-62618

KUALA LUMPUR: International Trade and Industry Minister Datuk Seri Mustapa Mohamed has expressed optimism Proton's partnership with Suzuki would revive the national car maker's fortunes.

"Suzuki has wide experience in India where it dominates the compact car market," he told reporters after his keynote address at the 19th Malaysian Banking Summit on Thursday.

Proton, which has never done research and development on compact cars, could use Suzuki's expertise, he said, adding under the National Automotive Policy announced in January last year, it would be good for Proton to identify strategic foreign partners.

On Monday, Proton signed a memorandum of understanding and a licence agreement with Suzuki to form a long-term strategic partnership, with the possibility of developing a new compact car model.
The agreement would give Proton access to Suzuki's models, platforms, powertrain and automotive technology. - Bernama

Citroen appoints Naza Euro distributor in Malaysia

(SOURCE: CLICK ME!)

KUALA LUMPUR (Jan 2, 2013): French carmaker, Citroen, has appointed Naza Euro Motors, a subsidiary of the Naza Group of Companies, as the distributor for the Citroen brand in Malaysia from Jan 1.

 Above: Citroen DS4, Below: Citroen DS5.

Above Citroen DS5 Rear 3D view.

"We are proud to represent a brand with such history and prestige. We believe there is sufficient demand for the brand's products in Malaysia and with the right strategy we are confident of realising Citroen's full potential in this market," Naza Group joint group executive chairman SM Nasarudin SM Nasimuddin said in statement here today.

He said Naza will launch a 3S (sales, service and spare parts) outlet in the Klang Valley by the end of February and has plans to launch new Citroen 3S centres in both the northern and southern regions in the coming months.

"We have also launched a dedicated call-centre for existing and new Citroen customers."

He also said Naza Euro Motor will be introducing several new Citroen models to the market, while an official website will be launched next month. – Bernama

RM30bil in car excise duty collected, says Najib

KUALA LUMPUR: Car excise duty collection from 2007 till last year totalled RM30.2 billion, Prime Minister Datuk Seri Najib Tun Razak told the Dewan Rakyat Monday.

A total of RM4.7 billion was collected in 2007, RM6.2 billion (2008), RM5.7 billion (2009), RM7.1 billion (2010) and RM6.5 billion last year, said Najib, who is also Finance Minister, in his written reply to Hee Loy Sian (DAP-Petaling Jaya Selatan) during question time.

Hee wanted to know the total car excise duty collected between 2007 and last year and whether the Finance Ministry intends to lower car excise duty with a view to reduce car prices for the people's benefit.

Najib said car prices are determined by several factors and not merely based on the tax rate.

Production, transportation, advertisement and distribution costs as well as carmakers and distributors profit are elements that ascertained car prices, Najib said.

"These elements are beyond government control. Hence, any proposal to lower car prices has to be studied thoroughly so that the outcome can really benefit the people besides helping to bolster competition in the local automotive sector in the long-term," he added.

 -Bernama

Driving tests using auto cars deferred

KUALA LUMPUR: Driving tests using automatic transmission vehicles that was to have been implemented last month has been delayed pending approval of the allocation to print the relevant books and material for driving schools with the introduction of the new driving education curriculum. 

Deputy Transport Minister Datuk Abdul Rahim Bakri, in disclosing this, said the estimated expenditure was RM5 million. 

"The new curriculum is ready and we expect the tests to be implemented within this year," he said.

The Government had announced that the switch to automatic transmission vehicles would be done in May to enable more Malaysians, especially the older generation and women, to obtain a valid driving licence. 

The new curriculum stresses on producing courteous and disciplined drivers, while the old curriculum had emphasised on dexterity and comprehension of traffic rules. 

- BERNAMA

Used car sales down 20%

PETALING JAYA: The sale of used cars in Malaysia dropped about 20% in January and February relative to the same months last year.

Federation of Motor and Credit Companies Association of Malaysia President Datuk Tony Khor attributed the decline mainly to Bank Negara Malaysia's tight lending conditions. 

Khor

Certain states are even experiencing (a drop) of 30%.

Both the new and used cars sales are down. 

"Other than the new guideline, other factors which affected sales included the on-going debt crisis in Europe which impacted consumer buying mode," he told reporters after the nationwide launch of the Interim Ownership Transfer System by Transport Minister Datuk Seri Kong Cho Ha here today.

The new system will enable a used-car dealer to take full responsibility for a car until it is sold to another party. 

Khor said the total used vehicle sales in January and February rose to 192,000 units versus 187,000 and 174,000 recorded in the same period last year and in 2010, respectively. 

"However, the total vehicle sales does not represent the used car business. This is because total sales would include motorcycles, taxis and commercial vehicles. 

"Usually, cars will make up some 40% of the total sales. However, we have no proper system to monitor the sales and purchase of a used vehicle except for data provided by the Road Transport Department, thus we do not have an exact figure," he said.

Khor added every year, between 450,000 and 500,000 used cars are sold in Malaysia.

