KUALA LUMPUR : Malaysia's Trade Minister Rafidah Aziz has insisted the country's auto sector is still attractive to foreign carmakers despite the failure of several potential tie-ups.
"Although we have lost two (possible tie-ups) to a neighbouring country in the last decade, there are still others who are interested," Rafidah was quoted as saying in the New Straits Times.
"I still think there is a future for the local automotive industry. (Foreign players) know that we are serious," she added.
Rafidah's comments followed news of a decision by German carmaker Volkswagen last week to scupper an alliance with Proton seen as crucial to the embattled Malaysian car maker's fortunes.
The deal, in discussions for over a year, had been highly anticipated and news of the failure has seen loss-making Proton's shares sliding daily as analysts advise investors to cut their losses.
Rafidah refused to comment on the deal but said the slow implementation of a revamp of Malaysia's car sector to make it more competitive had contributed to the loss of the foreign tie-ups to a neighbouring competitor.
Thailand has become the regional centre for auto manufacturing and assembly, while Malaysia has been struggling to put in place its national auto policy, the framework for which was announced in October after numerous delays.
"Unfortunately for us, because we delayed in our decision to put into place the mechanisms that would make Malaysia attractive to the big players, they have gone off to a neighbouring country," she was quoted as saying in the Sun daily.
"We lost one big partnership earlier on in the mid-90s and I know of one very big multinational (corporation) also, because we couldn't decide on the arrangements, they went to a neighbouring country. So I know of two in the last decade." - AFP/de
I believe one of the 2 automarkers is Toyota
