KUALA LUMPUR: Perusahaan Otomobil Kedua Sdn Bhd (Perodua) hopes the government will consider including special incentives for first time national vehicle buyers in the upcoming Budget 2017.
President/chief executive officer Datuk Dr Aminar Rashid Salleh said the move is to further spur consumer spending. He cited as an example, a reduction in the amount required as down payment.
“This will have a domino effect on the entire automotive ecosystem, as well as the financial and insurance industry, given the sluggish economy in the near term,” he told Bernama.
Aminar mentioned that Perodua’s specific wish list includes continuing with the current National Automotive Policy roadmap in liberalising the market.
“However, it should be done on a staggered basis to ensure local vendors have sufficient time to improve competencies and capabilities to compete fairly.
“This is also to ensure that investments of automotive players are not jeopardised,” he said.
He said Perodua also hoped the government continues to support the local automotive industry, similar to other developed countries as Germany, South Korea, Japan and even the United States, in terms of incentives.
“This will encourage manufacturing activities, while improving vendors’ and original equipment manufacturers’ capabilities. At the same time, it helps promote exports within the automotive ecosystem.
“The government should also consider loosening the procurement policy to allow Perodua to be included as an option for government bulk vehicle purchases. This will create greater options and value for the government at a time when it needs to get the best value on items purchased,” Aminar said.
He said a reduction in the overnight policy rate (OPR) would have a positive impact on the overall economy, as banks would reduce lending rates and spur spending.
“While we respect and support the central bank’s stand on the lending guidelines, we also believe that all financial institutions should implement it on a case-to-case basis, rather than have a blanket rule,” he added. — Bernama