Proton must first dominate the local automotive market without any form of tax protection before it can take the lead in making Malaysia an automotive export hub. Proton may have something to offer the global market from the tie-up with China car manufacturer Geely. But it has yet to prove itself in a free market.
On differential excise taxes, Malaysia imposes high excise taxes on car manufacturers, ranging from 60–125% depending on the car size. Thus far Proton has been protected through higher taxes on imported cars. This was from 1983. This protectionist policy has deterred foreign investors from investing in the country’s automobile market. Many car manufacturers shied away from setting up their plants in Malaysia. They went to Thailand and China instead. Now Vietnam. Proton should venture into electric vehicles as many countries are shifting from petrol engines to electric motors.
Source: https://e
Industry experts say Proton and Perodua cannot keep up with global developments because of protectionist measures such as high tariffs, import duties of approximately 30% for cars from non-Asean countries, and the requirement for approved permits to import foreign cars. Trump is not alone!
Proton needs to "graduate" from government protection and become more competitive in a free market. The government's protectionist policies have deterred foreign investors and prevented Malaysia from becoming an automotive export hub. And more to my heart made people “suffer” by subsidising out-dated technology and output.
Reference:
Let Proton stand alone before challenging the world, says expert, Shahrul Shahabudin, FMT, 16 May 2023
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