Proton can compete during AFTA

Proton can compete during AFTA

KUALA LUMPUR: Malaysia's first national car manufacturer Perusahaan Otomobil Nasional Bhd. will be able to compete when the local car market is opened to competition under the ASEAN Free Trade Area (AFTA), Bernama reported Tuesday.

The government-owned news agency quoted Malaysia's International Trade and Industry Minister Rafidah Aziz as saying the Proton had told her ministry it's ready to compete and that it has carried out all the necessary internal restructuring, changes and adjustments required.

Rafidah said Proton's parts suppliers are also well equipped to compete.

She noted that Proton executives are part of Malaysia's negotiation team for AFTA and they had given input on how the local automotive market should be opened up.

Under the AFTA plan, regional tariffs on motor vehicle imports among member states will fall to between zero and 5 percent this year. ASEAN members had already agreed that Malaysia doesn't need to apply the rules to the car market until 2005. -- Dow Jones