Every country has their own national automotive policy to cater for their own domestic market. Some of the policies are skewed towards Going Green to help the environment and some are designed to promote and protect local manufacturers, and some are there to help overall growth of the automotive industry domestically.
In Malaysia, the National Automotive Policy is more flawed than a pothole ridden road. The National Automotive Policy (NAP) has been designed specifically around the protection of Proton and Perodua, and to aid the well connected businessman who are within the close circle of government ministers with the seriously flawed Approved Permit (AP) system. This AP system was subject to abuse and made many government linked businessmen very rich by only selling import permits for US$15,000 each. To make matters worse, these businessmen where making it difficult for car distributors or even car manufacturers to import their own cars. This AP system was initially planned for abolishment in 2010 but until today this system is still being used as the government linked businessmen were able to lobby for further extensions. This has meant that imported car prices will remain one of the highest in the world. For the sake of enriching a few businessmen the country continue to suffer. Loss of jobs, loss of foreign investment and burdening the public with high priced cars.
Over the years the Malaysian government has changed their NAP to try to evolve with the times however it has always fallen short of anything significant and this has frustrated many car manufacturers. This has led to many of them opting to invest heavily in Thailand and Indonesia instead. The loss of foreign investment is well over US$200 million in direct capital investment and massive opportunity cost in terms of employment and local parts supply business. One foreign business report estimated 200,000 potential jobs would be created if the automotive industry was open. Foreign car manufacturers are constantly confused with the policies tabled in the NAP. Many don't know found that the policies were not fair and they simply did not have the confidence to invest in Malaysia.
Proton is a poorly managed car manufacturer that is like a baby that refuses to grow up. Surviving on government protection, Proton's days are numbered. As the Malaysian government has been under tremendous pressure from neighbouring countries and other trading partners to liberalize the automotive industry. As each NAP is tabled the Malaysia automotive industry is slowly opening up. It is still a positive step considering how slow it takes for any significant changes to be seen. The changes in Malaysia's NAP is still seen by many as a half baked attempt to pacify trading partners and foreign car manufacturers.
Having made Proton a private company again, the Malaysian Government may not necessarily protect Proton as much as before and this could spell some positive changes to the automotive industry. Whether this will happen is still questionable.
The current political scene in Malaysia is a hot debate as the Opposition party has garnered tremendous support. With the ruling party being the one behind the NAP and Proton, if the Opposition wins the next upcoming elections, there is a possibility for car lovers in Malaysia to rejoice as the NAP will be completely different and the AP system will most likely be scrapped with immediate effect. The NAP will probably see a much more open automotive industry to stimulate more foreign investment, creation of jobs and promote more local supply business opportunities.
As far as I know, all Malaysians would wish to have more affordable cars and not be saddled with crazy car loans stretching up to 9 years! Owning a car should not be a luxury but a right to a basic necessity.
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