How should we judge a government?

In Malaysia, if you don't watch television or read newspapers, you are uninformed; but if you do, you are misinformed!

"If you're not careful, the newspapers will have you hating the people who are being oppressed, and loving the people who are doing the oppressing." - Malcolm X

Never argue with stupid people, they will drag you down to their level and then beat you with experience - Mark Twain

Why we should be against censorship in a court of law: Publicity is the very soul of justice … it keeps the judge himself, while trying, under trial. - Jeremy Bentham

"Our government is like a baby's alimentary canal, with a happy appetite at one end and no
responsibility at the other. " - Ronald Reagan

Government fed by the people

Government fed by the people

Career options

Career options
I suggest government... because nobody has ever been caught.

Corruption so prevalent it affects English language?

Corruption so prevalent it affects English language?
Corruption is so prevalent it affects English language?

When there's too much dirt...

When there's too much dirt...
We need better tools... to cover up mega corruptions.

Prevent bullying now!

Prevent bullying now!
If you're not going to speak up, how is the world supposed to know you exist? “Orang boleh pandai setinggi langit, tapi selama ia tidak menulis, ia akan hilang di dalam masyarakat dan dari sejarah.” - Ananta Prameodya Toer (Your intellect may soar to the sky but if you do not write, you will be lost from society and to history.)

Friday, July 27, 2012

Time for Proton to 'potong' its umbilical cord

This is proof that we are forced to pay higher prices for motor vehicles because of Proton:

"MAA president Datuk Aishah Ahmad also disclosed that the government is still controlling the prices of imported cars and if the prices are found to be approaching or lower than domestic car prices, the government would ask the manufactures to increase prices before allowing them to enter the market.
The Competition Act should be meant for encouraging fair competition and pressing down prices to benefit consumers, but it seems now to have serving exactly the opposite purpose. It seems like the transformation plans are unable to get rid of the protection policy. That is why, the opening up pace of the national automotive policy is so slow, causing the commitment to attract foreign investment lacks convincing and foreign car manufacturers have chosen to set up plants in other countries."

Now seems an opportune time to discontinue protective excise and import duties meant to mollycoddle Proton. It is now in private hands and the new owners should try to compete on a level playing field with other car makers.

The initial impact of cheaper cars would hit recent owners of new vehicles bought at high prices. There should be a mechanism to soften the impact over a few years, otherwise, it would be unfair to them as well as the HP financiers. This is just a one-off bitter pill to swallow if we are for solving this ongoing problem. In effect protecting a continually failing company is using good money chasing bad. A case of misallocation of scarce resources.
Proton started as one of the pet projects of then PM, Dr. Mahathir. He went against advice that Malaysia did not have a sufficiently big home market to have its own car manufacturing company. To prop up the failing enterprise, besides protective excise and import duties, even government loans to civil servants to purchase cars were made conditional upon buying Proton. Official cars had to be Protons too. It had protection for the past 27 years and we continue to pay higher prices for them than foreigners buying them overseas!
Our national pride and an ex-PM's ego should not be the reason to continue having all car purchasers to pay heavily to maintain this particular car company, its employees and parts suppliers. If they cannot compete on level grounds, then they should do something about it. Britain's long history in manufacturing motor vehicles did not stop its famous marques like Rolls Royce, Jaguar and Rover from being taken over by foreigners. It was due to economic reasons and their employees had to adapt to be more efficient under foreign management.

Update on August 3: Malaysia Chronicle...

Update on August 8: Malaysiakini...
Why are cars way cheaper in the US?

1 comment:

Anonymous said...

1 Why should there be a mechanism to soften the impact on recent owners of new vehicles over a few years? Stop buying new cars, buy pre-owned cars. Then immediately abolish import/excise duties/taxes if Opposition come into power (as promised).
There are many potential new car buyers who couldn't afford these taxes. Moreover, these taxes are unfair to all the consumers.
2 Perkasa's claim of lost employment if Proton close shop is just excuses. If Proton close shop, other international car manufacturers can employ them.
3 About the Proton parts vender/suppliers, they are mostly politician's cronies. Let them "sink". We are being "milked" by them for far too long.