The Report Of Survey Question

INTRODUCTION

This project is about studies on national policies that have in Malaysia. So, we have chosen National Automotive Policy as our topic for this work activity. Here, some information about this topic, National Automotive Policy.Since the establishment of Proton in 1985, Malaysia has succeeded in developing integrated capabilities in the automotive industry, which include local design and styling capability, full scale manufacturing operations and extensive local participation in the supply of components. Today, Malaysia is ASEAN’s largest passenger vehicle market with more than 500,000 vehicles sold annually with 90% of that manufactured or assembled domestically. Nevertheless, much of the country’s success in developing the domestic automotive industry has been facilitated by policies that have promoted local vehicle manufacturers and moving forward, global and domestic challenges put the sustainability of this industry at risk. The global industry is seeing slow growth, value destruction and massive renationalisation, driving vehicle manufacturers to merge to achieve even higher levels of scale. Recognizing this global environment, the National Automotive Policy (NAP) seeks to address the manifold issues and challenges and transform the domestic automotive sector to become a more viable, competitive and significant contributor to the economy. Moving forward, Government policy and support will be focused towards automotive industry participants providing sustainable economic contribution. The key drivers for such contribution will be economic scale, industry linkage and competitive value added activities.

We also include, some of the National Automotive Policy. A total of 18 new policies and measures covering liscencing, duties, incentives, technology and environment, safety and standards and APs to be effective January 1st 2010.

• Open AP system to be scrapped by December 31 2015.

• AP holders will be audited twice a year.

• A gazetted Customs price list for used CBU cars to be established to supplement the current list of new CBU cars. This will be used to prevent under declaration of gray import vehicles by declaring then as “used” instead of new in order to manipulate the price, as the gazetted price list is currently only for new vehicles.

• A large chunk of the RM300 million expected to be collected from the RM10,000 per Open AP fee to be used to develop the auto industry and increase Bumiputra entrepreneurship participation in the auto industry.

• Import duty on CBU & CKD cars maintained.

• Import of used parts to stop in June 2011 (what???).

• Incentives and exemptions will be increased to develop local auto parts.

• Franchise APs to be terminated by December 31 2020.

• Foreign firms can apply for manufacturing licenses to hold 100% shares in firms to produce vehicles with engine capacity of larger than 1,800cc and costing more than RM150,000. This will open up the upper end of the market while keeping the lower end where Proton and Perodua are protected.

• Issuance of new Manufacturing License to be unfrozen for selected segments – hybrid and electric vehicles, pick-up trucks, commercial vehicles and motorcycles with engine capacity of 200cc and above.

• Vehicles 15 years and older will have to be tested for roadworthiness; provisions to be made for vintage cars.

• A new strategic partnership between Proton and an established manufacturer will be established.

To spur its further growth, the Malaysian automotive sector will be driven by six major objectives, as follows:

• To promote a competitive and viable automotive sector, in particular national car manufacturers
• To become a regional hub for manufacturing, assembly and distribution for automotive vehicles
• To enhance value added and local capabilities in the automotive sector
• To promote export-oriented Malaysian manufacturers as well as component and parts vendors.
• To promote competitive and broad-based Bumiputera participation in vehicle manufacturing, distribution and importation as well as in component and parts manufacturing.

ANALYSIS AND DISCUSSION

Question 1

SELECT THE RIGHT OBJECTIVE OF NAP?

• Malaysia as a regional hub for manufacturing, assembly and distribution for automotive vehicles
• Encourage indigenous participation in competitive and widespread in the sector manufacturing, distribution and importation

Based on the analysis, 75%of respondent answer with right objective. This result shows that Malaysian alert with our policy especially to those who have car and want to buy a car for themselves. 25% have answer it wrong. Because they did not know anything about this policy, and maybe they did not have any idea about this policy.

Question 2

DO YOU HAVE IMPORTED CAR?NATIONAL OR IMPORTED CAR? Most of malaysian, like to have imported car. Eventhough it is expensive, but the quality is good. And sometimes, they proud to drive imported car on the road. Based on this analysis, we can see that 58% of respondent have imported car as their own car. But only 42% of the respondent did not have the imported car, maybe just have national car or not have even one car at their home. So, generally, what would be the reason people choosing imported cars compare to national cars or on the other hand? Is it because the imported cars didn’t have any problem? Imported cars more high tech? Imported cars looks good? Imported cars makes you looks rich? Maybe there is something needs to be considered for Proton and Perodua to compete with other car brand instead of lower price.

