I'd like to actually try speaking in defence of our local car companies rather than take part in the lambasting that has been going on recently. For our analysis, let's examine the Korean car makers and their market which has been held up as the shining capitalistic example for us to follow.
As recently as 2000, the total number of foreign vehicles in Korea remained below 0.8 percent. Let me re-emphasise that - 0.8 percent. But haven't we heard the Korean market are ‘free and open’ (as opposed to evil, protected us)? Reality suggests otherwise. Some notable quotes from the linked article above:
‘...official anti-import efforts designed to label purchase of foreign vehicles as unpatriotic [...] required Koreans to indicate on federal tax forms the make and model of their automobiles [...] guaranteeing a tax audit for those owning foreign models’.
‘...camera teams from two public Korean television channels clandestinely followed drivers of foreign cars as they shopped [...] these individuals were described as likely to be crooks and tax evaders - simply because they drove foreign cars’.
Just five years ago Kia largely stood for ‘Keep It Away’ in the US. It could only compete (barely) with rock bottom pricing and even then, the company was widely shunned as only being capable of making ‘lemons’. Sound familiar to a certain local company that shall not be named?
To summarise, the Koreans may not have APs, but protectionism in another form is no different from any other. A firm 99 percent share of the domestic market is some heavy capital to work with.
There was a long period during which the major Korean car manufacturers were viewed as only capable of producing shoddy products, or could only ‘remodel’ existing designs from other, established manufacturers. Again, sound familiar to yet another local company that shall not be named?
Am I suggesting that we go all out for protectionism and jack up tariffs for foreign vehicles sky high? Not at all. I believe our local car companies won't feel the heat to buck up unless there's competition nipping at their heels.
On the other hand, I think it’s shortsighted to call for the abolishment of all trade barriers. People tend to forget that we're still a ‘developing’ nation.
I'll be the first to admit I've been largely disappointed by our national car industry’s offerings over the past decade. But I'll also admit that slowly, they are getting better. Recent efforts by some of local car makers encourage hope that perhaps, they are finally adopting the correct mentality.
So, my dear fellow Malaysians, what will it be? Do we (grudgingly) give them our support as they test their wings, or do we stomp them into the ground for the embarrassment they've been? Choose carefully. |
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