MITI: LET AUTOMOTIVE PLAYERS DETERMINE THE MODEL FOR INDUSTRY CONSOLIDATION

KUALA LUMPUR, July 12 (Bernama) -- The Ministry of International Trade and
Industry (MITI) will leave it to the local automative players to determine the
model for the consolidation of their industry.

"The model is up to them. What is important is to ensure that steps are
taken to increase productivity and efficiency as well as reduce production cost
and increase competitivenes of the local automotive industry.

"That's the bottomline," said its minister, Mustapa Mohamed after launching
the Industry Led Automotive Graduate Apprenticeship Programme here Monday.

Mustapa said the consolidation was urgent as there was excess capacity, keen
competition and a need to increase export earnings.

"This is a timely suggestion. We have excess capacity and due to keen
competition in the international market, we have to increase exports and not
just depend on the small domestic market."

At the Proton's 25th Anniversary Gala Dinner last Friday, Prime Minister
Najib Razak called on local automotive companies to consider merging if there
was overcapacity in the industry.

Mustapa disclosed that the parties concerned have begun discussions.

He also said he had been briefed on the situation and what was important now
was the implementation.

"It makes good sense. If the companies cooperate, there are many things
that can be shared and this can be cost saving," he added.

On the pace of consolidation, he said companies should talk to each other
and that the government strongly encouraged it.

Meanwhile, in his speech at the launching of the apprenticeship programme,
he said many industrialists believed that the issue of unemployment arose due to
a mismatch between market requirements and the graduates produced by the local
institutes of higher learning.

Many graduates are not ready for employment as they do not possess the
necessary skills to immediately perform their work.

Under the course, students will spend only three days in a week in the
classroom acquiring theoritical knowledge, while the balance two days will be
spent in acquiring industry related knowledge.

Mustapa also suggested that the programme model be used in other sectors.
-- BERNAMA