MALAYSIA'S AUTO POLICY REVIEW OUTCOME TO BE ANNOUNCED IN OCT

KUALA LUMPUR, Sept 10 (Bernama) -- The outcome of Malaysia's National
Automotive Policy (NAP) review will be announced next month, International Trade
and Industry Minister, Mustapa Mohamed, said Thursday.

"There are many areas that still need fine-tuning," he told reporters here.

The review findings were supposed to be announced this month.

"We expected to do it this month. We have already started (carrying out
research) and there has been progress but because there are so many issues to be
considered, I think we should be able to announce it by end of October.

"It is a complicated matter. We cannot rush."

Mustapa said discussions were ongoing with related parties including local
industry members as well as foreigners to get the best input.

The review of the NAP is being undertaken to further liberalise the local
automotive sector.

Among others, the NAP review will take into account the present conditions
in the United States where automotive companies are facing severe depression, he
said.

"This year there has also been a drop in demand for local cars from
overseas," he said.

Under the new NAP, Malaysia will also be positioned to increase its
competitiveness in component manufacturing.

"At the same time, we want to increase the export of our cars considering
that our market is quite small."

The export of local cars currently stand at 20,000 units a year and this is
a very small figure, he said.

On Malaysia's drop by 25 notch to 85th position in the global
competitiveness rating, Mustapa said the government was looking seriously into
the matter.

"Efforts are being taken to recover the situation especially in the
securities field," he said.

The World Economic Forum Competitiveness Report for 2009-2010, released on
Tuesday, said that security was a major concern in Malaysia.

The business community said that the potential for violence in Malaysia
stood at the 97th place and crime at 95th, both of which are expected to
significantly increase cost of production.
-- BERNAMA