Kuala Lumpur: Allowing the import of completely built-up (CBU) cars with small engine capacities will lead to the dumping of such vehicles in the local market and hamper the government’s goal of developing the local automotive industry, deputy investment, trade and industry minister Liew Chin Tong said today.
He said it would hamper the goal of the National Automotive Policy 2020 if original equipment manufacturer (OEM) companies shifted their activities from local car production to the import of CBU cars.
“At the same time, it will affect the long-term investment planning for local production by OEM and national car companies.
“This will affect local vendor development efforts and lead to the loss of employment opportunities for locals in the future,” he said during the question-and-answer session in the Dewan Negara.
He was replying to senator Seruandi Saad’s query on the government’s willingness to review standard operating procedures and import permit regulations for the entry of vehicles with low horsepower such as 660cc.
Liew said the focus of the local automotive industry’s roadmap is on encouraging local assembly activities by national carmakers and OEM companies, regardless of vehicle brand or engine capacity.
“Having a small engine capacity does not necessarily mean a particular vehicle will be sold at a cheap price, as imports are still subject to import tax, excise duty and sales tax,” he added.