He said there were about 5,000 used car dealers nationwide and 60 per cent of them were registered with the association. 
 -Bernama

Nadzmi exits Proton (deserved it)

KUALA LUMPUR: Datuk Seri Mohd Nadzmi Mohd Salleh has resigned as Proton chairman and director with immediate effect.

In a filing to Bursa Malaysia on Friday, the national auto maker said his resignation was part of a term stipulated in the sales and purchase agreement (SSPA) between Khazanah Nasional Bhd and DRB-Hicom Bhd. 

Nadzmi

"We wish to highlight that the resignation of Nadzmi as the chairman of the board of Proton and all other appointments by virtue of his position as director, is part of the terms of the SSPA," Proton said.

Nadzmi, 57, nominated by Khazanah, was appointed Proton chairman on Jan 1, 2009 and was also chairman of the boards of various subsidiaries within the Proton group of companies.

He previously served the national car company as its managing director between 1993 and 1996.
 -Bernama


MY OPINION:


Rust Blisters issues "built in" in Proton from 1993 to 1996.  The culprit: SALTY glue used in Welding spots.  Apparently, this issue started since 1988 and NOTHING's Been done to solve this issue during his tenure.  In fact, ALL PROTONS made from 1993-1994 have THIS RUST ISSUE.  This issue's SOLVED Finally in 1999 as Proton make from 1999 onwards reportedly have NO RUST ISSUES.  In short, this is a CLOSE ONE EYE MD which take ZERO Action to address the RUST Issue.  That's why I said this Chairman deserved the Boot.  

Year of the Dragon poised to be an exciting year

KUALA LUMPUR: The local car industry is set to shift into high gear in 2012 despite having gone through a roller-coaster ride this year.


Both the national and non-national car companies have announced exciting model launches, facility and network expansion as well as upgrading programmes.


Some have received enquiries and bookings ahead ofthe Chinese New Year on Jan 23-24, 2012.
Proton Holdings Bhd will launch the new global car, P3-21A, in the first quarter of 2012 and two new variants of multi-purpose vehicle Exora by the second week of January.


UMW Toyota Motor Sdn Bhd plans to unveil a few models for both Toyota and Lexus, while Naza Kia will accept bookings for its new Optima K5 in January.


Naza Kia will set up its second 3S (sales, service and spare parts) outlet -- Kia Red Cube -- and upgrade 27 existing outlets to incorporate its new identity.


Perusahaan Otomobil Kedua (Perodua) will ink a collaborative agreement with Proton on certain aspects early next year.  Perodua has revealed that both parties will make the announcement on the agreement either this year or next year.


On Khazanah Nasional Bhd plans to sell its stake in Proton to DRB-HICOM Bhd, most analysts reserved comments to await Khazanah's formal announcement.

Other factors that industry players need to keep close watch included the revision to the National Automotive Policy and exchange rates for the US dollar and yen.

The younger Malaysian population, which usually forms a large pool of first-time buyers, will propel the car industry towards achieving higher overall total industry volume (TIV).


Car analysts said effective business plans to tap growth opportunities, including strategies to cope with economic reality in view of Europe's debt woes and tight credit, are crucial.
Industry players and analysts expect TIV next year to record positive growth.

OSK Research Sdn Bhd said next year's TIV is expected to grow by 1.1 per cent on the back of a forecast gross domestic product growth of 5.2 per cent.
RHB Research Institute forecasts TIV to remain relatively flat at 607,000 units in 2012 versus 2011, which is estimated at 604,000 units.
MIDF Amanah Investment Bank Bhd predicts the TIV to grow by 0.5 per cent to 611,140 units from 608,100 units estimated this year.


Naza Kia expects sales volume to remain flat next year in view of the coming general elections and said that "maintaining sales at the current level is good enough for next year."


In 2010, the TIV hit a record 605,155 units, an increase of 12.7 per cent compared with 2009's 536,905 units.


As for this year, the Malaysian Automotive Association (MAA) forecasts industry sales to hit 608,000 units.
The market saw a momentum driven by stronger purchasing power and higher demand from customers this year but faced several challenges like earthquake and tsunami that hit Japan in March and the flooding in Ayutthaya, Thailand in the third quarter of the year.


As a result, some delays were seen in the launch of certain models and delivery of spare parts for companies like UMW Toyota Motor and Honda.


With 2011 turning out to be the year best forgotten by the car industry, most analysts agree that the parts production and delivery are nearly back to normal.


Total vehicle sales rose by 8.6 per cent to 48,702 units in November, from the 44,845 units sold in the same month last year.


According to MAA said sales volume for December is expected to moderate further, due to the preference of customers to wait and take delivery of 2012 production year stocks.
-Bernama

Touchscreen devices in cars linked to higher accident risks

Touchscreen devices in cars linked to higher accident risks

CANBERRA: Other devices are being singled out alongside the cellphone as being linked to distracted driving accidents.
This time, they are portable touchscreen-based devices in cars, whether they be mp3 players, smartphones, GPS or PDAs.

Above: My dad's MYVI 1.5 SE with "High risk" touch screen Multimedia navigation player.

