KL's motor vehicle output up

KL's motor vehicle output up

KUALA LUMPUR (AFP): Malaysia revved up a 195 percent increase
in output of motor vehicles in the first half year, but made no
significant progress in the development of engineering and
design, a minister said yesterday.

"Already the industry has made great strides, it has not
achieved significant progress in the development of local
engineering and design capabilities," International Trade and
Industry Minister Rafidah Aziz said.

Production of motor vehicles rose to 650,228 units from
220,090 in the same period a year earlier, 75 percent of which
comprised the two national Proton and Perodua cars, which still
use substantial Japanese technology.

The Proton was launched 10 years ago as a joint venture
between Malaysia's HICOM Holdings Bhd. and Japan's Mitsubishi
group, while Perodua rolled off last year as a joint venture
among Malaysian parties and Japan's Daihatsu and Mitsui.

About 2.8 billion ringgit (US$1.12 billion), or more than 50
percent of the total of 5.4 billion ringgit approved investments
for the transport industry in the last four years came from
foreign investments, with the remaining from local sources.

Malaysia's automotive industry is still dependent on foreign
technology for critical areas, such as engine, transmission,
electronic control devices and precision parts, Rafidah said.