CYBERJAYA: Entrepreneur Development Minister Redzuan Yusof today said only part of the RM20 million fund for research and development (R&D) for the ministry will be used to develop the third national car prototype.
He said his ministry, like other ministries, had grants for R&D and he had suggested to the Cabinet to utilise this fund to create the national car prototype.
At a press conference after the pre-launch of the Malaysia Halal Expo 2019 here, Redzuan also said the cost to build the national car prototype, to be developed by a vendor to be identified later, would be much lower than that.
He was responding to criticism against the ministry’s move to use government funds to develop the national car project.
Yesterday, Redzuan had said his ministry had approved close to RM20 million to attract private investors to develop the prototype.
At the press conference, he said critics of the third national car project did not understand its benefits.
He said the development of the national car could be the catalyst to many automotive entrepreneurs and those involved in the Internet of Things, robotics, software and aerospace to enjoy the opportunities.
“It will involve a great deal of engineering activities because car manufacturing needs a lot of expertise, and that’s why we must create a model or prototype, which needs funding” Redzuan said.
Finance Minister Lim Guan Eng had earlier said the government had not made any decision to invest in the third national car project, but stressed that it had no problem in providing allocations to carry out R&D.