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| August 29, 2000 |
Globalisation: How Will The Malaysian Motor Industry Compete?
Preface:
After the past three years of dismal growth, the outlook for the local
motor industry has improved in tandem with the recovery in the economy.
As a whole, Malaysian vehicle sales this year are expected to reach
350,000 units, up 21% from last year, and closing in on 1997's high
of 404,869. The pick-up in auto sales was evident in the strong rebound
seen in 1999, as volumes grew an impressive 76% to 288,000 units.
Proton, which remains the biggest player in the market with
a 42% market share has the most to gain from this. The recent launch
of the Proton Waja has also been hailed as another step in the development
of the local car industry, and is sure to provide a much needed boost
to the market. Although not yet 'pure' Malaysian, it has definitely
moved up the value chain and collected valuable intellectual property.
Of course, Proton's recent acquisition by Petronas has provided it
with the necessary financial clout to be competitive.
Meanwhile, the other players in the industry have been equally active.
Foreign players have been positioning themselves for the Asean Free
Trade Area (AFTA). For instance, UMW has sold a bug chunk of stock
back to Toyota, while Ford has raised its stake in AMIM. Most recently,
Honda has set up a new vehicle plant jointly with DRB-Hicom and Oriental.
This plant is slated to begin operations in 2004 and will incorporate
Honda's world-class manufacturing systems.
AFTA continues to be the major issue. At a meeting of ASEAN economic
ministers in May, Malaysia won postponement of the sector's inclusion
until 2005. As a result, duties on automobiles and parts imported
from neighboring countries will continue to be taxed with a 70%, as
opposed to the 5% cap that will be imposed once AFTA comes into place.
Nevertheless, the moves we are seeing by the major players point to
the inevitability of trade reductions. How and when this will happen
is another key issue. |
THE PANEL:
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Mr Koo Sian Chu [KSC] is a Director with
APM Automative Holdings BHD. He joined the Autoparts Division in
1985 as an executive director of one the companies. Prior to this,
Mr Koo was with the MIDA for a total period of 15 years. He has
served in a number of overseas missions for MIDA, promoting Malaysia's
investment opportunities and development potential to foreign investors.
His last posting with the MIDA was in Tokyo, where he held the position
of Overseas Director. Mr Koo graduated from the University of Malaya
with a Bachelor's degree (Honours) in Economics in 1971. Mr Koo
was appointed a Director of APM on 25 October 1999.
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En Ab Razak Harun
[ARH] is the Managing Director and one of the founders of Autoindustries
Ventures Bhd. He was appointed to the Board on 8th August 1990.
He obtained his Bachelor of Science (Honors) degree in Production
Engineering and Production Management from the University of Nottingham,
United Kingdom in 1979. Prior to his appointment to the Board, he
was an Industrial Engineer with Motorola (M) Sd Bhd. Subsequently,
En Ab Razak joined Hicom Bhd where he was seconded to Proton Sdn
Bhd in 1983. He was also the Independent Director of AIC from 1994
to 1995 and was later appointed Managing Director of AIC before
he resigned in April 1996.
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Loke Chee Kien
[LCK] is the Head of Research at Sarawak Securities Sdn Bhd.
Prior to joining Sarawak Securities, he has worked with a range
of top notch financial institutions, which include Deutsche Morgan
Grenfell, Jupiter Securities, Chase Manhattan Bank and Arab-Malaysian
Corporation Bhd. In addition, Mr Loke has garnered numerous qualifications.
He has an MBA (Finance), CPA (Australia) and Degree in Accountancy
& second major in Economics & Finance.
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Reza Mutalib
[RM] is the Assistant Vice President of Research at Merrill
Lynch & Co (Malaysia) where he covers Automobiles/Autoparts and
Building Materials. Prior to joining Merrill Lynch, Mr Reza was
an analyst at Peregrine Research (M) Sdn Bhd. He subsequently joined
Proton where he worked in the International Business Division as
a regional Executive in charge of all export related activities
in the Middle East Region. Mr Reza has a Master of Arts in Economics,
September 1997 from the Northeastern University, Boston, USA with
a concentration in International Economics.
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MODERATORS:
Rajen Devadason [RD],
(RD Book Projects) Rajen Devadason is an award-winning journalist.
As staff writer, of Malaysian Business magazine, he won the Malaysian
Press Institute's award for best economic journalism in 1992 and
the Citibank Pan-Asia business journalism award, which included
a stint at New York's Columbia University and visits to the White
House, World Bank and the US Federal Reserve. His first book "Your
A-Z Guide to the Stock Market" was published in 1997 and since then
he has seen a new book out each year. Rajen holds a Bachelor of
Science (Honours) degree in Physics and Computing from King's College,
University of London, and is a member of MENSA UK. He currently
writes two distinct financial planning columns - a print column
for Malaysian Business magazine and an online one for ZoomFinance
- and is overworked as a financial planning trainer-cum-consultant.
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Steven
K C Poh [SP], (I-2Media Sdn Bhd)
Ex-journalist Steven Poh is the Chief Executive of I-2Media Sdn
Bhd, an online content and electronic community developer. He was
formerly business correspondent for Asiaweek magazine and General
Manager/Senior Consultant (Virtual Communities) of a KLSE-listed
software development house. He won the 1992 Malaysian Press Institute
prize for best magazine writing while still at Malaysian Business
(where he started his journalism career). Also a former Press Fellow
of Wolfson College at the University of Cambridge, Steven graduated
with a degree in Communications (Journalism) from Southeast Missouri
State University. He completed his Master of Science degree in Speech
Communication from Southern Illinois University at Carbondale.
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Click
here for the full transcript. |
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