PARLIAMENT Proton Holdings Bhd and Perusahaan Automobil Kedua Sdn Bhd (Perodua) still have the ablity to overcome competition, while both companies have drawn up plans to enhance production.

International Trade and Industry Minister Mustapa Mohamed said Proton by 2018, plans to increase exports to 50 percent of cars produced in the country.

For Perodua, he said comprehensive training was being given to its staff, to reduce production costs.

“There is very strong competition in the country and the local manufacturers have accepted change and are making many changes of their own, alongside improvements to enable them to compete with other brands,” he added.

Mustapa said this when answering a supplementary question from Noraini Ahmad (BN-Parit Sulong) in the Dewan Rakyat today, on the impact of the competition between Proton and Perodua, as well as from foreign car manufacturers.

Earlier, in response to Noraini’s original question on the proposal in 2010 to merge Proton and Perodua, Mustapa said the government could not force the two companies to do so.

However, he added, the companies were being encouraged to forge new and strategic cooperation, alongside improving the efficiency of vendors supplying component parts for their cars.

According to Mustapa, vendors played an important role in the production of quality components at competitive prices, and this will enable the two automotive companies to effectively compete and improve production.

Meanwhile, he said the government had also had lots of discussions with stakeholders to ensure the country had a solid National Automotive Policy.

“By year-end, it can be expected that we will have a policy that is good for enhancing the efficiency of the automotive industry. We want our companies to  advance and compete from the aspect of price and quality,” Mustapa added.

- Bernama