In the conference titled 'National Conference on Competing after Afta:Challenges and Opportunities' organised by the Asian Strategy and Leadership Institute in Kuala Lumpur, Deputy Minister of International Trade and Industry Kerk Choo Ting was quoted as saying that "the government cannot open up the auto industry without giving due consideration to those involved in the national car industry".

However, I would like to question the wisdom of protecting the Malaysian auto industry in the first place, and for such a long time.

The purpose of liberalisation is to enable the end consumer to enjoy the best in terms of price, quality and performance. This benefit is available because the consumer is allowed freedom to purchase the best car he can afford at the prices charged by the manufacturer.

Obviously competitive producers will be able to sell their vehicles cheaper than less-competitive manufacturers and thus will be able to gain a price advantage.

Here in Malaysia, we do not enjoy the benefits of the liberalisation that is happening in the Automotive industry worldwide. After being in business for the past 15 years, are Proton cars able to compete effectively in the international markets?

Where else but in Malaysia are Proton cars marketable?

In fact, some personal surveys I have done show that most Malaysians themselves would rather buy foreign cars if the prices were equal. By continuing to protect the local producers Proton and Perodua, the government is encouraging a protectionist mentality for the two companies where they do not find the incentive to work harder to produce better quality vehicles at lower costs.

The continuance of this misguided policy for the sake of national pride only serves to make the costs of living higher for the population of the country as a whole and lowers our standards of living.

The Thai policy of not manufacturing their own national vehicle has proven a better choice, whereby they have succeeded in drawing billions of dollars in investment from big vehicle manufacturers like Toyota, Ford and GM to build plants there.

After AFTA in 2005, it is Thailand (and not Malaysia) who will be earning big money exporting vehicles to the region and being known as the vehicle production capital of Asean.

Liberalisation is inevitable. With respect to the auto industry, we may have made a mistake in pushing national pride and protecting our own local companies.

Other sectors or the Malaysian economy have had to make 'sacrifices' due to our need to postpone liberalising the auto industry another two years.

However, we should not continue perpetuating this error in judgment by making more errors.

Already there are rumours of non-tariff protection for Proton and Perodua after 2005 to help keep prices of imported vehicles higher and ensure that their market share is maintained. For the sake of ordinary Malaysians, I most sincerely hope that this does not happen.