Former premier Dr Mahathir Mohamad today expressed concern over the government’s move to reduce the import duty of foreign cars, as this will affect the national car Proton.

“As Proton adviser, the government's action (to reduce) import duty would affect Proton sales,” he said when asked over the reduction in import duty beginning today.

NONE Mahathir, a former finance minister, said the reduction will provide challenges to the local automotive industry, which according to him has had to compete with the foreign car manufacturers.

“It would not kill (the local automotive industry)  but it would create stiffer competition. Local industries need to attain its true potential but for so long Proton is being protected prior to this.

“Now Proton is competing with imported cars based on terms where there is lesser protection,” he said.

Mahathir opined that the excise duty needs to be retained as it contributed to subsidies amounting to US$33 billion annually.

“We must have the money, if not how are we going to give subsidies,” he said in a press conference after delivering a talk on the Malaysia-Japan International Institute of Technology (MJIIT) at Jalan Semarak this afternoon.

NONE Asked to comment on Pakatan Rakyat’s manifesto to reduce car prices, Mahathir said it would result in people purchasing new cars, as a result of their prices being almost the same as used cars in the market.

“Second-hand car dealers would be affected. If they cannot sell second-hand cars, people cannot purchase new cars,” he claimed.

He was commenting on International Trade and Industry Minister Mustapa Mohamed’s announcement today over the reduction in import duty.

Mustapa said the reduction will only affect cars which are fully-imported.

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