A research team from the Monash University Accident Research Centre of Australia, led by author Kristie Young, analysed the impact of using touchscreen devices on driving skills.
Young and her team assessed the ability of 37 people to stay in their lane and stay a safe distance behind another vehicle while searching for songs in a list of tunes on an iPod Touch device by using computer driving simulations.
"The devices often have really small text or their menu structures are quite complex, and drivers have to spend a lot of time to find a particular item," said Young.


"When drivers' eyes are off the road, they miss the visual cues from the road environment to make micro-corrections to their steering to stay on the correct path and also to maintain a safe distance from the lead vehicle," China's Xinhua news agency quoted her as saying in a statement.
The main problem with portable devices being brought into cars is that they are not designed primarily for use by drivers, said Young, adding that these devices use scrolling mechanisms and finger flicks to locate songs on a touchscreen.
Without any tactile feedback, drivers need to look at the device to keep track of where they are up to in the task, and the short glance back to the roadway might not be sufficient.


"The heading and following errors build up and become more increased over time because they aren't making those adjustments that they need to stay on the correct path."
The researchers found that the drivers not only have their eyes off the road for a significantly much more time, they were also more likely to veer off the center of their lane, and misjudge the distance to the car in front.

To compensate for the distraction, drivers tended to slow down and take more frequent glances at the device.
However, Young pointed out that such action is not a safe strategy.
According to the research, over 40 percent of drivers own a portable music player will use it while driving with half of them being young drivers.
Young said previous experience showed that younger drivers are more likely to engage in distracting activities.
The impact of that distracting activity is likely to be greater on driver performance because they lack the level of driver experience and skill to handle those increased risks.
It is reported that better integration of touchscreen devices into car systems and deploying system lock outs, where only a limited number of functions are allowed while the car is moving could help in reducing the risk.
Young suggested that "enter your destination details [on your GPS] before driving off, load up playlists before driving would help a lot."
The finding was published in the journal Applied Ergonomics.

-Bernama

Proton eyes world market in pact with Hawtai

Sunday, October 23, 2011


Proton eyes world market in pact with Hawtai

NANNING (China): Proton is not only planning to expand its presence in China through Hawtai Motor Group Ltd but will be using the partnership as a springboard to the world market.


It's not your typical joint venture. It's a cooperation that covers many areas," said Proton chairman Datuk Seri Mohd Nadzmi Mohd Salleh.

"We are looking at the low-cost base of China. We should capitalise on that.

In Malaysia, it's difficult for us to achieve economies of scale because of our low volume."
proton.jpg
Mohd Nadzmi (right) and Syed Zainal Abidin.


"Going to China, we can leverage on its low-cost base, especially on the component industry, which is important because 70% to 75% of the cost of a car comes from its components," he said.

Proton exchanged a memorandum of understanding (MoU) with Hawtai Motor at a roundtable dialogue between Malaysian Prime Minister Datuk Seri Najib Tun Razak and Chinese CEOs here on Friday.

Speaking to Malaysian journalists covering the 8th China-Asean Expo here, Mohd Nadzmi said the MoU would result in an agreement in about 90 days and during the period both parties would study how the cooperation would take place.

"We are talking about product collaboration. Immediately, our (Proton) Saga is ready to come to China, followed by the Exora and also our new model that we will make available for this collaboration with Hawtai," he said.

Proton managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said both parties were still discussing whether to use Proton brand or Hawtai brand in selling cars in China.

"What we look forward to is one day to get our cars produced in China. From China, we can export to other left-hand-drive markets, for example, the Middle East.

"The production cost will be much more competitive. This is one of the big objectives we have.

"We can't rely on Malaysia to export left-hand-drive vehicles. We can use China as a base and because they have a big volume here and our partner will provide us with the facility, knowledge and infrastructure," he said.

Syed Zainal Abidin said Proton products in the C and B segments would complement Hawtai Motor's 4X4 vehicles and D-segment sedans.

Hawtai also has a major plant producing diesel engines for the domestic and export markets.

"So we can also use their diesel technology in our cars to exploit the diesel market, for example, in India," said Syed Zainal.

So, the discussions are not only about products but also on technology transfer."

Hawtai Motor has an annual production capacity of 200,000 vehicles, 300,000 engines and 300,000 auto transmissions.

As for the China market, Syed Zainal said Proton was targeting sales of 50,000 to 100,000 per year and for every unit, Proton would receive revenue whether in terms of components or sales or royalties for the technology transferred.

He also said Proton would not be sourcing parts from China for its Malaysian operations.

"Our priority to support our local vendors."

On Youngman Automobile Group,Syed Zainal Abidin said: "Our relationship with Hawtai is complementing our existing relationship with Youngman. We will continue to support Youngman based on our current business arrangement,"

"Youngman is a straight forward licensing agreement. Hawtai is a different arrangement altogether ... different platform, so there is no conflict of relationship with Youngman," he added.
-Bernama

Car production bases to remain in Thailand despite floods

 

(picture source AFP)

BANGKOK: Despite the floods, car makers will not shift their production bases from Thailand but will only suspend production due to the shortage of auto parts, Thai News Agency (TNA) reported.


