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November 03, 2009 19:44 PM
Malaysia's Motorcycle Industry Hit By Economic Crisis, Says Mustapa
PETALING JAYA, Nov 3 (Bernama) -- Malaysia, a small market for motorcycles, is also affected by the global downturn in the industry, said Minister of International Trade and Industry Datuk Mustapa Mohamed.
Production of motorcycles in the first three quarters of 2009 dwindled by 21.7 per cent to 326,584 units compared with 417,051 units manufactured in the same period last year, he said.
" Sales also declined by 21.4 per cent in the same period to 325,818 in 2009 from 414,445 units in 2008," he said at the launch of a new Kawasaki model "KLX 150S" priced at RM8,589.
Going forward, Mustapa said, in an effort towards enhancing development of the domestic automotive industry more effectively, the industry will be further liberalised from Jan 1, 2010 through issuance of Manufacturing Licence for selected segments without imposing any equity condition.
This includes production of motorcycles with 200cc and above engine capacity, he said.
" As the government makes a lot of effort to further boost the industry, the industry should also play its role effectively by focusing and making more investment in research and development programmes.
" A top priority is to promote higher value-added activities," he said.
This will also help motorcycle parts and component manufacturers to upgrade their product quality, capabilities and services as well as help increase the percentage of components sourced locally, the minister said.
Through the revised National Automotive Policy (NAP), the government provides support to domestic industries through the continuation of the Automotive Development Fund and Industry Adjustment Fund.
" Therefore, it is vital that while the government undertakes measures to spur development of the automotive industry, industry players themselves need to be more aggressive and pro-active in efforts to ensure they remain competitive and resilient as well as to be creative and innovative in seeking opportunities derived from the current economic situation," he added.
-- BERNAMA
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