Perodua is seeking to have more engagements with regulators prior to the implementation of new guidelines that affect the automotive industry as such discussions will help smoothen the implementation of any new policy.
Perodua Managing Director Datuk Aminar Rashid Salleh said that the recent meeting with Bank Negara Malaysia and industry players had been beneficial as it addressed serious issues regarding the automotive industry as a whole.
“We are committed to support the government’s initiatives, in particular to address the rising household debt, but we would also appreciate it if the government and its regulatory bodies would consult the players to better understand the impact to the industry prior to the implementation of any new initiatives or measures,” Aminar said.
The Malaysian Automotive Association (MAA) reported that January sales have fallen 25% due to the short working month, the impact of the new financing guidelines as well as the parts shortage due to the flood in Thailand.
Aminar said that partly due to the implementation of the new financing guidelines last January, the inventory of vehicles has risen and if left unchecked may need a downward revision to the production planning.
He added that the automotive ecosystem has also been hit as approval time for loans has also lengthened and thereby affecting sales of automotive dealers.
On financial institutions, Aminar said: “We wish to thank the local financing institutions for their strong support in the past and during these trying times and we do hope that they continue with their support by giving a fair as well as due consideration when interpreting the new guidelines set by Bank Negara.”
He said that the new guidelines should be implemented in stages as to allow a soft landing for both the players and consumers to allow prudent, responsible and transparent retail practices.
Aminar said the financing institutions should also take into consideration of the government’s desire to see growth in the industry by increasing competitiveness as well as a better business environment for all, in line with its comments on the soon-to-be announced revised National Automotive Policy.
“We hope that more engagement with the respective stakeholders on this subject matter will take place to ensure that the problems raised are rectified as soon as possible,” Aminar said.