Piangjai Kaewsuwan, president of the Thai Automotive Industry Association, said on Thursday although industrial estates in Ayutthaya province were flooded and automobile and auto parts manufacturers affected, the floods should not prompt car-making companies to move their production bases from Thailand because it was a temporary natural disaster.

Piangjai, however, said she expected the supply of auto parts to drop by 10-20 percent.

She added that the Thai automotive industry should take at least three months to recover and that the actual automobile production should reach at least 1.5 million units this year instead of the annual production target of 1.8 million vehicles.

Toyota, Ford, Nissan and Isuzu companies have so far suspended their production for two days to assess the situation, saying they may source auto parts from China and India instead.

Meanwhile, Anuparp Tadpitakkul, state affairs director of Ford Operations (Thailand) Co, said the company suspended its production for two days to examine its stocks of parts as seven plants were affected.

However, he said he did not think the floods will have an impact on the long-term investment of the company in Thailand.

Some 10 Malaysian companies have been found affected by the severe flooding.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said most of them were involved in the automotive and electrical and electronic sectors.

"Those who are affected operate in the flooded Ban Wa, Rojana and Navanakorn industrial parks," he told reporters after the ministry's monthly assembly in Kuala Lumpur today.

The Thai News Agency reported Deputy Prime Minister Kittirat Na-Ranong as saying that the ongoing flood crisis could reduce the country's GDP growth by at least 0.6-0.9 per cent due to expanding damage to its farm and industrial sectors.

 -Bernama(Photo by AFP)

Budget 2012 Highlights

October 07, 2011 19:36 PM

2012 Budget Highlights

(Highlighted in BLUE is Automotive industry related issues)

(Highlights in RED is MY OPINION!)

KUALA LUMPUR: Highlights of Budget 2012 tabled by Prime Minister Datuk Seri Najib Tun Razak in Parliament Friday.
- Last year our FDI growth was the strongest in Asia and in the first 6 months of this year have already reached RM21.2bil
- In 2012, private investment is forecast to climb 15.9%, supported by foreign and domestic investment
- GDP in the first 6 months of 2011 was 4.4%, driven by strong domestic consumption
- In 2011, the economy is forecast to grow by 5-5.5%
- Private and public investment are forecast to increase by 15.9% and 7%, supported by foreign investment, the ETP and 10MP
- In 2012, the service sector is expected to grow 6.5%, the construction sector 7% and GDP is forecast to be between 5 and 6%
- Budget 2012 allocates RM232.8bil for Government plans, including RM181.6bil for management and RM51.2bil for development (181.6billion for Management!!!)
- RM29.8bil has been allocated for investment in infrastructure, industrial and rural development
- RM13.6bil has been allocated for the social sector, including education and training, welfare, housing and community development
- Total revenue for 2012 is forecast to increase 1.9% to RM186.9bil and the deficit to decrease to 4.7% of GDP from 5.4% in 2011
- The theme for Budget 2012 is “National Transformation Policy: Welfare for the Rakyat, Well-Being of the Nation” (We'll see)
- We will focus on accelerating investment and further liberalise 17 services sub-sectors, in places enabling 100% foreign equity.

- RP2 will be implemented in 2012, and it will be allocated RM98.4bil, to be split evenly between 2012 & 2013

- RP2 main projects will include the East Coast Highway from Jabor to Terengganu and road upgrades from Kota Marudu to Ranau
- RM18bil of the RM20bil PPP Facilitation Fund will be used for high impact projects, with RM2 billion for bumiputera entrepreneurs
- In 2012, the Government will allocate RM978mil to accelerate the development in five regional corridors
- The Treasury Management Centre will be established and offer incentives to develop M'sia as a competitive financial centre

- We will develop the Kuala Lumpur International Financial District, with incentives including income tax exemptions for firms
- Income tax exemptions for non-ringgit sukuk issuance and transactions will be extended for another 3 years
- To promote the development of Exchange Traded Funds products I-VCAP will provide RM200mil for Shariah-compliant ETFs
- Felda GVH will be listed on Bursa Malaysia by mid-2012 to raise funds for the company to become a global conglomerate. Felda settlers are expected to receive a windfall, and the amount will be announced before listing
- A RM2bil shariah-compliant SME Financing Fund managed by selected Islamic banks will be established in 2012
- A RM100mil SME Revitalisation Fund offering loans up to a maximum of RM1mil for entrepreneurs will be available from Jan 2012

- Full exemption of import duty and excise duty on hybrid cars and electric cars will continue to be given until 2013

- To promote tourism, the Langkawi Five Year Tourism Development Master Plan will be launched with an allocation of RM420mil

- The real property gains tax will be reviewed so it doesn't jeopardise the ability of low- and middle-income groups to buy homes

