Proton asks for more protection: Report

Proton asks for more protection: Report

Agence France-Presse, Kuala Lumpur

Malaysia's national carmaker Proton has asked the government
for 20 additional years of tariff protection, it was reported on
Thursday.

Proton chief executive Mahaleel Ariff made the request in a
letter to Prime Minister Abdullah Ahmad Badawi last month, the
Asian Wall Street Journal said, citing industry sources.

Mahaleel also requested immediate exemption from all import
duties and excise taxes, and asked for government grants for
research and development, the newspaper said, adding the
government had not yet responded.

Under the ASEAN Free Trade Area (AFTA) agreement aimed at
liberalizing the auto sector, tariffs on imported cars in
Southeast Asia fell below five percent in January but Malaysia
has obtained a reprieve for its auto industry until 2005.

Nevertheless, the government proposed during the 2004 Budget
in September to impose excise duties on imported cars when the
import duties on these vehicles are reduced from January 1, 2004.

Critics said the move was aimed at evading AFTA and protecting
Proton, which is already feeling the heat. Sales dropped 10
percent last year to 239,783 and further in the first half this
year.