Question 3

IF YES, HOW MANY?

Fromthis analysis, we know that malaysian like to have imported car at least one at their home. Related with the above analysis, we can see that 49% of respondent have at least one imported car at their home,18% have two and suprise that 30% have three car at their home, and 3% have 4 car. From this analysis, we can sure, that most of that our respondent like to have imported car. The factor why they like imported car is the quality of the car and it can use for a long time. Even it is quite expensive, but we satisfied with the condition of the car.

Question 4

DO YOU KNOW CBU &CKD CAR?

• CBU = car imported fully built.

• CKD = all the components, and parts needed to build a complete car, brought into the country, and assembled in an assembly plant.

From the analysis, 75% of respondent, did not know about the CBU and CKD car. And only 25% know about it. Sometimes, this term is important to the buyer when they want to buy a car. From this, we can compared with the price, and can compared it whether it is reasonable or not. On CBU/CKD issues, need to be careful that the CBU specs are suitable for Malaysia. If imported new, then usually the CBU version is suited to malaysia, if recond, some UK versions are not fully tropicalised (smaller radiator/air cond cooling coil, heaters in seats, etc). Japanese recond CBUs may be better for local use. That's why CKD versions are 'safer' to buy, they are spec for Malaysia and you can also verify their mileage/service history with the agent.

Question 5

Which policy gives emphasis to the ASEAN free trade area?

• NAP(National Automotive Policy)

From the analysis, 62% respondent give wrong of this respond. Only the 38% give correct respond. Implementation of the National Automotive Policy (NAP) is seen as a genius plan of the Government towards the provision of guidelines to be more transparent and fair for the benefit and development automotive industry of our country’s..This policy can provide confidence and attract foreign investors into our country for the long term based on the restructuring of the new tariff and tax field. This policy is also expected as an alternative to the best level of protection to the automotive industry nasional.Keunikan NAP seen to offset the long-term impact of the ASEAN Free Trade Area (AFTA) on the development of the automotive industry in our country. This is due to AFTA is expected to be a natural effect on ratings of car prices in national markets

Question 6

Which of efforts to boost the country's automotive sector?

• improving technology and human capital
• Making Malaysia a regional hub for manufacturing and distribution

The Government aims to position Malaysia as a regional manufacturing and assembly hub by encouraging existing participants to deepen their commitment in Malaysia. The Government will encourage existing vehicle manufacturers to rationalise the models assembled in Malaysia, scale up focused production and deepen industry linkage, in order to export competitively. It is expected that they will not primarily compete with high-volume national manufacturers in terms of pricing or target market.

The expansion of these participants and the deepening of industry linkages will also lead to greater scale and improved quality of the industry’s component vendor sector, thereby improving overall viability of the industry.

Question 7

WHICH ONE DO YOU PREFER? IMPORT OR NATIONAL CAR?

From this analysis, we know that, most of Malaysian like to have imported car compared to the national car. We can clearly stated that 51% like to have imported car. Why this phenomena happen? It is national car is not good and always broke down?. Although the rate of imported car is high, most of them like to have it. And 37% respondent said that they want to have national car. The price of car is reasonable and everyone able to have it. And 12% is others, because they do not want to have any car.

CONCLUSION

This survey is about the National Automotive Policy. We discuss about that because mostly Malaysian use car. Nowadays, car is very important in Malaysian life because they use the car every day and to go everywhere. The policy is important to use know , understand and apply in our life. That’s to help the economy in Malaysia.

From this survey, mostly Malaysian know the objective of National Automotive Policy. The objective is, Malaysia as a regional hub for manufacturing, assembly and distribution for automotive vehicles. Beside that, the encourage indigenous participation in competitive and widespread in the sector manufacturing, distribution and importation. Sadness, Malaysian like to buy and use imported car. The import car more give good condition than National car. In the same time, in one family, at least have one imported car. In the CKU and CKD issue, mostly Malaysian know and understand the effect both of them. This is important to the maintenance of the car if anything it happens. The special is NAP seen to offset the long-term impact of the ASEAN Free Trade Area (AFTA) on the development of the automotive industry in our country. Many Malaysia agree the effort of boost the country's automotive sector is the improving technology and human capital and making Malaysia a regional hub for manufacturing and distribution

In the conclusion, the National Automotive Policy (NAP) have aims to make the Malaysian car manufacturer in the future relate the rules of NAP.In the same time and indirectly, the policy will make help the economy of Malaysia is most stable.