- The Malaysia Healthcare Travel Council will be privatised to promote and develop Malaysia as a healthcare destination
- Budget focuses on developing human capital, creativity and innovation and 2012 will be the National Innovation Movement year
- The Govt has allocated RM100mil promote innovation including the 1Malaysia Award (C1PTA) for innovative student inventions
- To enable SMEs to commercialise research products a Commercialisation Innovation Fund totalling RM500mil will be established
- RM50.2bil will be allocated to the education sector so that it can continue to develop talented, creative and innovative people (WOW! RM50.2billion!!!)
- RM1bil will be provided through a special fund for the construction, improvement and maintenance of schools
- We will abolish payments for primary and secondary education, making these free for the first time in our history
- Private schools registered with the Education Ministry will be given incentives including an Investment Tax Allowance
- The Govt will give tax exemption for contributions to educational institutions and all places of worship
- To encourage private sector human capital development incentives including a double deduction on scholarships will be offered
- Budget 2012 introduces a Rural Transformation Programme, so that rural areas can attract private investment and create employment

- RM5bil to develop rural infrastructure, including RM1.8bil to the Rural Road Programme & Village-Link Road Project

- RM500mil to expand the programme to supply clean water to the rural community in Sabah
- RM400mil to upgrade the water supply infrastructure in selected Felda areas
- To provide greater access to bank services for the rural population, Bank Simpanan Nasional will appoint agents in rural areas
- RM90mil for the Orang Asli for basic necessities, including the expansion of the clean water supply project. For the Orang Asli affected by the landslides at Sungai Ruil, RM20mil is provided for their relocation to new homes
- 600,000 Govt pensioners will benefit from an additional annual pension increment of 2%
- Civil servants get pay rise between RM80 to RM320
- Govt will extend the compulsory retirement age from 58 to 60 years old to optimise civil servants' contribution
- Civil servants will be offered tuition fee assistance for part-time studies, including 5,000 masters and 500 doctoral scholarships
- A special programme will be introduced for 175,000 army personnel who are not eligible for pensions
- RM3,000 will be given to ex-members of the special constable and auxiliary police as well as widows and widowers
- The Govt is mindful of the plight of the rakyat due to rising food prices and will take measures to address this
- The National Agro-Food Policy 2011-2020 will be launched and RM1.1bil allocated for the development of the agriculture sector
- In the spirit of “People First,” all subsidies, incentives and assistance totalling RM33.2bil will be continued
- 500,000 will benefit from KAR1SMA, which provides assistance to poor senior citizens and children and disabled people
- My First Home Scheme will be expanded to increase the limit of house prices from a maximum of RM220,000 to RM400,000
- Govt will identify areas in the vicinity of MRT, LRT and other public transport to be developed by PR1MA
- Govt will continue to implement the Program Perumahan Rakyat by building 75,000 units of affordable houses
- Govt will establish the Special Housing Fund for Fishermen to build and refurbish houses
- Healthcare will be allocated RM15bil operating expenditure and RM1.8bil development expenditure (Another potential leakage)
- Hospitals will be upgraded and constructed as well 81 rural health clinics upgraded and 50 new 1Malaysia clinics launched
- Hospital Kuala Lumpur - the oldest in Malaysia - will be upgraded to be the country's premier hospital
- Skim Amanah Rakyat (SARA) 1Malaysia will benefit 100,000 households with income below RM3,000 per month

- To assist taxi owners facing increased operating costs, measures will be introduced including tax exemptions on taxi purchases

- The National Legal Aid Foundation will ensure that every individual who is charged in court will be given free legal aid
- To assist the homeless, the Govt established a social assistance centre known as Anjung Singgah
- A training allocation of RM10mil will be provided for women to develop leadership and managerial skills
- To prevent cervical cancer, the Government will provide free Human Papilloma Virus immunisation nationwide
- MyCreative Venture Capital with an initial fund of RM200mil to be established
- RM15mil will be allocated to build 150 futsal courts to achieve the “One Court for One Mukim” target (This is insane.  RM100,000 per futsal court.  Wonder which Crony get this project?)
- To ensure the welfare of retirees measures including a tax relief on Private Retirement Schemes contributions are introduced
- Senior citizens aged 60 years & above will be exempted from outpatient registration fees in Govt hospitals & health clinics
- One-off assistance of RM500 to households with a monthly income of RM3,000 and below will be provided
- For those in private sector earning RM5000 and below, employers' EPF contribution will increase from 12% to 13%
- Book voucher worth RM200 will be given to Malaysian students in all private and public institutions of higher learning
- Civil servants will be given an additional bonus of half-month salary and pensioners RM500.

END OF SOURCE... 

For more info about this "BIASED" Budget:  Surf to:

2012 Budget Business Highlights:
http://www.bernama.com/bernama/v5/newsbusiness.php?id=618522

Why BIASED?  Here's my highlight:

* Tax deduction on expenses incurred for sukuk wakala to be given for a 3-year period from 2012. (WHAT IS SUKUK WAKALA? Islamic Bonds - thanks Google)

* Income tax exemption for non-ringgit sukuk issuance and transaction extended for another 3 years until 2014.

