“We are shocked that the government of the day is embracing private cars over public transport after cancelling overpriced public transport projects,” 4PAM president Ajit Johl told FMT.
“We would have assumed that the government would find an alternative solution to improve public transport, but to suggest having another national car is simply blind pride.”
He was responding to Prime Minister Dr Mahathir Mohamad’s remarks in Tokyo yesterday that he planned to start another national car project, after Chinese company Zhejiang Geely Holding Group took a 49.9% stake in Proton Holdings Bhd last year.
The PPBM chairman had first mooted the idea in August last year after the Geely deal was finalised.
“If I cannot get Proton, I have some ideas about starting another automotive company,” he said.
“Remembering, of course, that the idea to build another national car is because (like Proton) it can become a catalyst for the growth of our engineering know-how and capabilities.”
Ajit said the government had had to bail out Proton, the first national car maker, despite putting in place policies to help it survive.
He said loans were given to government employees to purchase Protons, while taxis were also forced to use Proton cars which he claimed contributed to the failure of the taxi industry.
Ajit said the government should not encourage people to purchase a depreciating asset at a time when many were tightening their belts.
He said car sales had been decreasing, and many people were now turning to public transport and ride-sharing services.
“If the public is getting smart about transportation, the government too should start thinking of the welfare of its people instead of going on an ego trip with a national car project,” he said.
Ajit added that another car project would encourage private transport, leading to the government having to spend more on fuel subsidies to maintain the current pump prices for RON95.
“We sincerely hope that the government overturns this decision and we urge the newly elected MPs to voice their concerns before this project becomes a reality.”
Meanwhile, Adli Amirullah, an economist with the Institute for Democracy and Economic Affairs (IDEAS), said forcing the development of a new national car could prove to be a “costly distraction” for the government as had happened with Proton.
“They should not repeat the same mistake,” he said, adding that Putrajaya should avoid getting directly involved in the market.
He said the government should instead focus on developing a stable and competitive business environment to support the growth of local firms and draw foreign investments into the country.
Additionally, he said, the government could promote partnerships between local private businesses and overseas manufacturers.
“The general idea is to raise local private businesses and equip them with the relevant knowledge and skills to be partnered with international car manufacturers.”
Rembau MP Khairy Jamaluddin had also criticised the idea for another national car project, saying the government had channelled financial assistance to Proton since 1984, including easy loans and grants totalling RM15.3 billion.
He said any plans for a new national car would be regressive and backward, given the scrapping of public transport projects like the MRT3.