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Friday, November 1, 2013

Naza World laments lack of provisions for auto industry in budget

Posted on 25 October 2013 - 10:38pm
Last updated on 25 October 2013 - 10:56pm

PETALING JAYA (Oct 25, 2013): Naza World, which is run by Datuk SM Faisal SM Nasimuddin, expressed surprise at having the automobile sector left out for two years in a row, in a statement released after the Budget 2014 announcement today.

"The hybrid tax break would have given car makers and importers a chance to reach that critical mass of energy efficient vehicle (EEV) sales to trigger local manufacturing. Hybrid cars could pave the way to the next generation of EEV technology and Malaysia should continue to position ourselves as receptive to new EEV technologies," Naza World said.

It classified EEVs as a sunrise technology and could well be the game changer for the local automotive industry.

"Perhaps (this is) something to consider next (time)," Naza World said.

Globally, the industry itself is at the tipping point of change as oil prices soar progressively and more environmentally friendly alternatives become an urgent need, no longer a luxury.

"This is a niche that Malaysia can capitalize on to become a hub for the development and manufacture of energy efficient vehicles and components including the infrastructure of charging stations, a crucial element in this scenario," the company said.

Commenting on the overall budget, Naza World called it a strategic and fiscally responsible budget aimed at long term benefits that also looks into the welfare of the people, in particular the lower income group.

"This is crucial at this juncture as the health of the government's financial position would determine the country's immediate sovereign rating," it said.

The company deems the careful implementation of the goods and services tax (GST) coupled with 1% to 3% reduction of tax provision as a step in the right direction because despite the GST in 2015, the move will promote spending.

It is good that essential food, water, the first 200 units of electricity, education, transportation, health care, S&P for houses and selected government services like passport are not laden with GST.

"The GST, implemented with care, is akin to preventive medicine, it might be a bitter pill to swallow for now but necessary to ensure our overall financial health," Naza World said.

The company added that it is happy with the government's continued support to local business and corporations to help enhance competitiveness and entrepreneurship.

"Right on the heels of the Global Entrepreneurship Summit 2013, the government shows serious commitment to enhance the entrepreneurial ecosystem for the younger entrepreneurs, start-ups including new graduates with the setting up of the National Entrepreneurial Development Office.

"At the same time, the support for credible Bumiputera companies with merit in the form of EkuiBumi are measures to bring greater participation in Bursa Malaysia and are well-placed to ensure economic equality," Naza World said.

Naza World also welcomes measures to encourage advanced green technology with the setting up of the Yayasan Hijau Malaysia.

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