* Valuecap Sdn Bhd to provide RM200 million as seed monies for syariah-compliant Exchange Traded Funds

* Felda Global Ventures Holding to be listed on Bursa Malaysia by mid-2012 to raise funds and emerge as a global conglomerate
* A syariah-compliant SME Financing Fund totalling RM2 billion to be managed by selected Islamic banks by 2012

* Syariah-compliant Commercialisation Innovation Fund totalling RM500 million to be set up

* RM200 million allocated for the development of Bumiputera entrepreneurs and contractors through the Ministry of Rural and Regional Development

* Government proposes allocation for TEKUN to be increased to RM300 million

* Amanah Ikhtiar Malaysia will provide RM2.1 billion for micro financing to entrepreneurs, particularly for women. From this, RM100 million will be for Malaysian Indian entrepreneurs and another RM100 million for Chinese entrepreneurs (See.  >90% allocated to Bumis. How Unfair)

THAT"S ALL FOLKS! Thanks for having the time and patience to read this blog entry.

Cuba lifts 50-year ban on buying and selling cars

HAVANA: Cuba has authorised auto sales among individuals easing a 50-year-old ban that has helped make the island a living museum of vintage cars.

Until now, Cubans have only been permitted to sell each other vehicles built before the country's 1959 revolution, which has given long life to the US chrome and fin-tail antiques that swarmed pre-revolutionary Havana.

The new regulations, published in the Official Gazette, had been expected as part of a series of reforms being undertaken by President Raul Castro to ease state controls on the economy and encourage some forms of small-scale private enterprise.

The regulations provide for "the transfer of ownership of vehicles for purchase-sale or donation among Cubans living on the island or foreigners who are residents of Cuba."

Ordinary Cubans will still be prevented from buying new cars, which are restricted under the new rules to buyers with dollars or convertible pesos engaged in "work on assignment by the state or in its interest".

But tens of thousands of Cubans who were allowed to buy Soviet-made vehicles through their workplace before 1990 will now be able to sell them legally.

Also on the market will be newer imports that the government has allowed artists, athletes and doctors working in overseas missions in places like Venezuela to bring home with them.

Foreigners living in Cuba will be allowed to buy or import up to two vehicles under the new rules.

Cubans who emigrate - some 38,000 a year - will now be allowed to sell their vehicles or transfer ownership of them to family members.

For retired musician Lazaro Gonzalez, the new measures provide the long-awaited opportunity for him to buy a Russian Lada from his sister, who works in Chile.

"This (transaction) is something normal, which never should have been banned," Gonzalez said. "It's another one of these absurd prohibitions that Raul Castro has removed since coming to power."

Allowing car purchases and sales is seen as among the most important of some 300 reforms adopted in April by the Communist Party Congress, which aimed at keeping the centrally planned system from collapse but stopped short of embracing a market-led economy.

Other measures expected to shake up the lives of ordinary Cubans included introducing the right to buy or sell homes or receive a bank loan.

Most Cubans own their homes and do not pay taxes but have only been allowed to exchange, not sell them until now. Details on the home sales measure should be published before the end of the year, sources said. – Bernama-NNN-Mercopress

Govt reviewing National Automotive Policy

Friday, September 23, 2011

Govt reviewing National Automotive Policy
Friday, September 23, 2011

GURUN: The Government is reviewing the National Automotive Policy (NAP) to meet the needs of the customers and industry players, locally and overseas.

Deputy Minister of International Trade and Industry Datuk Mukhriz Mahathir said the Government was talking with industry players to obtain feedback on how to create a better environment to boost the growth of the industry.

"The industry is very important and it has recorded high earnings for the country.

"I'm confident that Budget 2012 will give more emphasis to the sector considering that it is contributing to the economic growth apart from creating high-income jobs for Malaysians."

Mukhriz said this to reporters after Naza Automotive Manufacturing's celebration of the production of its 150,000th unit here Thursday.

He said the local car sector has grown tremendously compared to the neighbouring countries in which Malaysia is not only an assembler but also a manufacturer.
 -Bernama

KL roads almost deserted

KL roads almost deserted

KUALA LUMPUR: The city is gradually becoming deserted as more people leave for their hometowns to celebrate Aidilfitri, which is expected to fall tomorrow.

It was a very different scene of smooth traffic compared to the snarled conditions of the past two days.

The Sungai Besi Toll, North-South Highway and Jalan Duta Toll saw fewer vehicles today.

A private sector worker, Liyana Yusoff, 26, said traffic was smoother this year compared to previous years.

"I am on the way to Melaka from Bandar Tun Razak and find it is not as bad as it was during the weekend," she said.

Another worker, Maisara Ahmad, 42, said she chose to go back to her hometown in Taiping today as there was less traffic and she was confident it would be a smoother ride on the highways.

Civil servant Mazlan Abdul Hamid, 33, said he checked the PLUS Expressways Bhd schedule last night before leaving the house earlier this afternoon.

"My number plate ends with an odd number and that means I can travel this afternoon," he said.

Meanwhile, a scan of the Pudu Sentral area saw fewer people at ticket counters.

A Kesatuan Ekspres ticket seller who identified herself as Sharifah, 41, said bus ticket sales were lower this year and there was only one bus to the north tomorrow while none were scheduled to the east coast.

It was a time of joy for student Nurul Syazwa Azmi, 23, who said last-minute travelling was fun because she would have a smooth journey and reach her family home in Sungai Petani, Kedah, just in time for the start of the festivities.

