PROTON Describes NAP Framework As Positive

KUALA LUMPUR, Oct 19 (Bernama) -- The National Automotive Policy (NAP) framework is a positive step in the evolution of the Malaysian automotive industry as it would create a more competitive playing field, a statement from PROTON said here Wednesday.

The NAP would also maintain a conducive and more transparent environment to develop the nation's industrial potential, a PROTON spokesman said in the statement.

"The main objective of the national car project has always been to drive the nation forward by developing our national capability and PROTON believes that the NAP will allow this to be nurtured further while creating a more conducive trade environment," the spokesman said.

Besides streamlining the procedures for Approval Permits (APs) for the importation of cars into the country, the NAP framework, announced Wednesday, has provided several customised incentives even for non-national car manufacturers.

Car manufacturers will be accorded the incentives after due consideration and evaluation as they would be tailor-made to meet the specific needs of an investor.

The incentives will be based on criteria like the level of high value added, degree of technology transfer, improvement in the level of local expertise, level of foreign exchange earnings, contribution to the manufacturing value chain, development of linkages within the industry and research and development efforts.

Currently, customised incentives including tax and non tax incentives are only granted to qualified projects in the manufacturing sector.

These incentives include corporate tax exemptions, training, R&D grants as well as soft loans.

Government officials meanwhile are saying that the incentives under the NAP framework are aimed at getting car manufacturers to consider making Malaysia their base.

Besides making Malaysia a regional automotive hub and promoting a competitive and viable automotive sector, the other objectives of the NAP are the enhancement of value-added and local capabilities in the sector.

They are also aimed at promoting export-oriented Malaysian manufacturers as well as component parts and vendors, increasing competitive and broad-based bumiputera participation in vehicle manufacturing, distribution and importation as well as component and parts manufacturing.

-- BERNAMA