While international car manufacturers are pushing for the liberalisation of the automobile industry under the Asean Free Trade Agreement (Afta), the Malaysian government appears to be hesitant.

According to Deputy Minister of International Trade and Industry Kerk Choo Ting today, the government cannot open up the auto industry without giving due consideration to those involved in the national car industry.

We are still looking for the right time to liberalise the market, he said, adding that it should be a gradual process.

For health, you cannot grow fat or become thin immediately, stressed Kerk to reporters after attending a conference titled National Conference on Competing after Afta: Challenges and Opportunities organised by the Asian Strategy and Leadership Institute in Kuala Lumpur.

However, the deputy minister said the government will eventually open up the auto industry as Malaysia has already offered 96.6 percent of its products for tariff concession under Afta.

Under the agreement, import tariffs will be reduced to a maximum of five percent by 2003 in most of the Asean countries.

Malaysia, however, managed to get a two-year reprieve for its auto industry. This will provide national car manufacturers Proton and Perodua — which are protected by high tariffs on imported cars — with more time to prepare for the liberalisation.

Review decision

Meanwhile, international vehicle manufacturer Ford Motor Corporation urged the Malaysian government to review its decision to delay the opening up of its market.

The way we feel is that Malaysia is part of Afta and should not be delaying it, said Ford Malaysia Sdn Bhd director of corporate affairs Aishah Ahmad.

She revealed that in Malaysia, the tariffs would drop to 20 percent in 2005 and gradually to five percent only in 2008.

Aishah said when the North American Free Trade Agreement was implemented, there was a lot of uncertainty but it turned out to be successful.

Besides arguing that gradual liberalisation will see local car manufacturers learning to compete with international manufactures, she said lower car prices will also make consumers happy.

At the end of the day, everyone will benefit from it, she added.