-Bernama

Auto players unhappy with Hire-Purchase Act

Auto players unhappy with Amended Hire-purchase Act

Auto dealers are doubtful whether the targeted 2.1 per cent increase in total vehicles sales to 618,000 units this year can be achieved, no thanks to the amended Hire-Purchase Act 1967, which although aimed at protecting the rights of consumers, was dampening bookings.

Several auto companies have complained that their daily bookings mainly for cars had declined by an average of 20-30 per cent since the amended Act came into effect on June 15.

Local automotive players, while appreciating the amended Act which upheld the rights and interest of consumers, are already feeling the pinch of flat sales which they expect will continue for the next few months due to new requirements under the Act.

At least three auto industry players Proton, UMW Toyota and Edaran Tan Chong, with a combined market share exceeding 50 per cent of the total industry volume (TIV), said they might revise the company's initial sales targets.

The amended Act, which came into effect a month ago, has resulted in cash flow problems for dealers, as the maximum booking fee of only one per cent of the total selling price of the car imposed on buyers, was too small compared with the previous requirement of 10 per cent.

To make matters worst, if the deal falls through, the buyer gets back 90 per cent of the booking fee, leaving very little for the dealer.

The Executive Director of Edaran Tan Chong Motor Sdn Bhd Datuk Ang Bon Beng said customers can change their mind to purchase a car even at the eleventh hour in view of the low booking fee.

In other words, there was no commitment to the deal, he said, adding that the burden of this uncommitted relationship has to be borne by car dealers or the principals of automotive companies.

Besides, customers only need to sign the purchase agreement when the car is produced and shown to the customer and if the customer opts not to buy the car, dealers again tend to lose out.

If the cars are not sold, then it causes disruptions to the supply chain as orders were already made for the cars.

As a result, car dealers were now recording a 20-30 per cent decline in bookings per day owing to the longer process required to get a car under the amended Act as buyers now have to deal directly with the bank which means increased documentation and processes.

Previously, a dealer would be able to handle the entire documentation and buying process of a vehicle. "We (Tan Chong) used to record about 200 bookings per day, but now it has dwindled to about 100 bookings only," Ang said.

Ismet

Moreover, due to the low booking fee, car dealers could not distinguish between genuine and phantom buyers, as many opted to switch to other cars at the last minute.

Dealers also complained a buyer could place phantom bookings at several different car dealerships without paying booking fees, resulting in a waste of loan application resources and inefficiencies for banks and car dealers.

President of UMW Toyota Motor Sdn Bhd, Ismet Suki, while concurring that the intention of the government to ensure consumers were not cheated and misled was noble and accepted by all industry players, however, felt there were weaknesses.

"The act is flipped, from the automotive perspective, as many segments are disrupted, namely manufacturing, production and the (vehicle) ordering system," he said.

Ismet said the longer documentation and paperwork process between banks, car dealers and customers have actually slowed down the delivery system as the process of finalising a vehicle purchase agreement took an extra 3-4 days.

The manufacturer and marketer of Toyota marques as well as the distributor of Lexus-brand vehicles also said that the main issue now was not selling the cars, but taking the risk of producing cars according to the order bank, without knowing whether the orders were genuine or would be met.

Proton Edar Sdn Bhd General Manager for Marketing Sidik Abdul Hamid said as far as the national car maker was concerned, the reaction to the amended Act from consumers was positive.

However, he said, the company was looking at revising downwards Proton's initial sales target of 173,000 cars as the number one automotive player has registered a 30 per cent drop in bookings since June 15.

Against such problems faced by car sellers, the government had last month promised to resolve their grouses over the implementation of the Act.

 -Bernama 

Related: 

Government open to reviewing act

Public response to new Myvi overwhelming, says Perodua

Bernama: Monday, June 27, 2011 

AYER KEROH: Perodua says the public response to its new Myvi has been "overwhelming", with 12,000 bookings received.

"As of June 24, we have received bookings for about 12,000 MyVi units and we expect, by end-July, for about 2,000-3,000 new Myvi cars to be on road," said Perodua managing director Datuk Aminar Rashid Salleh.

He said the company was maintaining its sales target at 195,000 units and the new MyVi would account for 50 per cent of that sales.

On another matter, Aminar said Perodua will open its first sales, service and spare-parts (3S) centre in Malacca next year.

He said the company was finalising a land agreement with the state to locate the centre in Ayer Keroh.

"Previously, the state offered us a piece of land at Autocity, Malacca, but since the place is still new, we don't think it suits our interest.

"Therefore, we are selecting a place somewhere nearby "Taman Buaya", Ayer Keroh, as a major hypermarket is expected to be built here. We believe it can attract a crowd," he told a media briefing on the sidelines of the "Perodua Eco-Challenge 2011", here on Saturday.

He, however, declined to reveal the cost of the 3S centre expected to start operations by the end of next year.

To date, Perodua operates 16 3S centres nationwide.

 -Bernama 

Foreign vehicles to be barred from filling up on RON95 petrol and NGV

 Tuesday, June 14, 2011 9:05 PM

KUALA LUMPUR: RON95 petrol and NGV fuel will be banned from being sold to owners of foreign-registered vehicles from tomorrow, the Ministry of Domestic Trade, Cooperatives and Consumerism announced Tuesday.

