The government has allocated RM750 million in two separate funds as a long term plan to increase the sale of national cars in local and international market.

The two funds - Automotive Development Fund and Modernisation and Automotive Fund - were set up in February and have RM450 million and RM300 million respectively.

"The funds will help car component manufacturers to reduce their manufacturing cost," said International Trade and Industry Deputy Minister Ng Lip Yon

"This will eventually lower the car price," the parliamentarian for Batu constituency added.

Ng was replying to a query from Wong Nai Chee (BN-Kota Melaka) who asked the International Trade and Industry Minister to state long term strategy to revive the sales of national car at the local and international market.

Besides the government, Ng added, Proton and Perodua have also taken measures to implement marketing strategy and boost sales locally as well as in international market.

According to Ng, Proton and Perodua have reduced the manufacturing cost of the cars, and the introduction phase of the new models based on the cars' size, concepts and development programmes.

The quality of the cars have been upgraded and they are also working on strengthening the brand name through participation in automotive shows, A1 Grand Prix and marketing exercise to car vendors, he added.

"The introduction of promotion schemes like rebates and easy payment system also will boost car sales."

Bankrupts

On a different matter, Deputy Minister in the Prime Minister's Department M Kayveas said that 13,590 individuals have been declared bankrupt in the High Courts last year.

However, 2,777 of them have been discharged from bankruptcy, he said in a written reply.

"We have filed 153,676 cases of bankruptcy until February," said Kayveas.

Kayveas was responding to Tiong Thai King (BN-Lanang) who asked the Prime Minister to state the number of individuals who have been declared bankrupt in 2005 and 2006 and the number of those who have been discharged from bankruptcy in the same period.

"For 2005, we have 15,868 bankrupts and 2, 543 of them have been discharged from bankruptcy."

He also revealed that there are no records of any prominent figures who have been declared bankrupt in the recent months.

According to Kayveas, among the reasons for bankruptcy are income tax and credit card debts.

Other reasons are also personal and business loans, he added. He also listed corporate and social guarantors as those who are prone to bankruptcy.