Translate This Page

Tuesday, January 21, 2014

NAP 2014



Following are the highlights of the National Automotive Policy (NAP) 2014 that was unveiled by the Trade and Industry Minister, Datuk Seri Mustapa Mohamed. But if you are anticipating for cheaper car prices, you are wrong. In fact, the NAP 2014 raises a lot of questions and very few answers. It appears that the NAP 2014 isn't quite ready but probably due to the pressing concerns by the big players to know the upcoming policy, the announcement was made....

Here are the HIGHLIGHTS....

OBJECTIVES:

* to promote competitive and sustainable domestic automotive industry including the national automotive companies.
 
* to transform Malaysia into a regional automotive hub in energy-efficient vehicles (EEV)
 
* to promote higher value-added activities
 
* to bolster exports of vehicles and components
 
* to encourage participation of Bumiputera companies in total value chain of the domestic automotive industry
 
* to safeguard consumers' interest by offering safer and better quality products at competitive prices.
 
* Overall, the NAP 2014 provides a total financial package of about RM2 billion and measures and implementation plans to realise the NAP 2014
 
* The NAP 2014 targets at least 200,000 units of cars to be exported while exports of components will reach a minimum value of RM10 billion in 2020
 
* The government is open to possibilities to reduce excise duties gradually when the fiscal situation permits.
 
* On Approved Permits (APs), the government has decided an indepth study to be undertaken to asses the impact of the termination of Bumiputera participation in the auto industry.
 
* The NAP 2009 has specified for termination of the open AP by Dec 31, 2015 and the franchise AP by Dec 31, 2020

CAR PRICE REDUCTION? That's what they say...
 
* A car price reduction framework has been developed to fulfil the promise of gradual reduction ranging 20 per cent to 30 per cent over the next five years.
 
* More new national car models and variants will be introduced at competitive prices this year.
 
* The NAP 2014 will see a bigger base of new models being introduced in the domestic market. These models will not only be greener but also safer.
 
* The government is constantly reviewing its fiscal position and is open to possibility to reduce excise duties when the fiscal situation permits.
 
* Models such as Saga SV, Persona SV, Viva, Alza and MyVi S Series, the new Honda Jazz and Nissan Almera were introduced at reduced prices of between three and 17 per cent. These models accounted for 30 per cent of market share in 2013.

ENERGY-EFFICIENT VEHICLE (EEV)
 
* Malaysia to become an energy-efficient vehicle (EEV) hub. This encompasses strategies and measures to strengthen the entire value chain of the automotive industry and will also lead to environment conservation, high-income job creation, transfer of technology and create new economic opportunities for local companies.
 
* The EEV includes fuel-efficient vehicles, hybrid, electric vehicles and alternatively-fuelled vehicles.


Alright, that's basically the Highlights of it. It's from the highlights presented in NST. There is one important point missing though....the tax-exemption benefits of the hybrid cars and electric vehicles (EV) will no longer be available. Only those stocks that are already available in the country will continue to enjoy those. (So, buy the available hybrid cars at a cheaper price...it's now or never!!)

So, why did I say it raises more questions than answers because first of all, there is a whole lot of OBJECTIVES in the announcement and hardly any RESOLUTIONS on how to implement it. There are so many repetition on the "in depth studies that are required" especially in regards to the AP. And how are we suppose to be the energy-efficient vehicle (EEV) hub if it's not going to be beneficial to investors? Malaysia is definitely not as attractive as Thailand and Indonesia from the looks of it. The announcement on the car reduction price, over the next 5 years? Sounds more like another "PROMISE" that Malaysians are used to hearing....But really, I am disappointed. And all of that show us what our politicians are busy with....all talk and no real work done. These uncertainties are definitely not good for the country, whether to attract investors or to help the citizens. And it's annoying to read things like "the government is open to the possibilities of reducing excise duties when the fiscal situation permits". Anyway, the NAP 2014 is a disappointment...but the name NAP suits them...because that's what they are doing...taking NAP, forgetting that other countries are getting ahead of us. 

We are too busy with the "Allah" issue...we are too busy with the "Kangkung" stories....we are too busy with so many other things for the sake of POLITICS. 

Enough said. 

- an opinion of an angry Malaysian-

3 comments:

  1. They compare Nissan Sentra price and Nissan Almera, thus the big drop in price.

    ReplyDelete
  2. It's unbelievable how idiotic this policy is....anyway, apparently Honda Jazz will benefit from this.

    ReplyDelete
  3. Well, the new Honda Jazz apparently is the old Honda Jazz.

    ReplyDelete