PROTON VENDORS SEE BENEFITS IN MALAYSIA-AUSTRALIA COOPERATION IN AUTO INDUSTRY

KUALA LUMPUR, Nov 9 (Bernama) -- A collaboration between Proton Bhd and an
Australia motor counterpart may be established to produce Malaysia-Australia
cars, says President of Proton Vendor Association Dr Wan Mohamed Wan Embong
Tuesday.

"I'm encouraging Proton and Australia to look into this. We could also establish
Malaysia-Australia Motor Cooperation, where vendors can also link together," he
said.

Under the cooperation, Wan Mohamed said Australia could use Malaysia as a base
to produce the cars, where the production cost was cheaper compared to that
country.

"We can produce the car and they can improve (on it)," he said.

Involved in the development of the automotive industry for more than 100 years,
Australia is world renowned for design and manufacture of quality parts of
passenger, off-road and business customers.

The country also provides a highly-skilled workforce and excellent
automotive research and development facilities.

"Australia has enough brains and technologies that could be used to compete.

"It will be a platform sharing between both countries to capture the regional
market first and then we can go global," he said at the signing of a memorandum
of understanding between Australian Federation of Automotive Parts Manufacturers
(FAPM) with PVA and Malaysian Automotive Component Parts Manufacturers'
Association Tuesday.

Wan Mohamed said he has been suggesting the establishment of an Asean Motor
Cooperation for many years but somehow there are a lot of differences in each
countries' automotive industry and regulations, especially in the four big Asean
countries -- Malaysia, the Philippines, Thailand and Indonesia.

"If we have this Asean Motor Cooperation, trade barriers between these countries
could be reduced. Vendors in these countries can work together among them. They
should look at original equipment manufacturer (OEM)," he added.

On the MoUs, Wan Mohamed said they are expected to boost trade and
investment opportunities that existed between the two countries.

Speaking at the signing ceremony, FAPM Chief Executive Officer Richard Reilly
said about 10 Australia's leading component producers, technology providers and
R&D organisations are in Malaysia to explore trade, investment and technology
tie-up opportunities with Malaysian automotive companies.

Meanwhile, Tim Dillon Victorian Commissioner for South East Asia based in Kuala
Lumpur said the tie-ups were a logical step, enabling technology transfer and
production efficiencies, while a possible combined production volumes could
create economies of scale for suppliers.

"Both our automotive industries share a similar challenge. Malaysia and
Australian populations are quite small, which means our domestics vehicle
production volumes are low by global standards.

"Given the industry's notoriously low margins and fierce international
competition, the only way for automotive component suppliers to survive is to
continually reduce cost while increasing quality and productivity via adoption
of new technologies.

The other option was to create economies of scale and this could be achieved
through exports, he added.
-- BERNAMA