RON95 petrol would however be allowed to be sold to those having foreign-registered motorcycles as an exception.

Following the move, the requirement to produce Mykad by Malaysians using foreign-registered vehicles for buying RON95 petrol at all petrol stations throughout the country had been withdrawn, the ministry said in a statement here.

On Aug 1 last year, a directive to ban sales of RON95 petrol to foreign-registered vehicles nationwide was imposed with the exception given to Malaysians who could produce the Mykad for verification.

The ministry in the statement clarified that the government had received feedback of leakages due to abuse of of the Mykad for purchasing RON95 petrol.

According to the ministry, petrol station operators at border areas had also complained of difficulties in controlling and ensuring the directive on the petrol ban was fully complied with.

"On this issue, the government is of the view that the ban on all foreign-registered vehicles from buying RON95 petrol and the withdrawal of the condition that allowed purchase of RON95 petrol on producing the Mykad throughout the country with the exception of motorcycles, is reasonable," the ministry said.

The ministry clarified that the ban also covered NGV fuel following the discovery that 311,000 litres of NGV fuel were sold to foreign registered vehicles each year.

"At the rate of the current subsidy, the NGV fuel subsidy enjoyed by foreigners amounted to RM360,000 each year," the statement added.
 -Bernama

Govt suspends plans to scrap old cars

 KUALA LUMPUR: The government does not plan to dispose of all vehicles over 15 years old because it does not yet have a suitable mechanism for doing so, Deputy Transport Minister Jelaing Mersat said.

The government would also have to get the views of non-governmental organisations and the public before disposal of all old vehicles could be enforced, he told the Dewan Negara.

Although use of these old vehicles was allowed, the road transport department and police were ensuring that they were road-worthy, he said when winding the debate on the motion to thank Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin for his royal address on Tuesday.


 -Bernama

Six men arrested, stolen car and lorry parts seized

KUALA LUMPUR: Police have crippled a syndicate specialising in stealing cars, stripping their parts, storing and reselling them as spare parts in the Klang valley, Malacca and Johor, after arresting six men in two separate operations.

Police also recovered 1,603 components and engines worth a staggering RM5mil during the raid while seven vehicles were also detained.

Bukit Aman CID Director Datuk Seri Mohd Bakri Mohd Zinin said during the first raid on April 8, two men in their 30s were arrested after inspecting three stores in Batu Berendam and Durian Tunggal, Malacca.

"Six cars reported stolen in the Klang valley and a lorry reported stolen in Johor were also seized," he told reporters here Monday.

He said the second raid was carried out a day later in Johor and involved a store, two shops selling spare parts and two houses while four men in their 30s were detained.

Mohd Bakri said with the arrests, police would be able to solve 250 car theft cases involving Waja, Wira, Iswara and Hicom lorries.

He said the modus operandi of the syndicate was to steal cars or lorries and hide them at stores before stripping them of their parts before selling the parts at a lower price.
 -Bernama

Monday, April 11, 2011

GM Korea says goodbye to Daewoo, hello to Chevrolet

GM Korea says goodbye to Daewoo, hello to Chevrolet


SEOUL: GM Korea Co, the South Korean unit of US automaker General Motors Co, will officially launch the Chevrolet brand in South Korea this week, saying goodbye to Daewoo, a name that has endured in South Korea for the past 28 years, Yonhap News Agency reported the company as saying Monday.



The name of the company will officially be changed to GM Korea from GM Daewoo also from Tuesday, it added.


"The change of the company name is an evolution from a company that does export sales and also domestic sales. We are a global company that works in Korea. This is a revolutionary pivot for us and an imperative decision," GM Korea president and CEO Mike Arcamone had said, introducing the new company name and the Chevrolet brand for the first time in January.

GM Korea has already introduced three Chevrolet vehicles in South Korea - the multi-purpose vehicle Orlando, small passenger car Aveo and Chevrolet's iconic sports car the Camaro - with their deliveries scheduled to begin late next month.

The company plans to introduce an additional five Chevrolet vehicles here this year under what Arcamone has called an "unprecedentedly aggressive launch programme" designed to boost the company's domestic sales.

"This is a good change. It is in the best interest of customers, our company, its employees, shareholders, dealers, suppliers and indeed the people of Korea," he had said.

All new makeovers of former GM Daewoo cars will also come with the Chevrolet brand.
The only immediate concern for GM Korea and its officials is that many local customers, unfamiliar with the Chevrolet brand, may mistake their new vehicles as products by an entirely different or smaller manufacturer as, in South Korea, the name of a vehicle brand is almost without fail the name of its maker, a GM Korea official noted.


To prevent such confusion, the company is planning a massive launch event here Tuesday when it will also announce new marketing strategies that have "never been seen before" in South Korea for new Chevrolet vehicles, the official said.


GM Korea is struggling to increase its market share in South Korea to a double-digit number as it failed again to do so in 2010, though only by 0.5 percentage point.


The company currently is the third-largest of five automakers in South Korea, where over 80 per cent of the market is controlled by top automaker Hyundai Motor Co and its affiliate Kia Motors Corp.

-Bernama