14 theSun | WEDNESDAY MAY 27 2009

business

M’sia back as top auto producer in Asean

KUALA LUMPUR: Malaysia has regained its
position as the largest automative producer in
the Asean market for the first quarter of 2009,
taking over the lead from Thailand.
The country, which has been trailing
Thailand since 2003, recorded the highest
total industry volume (TIV) of 118,681 units,
president of the Malaysian Automotive As-
sociation (MAA) Datuk Aishah Ahmad said.
She said Thailand was in second place with
a TIV of 107,774 units followed by Indonesia
with 99,754 units.
“There are some signs to show there is
more confidence in the market. I guess the
stimulus package as well as the introduction
of new models have pushed the demand in
the local market,” she told reporters after
the opening of the Second Kuala Lumpur
International Automotive Conference 2009
yesterday.
Aishah said the impact of the global economic
slowdown on the local automotive industry has
been mild due to prompt counter measures by
MAA members to tackle the crisis.
“The lessons learnt from the financial crisis
in 1997 have in many ways helped our mem-
bers to take proactive measures promptly and
correctly,” she said.
On whether the review of the National Au-
tomotive Policy (NAP) will see lower tariff for
local cars, she said: “As far as the local tariffs like
excise duty and sales tax are concerned, I do not
foresee the government reducing them as yet.”
Starting from Jan 1 next year, import duties
from Asean countries will be reduced from
the current 5% to 0% for complete build-up
(CBU) vehicles, she added.
Aishah said the review of the NAP should
be able to stimulate the automotive industry
and also encourage the usage of more local
components to support the local industry.
– Bernama

Penang retains
National Automotive high ranking
in investments
Policy under review by Opalyn Mok
newsdesk@thesundaily.com

GEORGE TOWN: Penang is still No. 4 in the coun-

by Karen Arukesamy
newsdesk@thesundaily.com
KUALA LUMPUR: The government
is reviewing the National Automotive
Policy (NAP) which will be concluded
by the third quarter of this year, Dep-
uty Prime Minister Tan Sri Muhyiddin
Yassin said yesterday.
“The review takes into considera-
tion views and proposals by the indus-
try associations, as well as relevant
government ministries and agencies,”
he said at the opening of the Second
KL International Automotive Confer-
ence 2009 at PWTC.
Barcelona “Special focus is being given to
facilitate and encourage the develop-
deserve ment of the automotive parts and com-
to win,
ponent sector,” Muhyiddin stressed.
say Having had a hand in the Inter-
national Trade and Industry Ministry
players previously, he acknowledged the impor-
pg 30
tance of having a clear indication in the
policies and plans for the healthy growth
and development of the industry.
He said the growing regional eco-
nomic integration is an important fac-
tor for the automotive sector’s growth
in the region.
“Market opening measures under
the Asean Free Trade Agreement
(AFTA) with dialogue partners have
contributed strongly to make Asean
one of the world’s largest producers of
motor vehicles and parts and compo-
nents,” Muhyiddin said.
He also said it will provide new op-
portunities for the automotive industry
with the Common Effective Preferen-
tial Treatment (CEPT) scheme.
“Under the CEPT and Asean Trade
in Goods Agreements, Malaysia has
agreed to eliminate import duties on
all products in the Normal Track on
Jan 1, 2010. This includes motor vehi-
cles, auto parts and components.”
“I believe Asean needs to focus more
on product specialisation going forward.
However, the potential of the Asean
market, which is about half the size of
China or India, cannot be discounted,
especially with rising income levels of
the Asean middle-class,” he said.
Muhyiddin explained that the
government will further enhance
opportunities for domestic industry
by participating in Free Trade Agree-
ment (FTA) negotiations bilaterally
and regionally in Asean.
He said the tariff reductions and
eliminations under the FTAs will
provide “competitive edge and greater
market openings”.
He also pointed out that although
the motor vehicle sub-sector in Ma-
laysia will not be directly impacted by
the global economic downturn, the
industry sales are expected to decline
by 12.4% this year due to its heavy
dependence on the domestic market.
Recognising the contribution of
the domestic automotive industry
towards the development of the coun-
try, Muhyidding said the government
has allocated RM200 million to the
automotive development fund to as-
sist as well as to ensure the continued
development of the industry during
the economic crisis.
try in terms of investments secured for the first
quarter of this year.
InvestPenang chairman Abdul Malik Abul
Kassim said the state received investments total-
ling RM749.8 million for the quarter, comprising
RM278.9 million in domestic investments and
RM470.9 million in foreign investments.
In terms of foreign investments, Penang ranks
second while retaining the fourth spot in domestic
investments although the amount has decreased.
Johor tops the list with a total of RM2.3 billion,
out of which RM815 million is domestic invest-
ments and RM1.49 billion is foreign investments.
In second place is Sarawak with RM1.6 billion in
domestic investments and RM99 million in foreign
investments, bringing the total to RM1.7 billion.
Selangor ranked third with a total of RM1.2
billion investments, of which RM899 million is
domestic investments.
According to Abdul Malik, the top country
investing in Penang is Singapore with a total of 16
projects, followed by Japan (14 projects), Taiwan
(10 projects), Korea (five projects), Australia (three
projects), Germany (four projects) and the Nether-
lands (five projects).
The industries involved include chemical
products, metal products, petroleum and oil
products, electrical and engineering, plastic and
food products.
“The investments for this first quarter is good
considering the global economic crisis but we
hope to be able to work on the second and third
quarters for more investments,” Abdul Malik
said.
He said out of the investments for 150 projects
last year, one was temporarily delayed and two
had been cancelled but the amount involved was
small.
Asked about the progress of the RM360 mil-
lion golf course in Batu Kawan, Abdul Malik said
discussions between the investors and Penang
Development Corporation are still ongoing.

