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          PAS : KE ARAH PEMERINTAHAN ISLAM YANG ADIL
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Harga kereta akan tetap tinggi di Malaysia berbanding
negara lain. Rafidah Aziz Gembira.

berita penuh.


------



Malaysia happy with ASEAN's extension on car tariffs 

KUALA LUMPUR, May 3 (AFP) - Malaysia's International Trade
and Industry Minister praised her Southeast Asian
colleagues Wednesday for giving the national carmaker extra
time to gear up for competition.
"We are happy with the decision," said Rafidah Aziz, who
won the concession Monday at a meeting in Yangon of trade
ministers from the Association of Southeast Asian Nations
(ASEAN).

The ASEAN ministers agreed to Malaysia's request for a
two-year extension of a deadline for tariff cuts on its
cars under the ASEAN Free Trade Area (AFTA), due to come
into force in 2003.

Rafidah said Malaysian carmaker Proton was well aware that
it would face stiff competition when high tariffs on
imported cars are removed by January 

She said the Proton second carmaker Perodua, as well as
assemblers and manufacturers had been consulted before the
deferment was sought.

"In five years, all the car manufacturers and assemblers in
ASEAN would have common import duties to face in each
country they are operating."

She said ASEAN senior officials were working on how to
structure the exemption as there was currently no such
provision for this.

"This is the first time that there has been a modification
made on any concession under the agreement," Rafidah said.

She said the move did not mean that ASEAN was
"backtracking."

"Far from it, it is just that ASEAN is very realistic about
this...it is a reflection of ASEAN's very pragmatic
approach towards AFTA."

Some analysts say Malaysia is keen to protect Proton
against competition from its neighbours, especially
Thailand, which has become a regional hub for carmakers
from Japan, Europe and the United States. 

Proton, founded in 1983 as part of Malaysia's push into
heavy industry, is protected by high tariffs on imported
cars. More than 65 percent of cars sold in Malaysia are
Protons.

ASEAN's most developed countries -- Brunei, Indonesia,
Malaysia, the Philippines, Singapore and Thailand -- have
agreed to cut tariffs to between zero and five percent on
most products under the accelerated AFTA scheme.

Less-developed Cambodia, Laos, Myanmar and Vietnam have
more time to meet the targets.





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