Sunday, August 22, 2010

Operator is expected to report the case of revision of policies or the automobile industry ‧ equity restrictions relaxed

Troubles for a long time opening up the domestic auto industry is expected to dispute the case in 2010, considered "issued", analysts believe that concerns about the protection under a domestic vehicle sales suggest a completely open, but limited equity cooperative or tied off, and allow foreign cars corporate strategy with the local car assembly partners.

Material integrated auto parts supplier and distribution networks

Even if these expectations come to nothing, cities have also optimistic the government will switch to integrated auto parts supplier and distribution networks, seek to lower the domestic car business more efficient way to deal with future challenges.

Trade and Industry Minister Datuk Mustapa Mohamed Thursday (Sept. 10) that the national automotive policy review will probably be announced until October, as there are many fields need to be adjusted. Policy review scheduled in September baked.

City, Prime Minister and Finance Minister Najib Razak will be measured in the October 23 count case of the 2010 amendment to the national auto policy announced (NAP) content.

OSK research analyst Emomafu believe that the new administration over the past few months as far as opening up competition in the domestic automotive domain program "about right", including the opening direction to allow foreign car companies and local assembly become strategic partners, and co-operation may involve equity.

"As the VW (Volkswagen) and General Motors (General Motor) plans to play for the automotive manufacturing center in Malaysia, is conducive to stimulate domestic economic hub, the government may limit cooperation with foreign investors looking forward to changes . "

He pointed out that the demand for foreign partners to a very important strategy in addition to adjustable targets and monitoring technology to achieve sharing, to prevent any form of intellectual property infringement. However, if the local partner can successfully form an alliance with foreign capital, will be shared through technology to improve their cars competitive, and to share resources and achieve cost efficiency, economy.

If the relaxation can bring parts industry

City, was recently rumored that VW may be in the coming months in Kuala Lumpur in an auto parts sourcing center, now with several local car companies such as Proton, multi-resource industries (DRBHCOM, 1619, board of industrial products group) and some local parts manufacturing companies to discuss cooperation plans to expand the loading rate of 40% of the local rental.

"If the government relaxed restrictions on foreign investment negotiations, in addition to the industry by, it can promote the local parts industry such as British martyr (INGRESS, 7112, board of industrial products group), EP system (EPMB, 7773, board of industrial products group ) with TSM Global (TSM, 8842, board and trade services group) performance of growth. "

In addition, he considered that the Government would put Proton (PROTON, 5304, board of consumer goods group) changes the future development advantages as a major consideration. If continuing to open up competition, may be compressed Proton local market share, and finally over the past few months, made from the second car (Perodua) away advantage.

Proton material open and cooperative relations strategy

"If the Government hopes to continue to maintain Proton market share is expected to remain with the spread of foreign cars, import cars in this city look forward to reducing the domestic tax should be wishful thinking did not turn out."

However, he prefers the Government may open Proton strategic partnership, "platform equally shared" mode, so that Proton can interoperate with each other and foreign resources, indirectly, from partner Gong allow Proton to enter a foreign market.

Nevertheless, as the Government has not yet issued a revised Foreign suggested that this Emomafu real economic benefits which can not be assessed. However, he prefers to be integrated automobile manufacturing industry, especially the low-end tier auto parts manufacturing business may be integrated to address the ever-present "adequate" problem.

Is not expected to significantly open

Kenner analyst who asked not to be named, said that the recent results to the city to get an industry, most do not think the Government will substantially open the auto industry to survive still suffer the pressure of local cars.

"Car license (AP) issue expected to continue stalemate, not expressly amend the draft. Although I believe the government will gradually relax the auto industry, but the material will be a gradual process, in particular, the domestic auto industry still can not get rid of stress, in order to protect local the interests of the automotive industry, the Government will not fully open the door competition. "

She believes that even if the Government to open restricted stock cooperative, limited stock is still expected to sell no more than 50%. "Because of the wide issue of shares involved, including the introduction of the directors may take the opportunity to interfere in the direction of business operations, the government should try not to touch this piece of sensitive issues, even if there will be many restrictions on open shares."

However, she optimistic about domestic sales will be integrated with the parts distribution network, for this long outstanding matter is the government, the not involve foreign investment, while economic nascent recovery O'clock this whole reasonable.

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