With impending liberalisation, car prices go up instead
We waited with anticipation for 2004, what with the Asean Free Trade Agreement (Afta) so many of us were planning on buying that new car. At last we would be able to choose and not have to look only at Proton or Perodua.
What is Afta all about? Consumers hope to be able to choose the car of their choice with free competition on pricing. Why did Malaysia become a signatory to this deal? Was it to enable the taxpayer to enjoy a more competitive price, or was it to protect the local industry and increase prices.
After all the waiting, it is rather disappointing to read that car prices are going up rather than down. Why is that? This industry was the brain-child of former premier Dr Mahathir Mohamad, using authoritarian rule to push it down our throats! It was to prove that the bumiputras could also become car producers. He used civil servants and persons close to him to build this industry.
It was also a way of providing opportunities for bumiputras to secure managerial positions. It would have been much better if we had used expertise from the private sector to advise and guide this competitive industry. But pride and selfishness has brought us to the present situation.
Proton is incapable of competing in the international areana. We must be prepared to call a spade a spade. By supporting and subsidising the automotive industry, ordinary citizens are having to pay more. Why should we be held responsible for the wrong decisions made by Mahathir? This subsidy will burden not only us, but future generations as well.
There is only one question to ask: is Proton ready and capable of competing internationally? Ten years ago we expected Afta would arrive. So what is the excuse? Has the management been complacent, relying on the government to protect it forever! With their 'tidak apa' attitude, they were hoping that Petronas would eventually bail them out, and that the management would not be held responsible. They may even walk away with a handsome reward at the end.
The rot of government-supported companies existing without any direction or purpose has reached devastating proportions. If allowed to continue, it will be detrimental to the country. Please liberalise the industry and stop burdening the people.