GDP for 2009 expected to contract less than -1%

KUALA LUMPUR: The country’s
economy is expected to contract
less than -1% this year amid the
current economic climate, Second
Finance Minister Datuk Ahmad
Husni Mohamad Hanadzlah said.
“I cannot tell you (the growth
figure) but it will definitely be
below -1%,” he said when asked
to comment on the projection by
economists that the gross domestic
product (GDP) will contract between
-4.5% and -5% this year.
Bank Negara Malaysia’s GDP
forecast for the year is between
-1% and 1%.
Bank Negara will make an an-
nouncement on the first quarter
GDP today.
“Wait for Bank Negara’s an-
nouncement tomorrow (Wednes-
day). Prime Minister Datuk Seri
Najib Abdul Razak’s will make
another announcement the next
day on the new forecast growth
for 2009 and we will then know the
position of the country’s economy,”
he told reporters after officiating
the launch of the Securities Com-
mission Executive Enhancement
and Development Programme,
here yesterday.
Husni, however, said the
economy would recover in the
third quarter of this year, as the
impact of the recent RM67 billion
economic stimulus package begins
to be felt.
As for 2010, he said the govern-
ment believed growth would be
positive.
Asked as to whether there would
be more liberalisation measures in
the near future, Husni said that the
government is currently working on
the development of new economic
model for the country.
“The economic model is in the
planning stage,” he said, adding
that the government would study
which areas should be further
liberalised.

Indonesian operations. chairman Tan Sri Muhammad Ali Hashim said

The company registered a revenue of RM1.31 bil- yesterday.

briefs
Pharmaniaga on track
for 6% growth
SHAH ALAM: Pharmaniaga Bhd is on track to
achieve its key performance indicator (KPI) target
of 6% revenue growth this year, its chairman
Datuk Azman Yahya said yesterday.
He said to achieve this, the company was
continuing to focus on its Malaysian and
lion last year, up 10.3% from RM1.18 billion in 2007.
“We will make every effort to achieve the KPI
target,” Azman told reporters after the company’s
annual general meeting (AGM) yesterday.
– Bernama
Kulim to expand operations
in PNG, Solomon Islands
JOHOR BARU: Kulim (Malaysia) Bhd has identi-
fied more than 10,000ha of land in Papua New
Guinea (PNG) and the Solomon Islands for the
development of new oil palm plantations, its
The company’s aggressive expansion in
the two countries will be undertaken by its
subsidiary companies New Britain Palm Oil
Ltd (NBPOL) and Ramu Agri-Industries Ltd.
Earlier, Muhammad Ali announced that the
company’s pre-tax profit for the first quarter
of 2009 had declined by 39.23% compared
with the corresponding period of last year.
However, although its pre-tax profit fell to
RM129.32 million compared with RM212.79
million last year, its revenue went up 54.33%
to RM463.46 million, Muhammad Ali said.
– Bernama