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.