Malaysians stall on Proton scheme

Malaysians stall on Proton scheme

MANILA (AFP): Malaysian officials are reluctant to approve an ASEAN Industrial Joint Venture (AIJV) scheme involving the assembly in the Philippines of Malaysian-made Proton cars, a Trade Department official said here yesterday.

Under a 2.19 billion peso (US$84.2 million) scheme covered by the AIJV program, Proton Pilipinas, a Philippine-Malaysian joint venture, will import completely-knocked-down Proton car units for local assembly.

The company will then re-export the assembled cars back to Malaysia for sale, mainly to the Indochinese market.

However, the official, who asked not to be identified, said the Malaysians oppose this scheme since, under the AIJV program, they will have to give close to a 90-percent tariff discount to the cars from the Philippines.

Proton Pilipinas was allowed to assemble Proton cars in the Philippines due to a special amendment to the country's automotive industry regulations, opening it to projects that fall under the AIJV program.

The AIJV program calls for special trade and tariff concessions being extended to industrial ventures between the member-countries of the Association of Southeast Asian Nations (ASEAN).

ASEAN groups Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand.