AUTOMOTIVE exports are inadequate and need to be stepped up if the industry wants to remain competitive in an environment where economic giant China is edging up as an important exporter.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the ministry was not happy with the current export performance of motor vehicles.
“Auto components, in comparison, have been doing well,” he said, when speaking at a media conference after the signing of a vendor development programme by Keretapi Tanah Melayu Bhd, CIMB Group Holdings Bhd, UMW Corporation, Tenaga Nasional Bhd and Pharmaniaga Bhd.
According to the Malaysia Automotive Institute, the country exported RM793 million worth of motor vehicles in 2013 compared with RM4.39 billion worth of automotive parts and components.
Mustapa said the competitiveness of the industry can be gauged by the level of exports and already there is intense competition from Japan, South Korea and the US.
“Increasingly, perhaps in the future, we should be aware that the Chinese are building capabilities in the automotive sector.”
Meanwhile, the National Automotive Policy, which was rolled out in January, will be up for a review in mid-January.
Mustapa said the NAP showed that some companies had made progress and were competitive in the market while some were not.
On 1Malaysia Development Bhd’s investment in Cayman Islands, Mustapa said it was not an unusual practice, considering banks and sovereign funds have been doing the same.
On the vendor programme, he said another seven programmes will come on board soon.
Asked about the preparedness of Malaysian businesses, especially among Bumiputeras, he said the Asean Economic Community marks the progress made over the past 20 years when tariffs were gradually removed.
“More importantly, Bumiputera entrepreneurs should look for the opportunities in the single market instead of focusing on the challenges. They should also ensure that they remain competitive in the sectors that they are involved in,” Mustapa said.
