By Sharen Kaur
sharen@nstp.com.my
Published in NST on March 25, 2013
MELBOURNE: The Federation of Automotive Products Manufacturers (FAPM) in Australia hopes that local carmakers could start to sell cars like the Falcon, Territory, Cruze and Commodore in Malaysia once the Malaysia-Australia Free Trade Agreement (Mafta) takes effect this year.
Its president, Jim Griffin, said while Mafta opens business opportunities for both countries, there are technical roadblocks for Australia companies to sell cars in Malaysia.
"We want to do business with Malaysia and establish business relationships with players there. This will allow Australian car companies and component makers better allowance and opportunity to export their products to Malaysia.
"With Mafta, Proton and Perodua can come into Australia with zero per cent tax. Australian-made cars going into Malaysia may be duty-free but they would be subjected to excise tax there. So, there is still a hindrance," Griffin told Business Times at the Automotive Show here last week.
Falcon and Territory are manufactured by Ford Australia while GM Holden Ltd builds the Cruze and Commodore.
Griffin said there is demand for the cars internationally and if they could be exported to Malaysia, it would stimulate both the automotive and car component sectors in Australia.
Griffin said what the Australian automotive components industry wants is for its customers, the Australian carmakers, to have the real underlying opportunities to increase their production base by also selling cars in Malaysia.
This, he said, would indirectly benefit the currently more than 100 automotive component makers in the country.
Vehicle production in Australia last year stood at 231,000 units while this year, it is forecast to drop to around 205,000. Malaysia's production is about 600,000.
"We are no threat to Malaysia's automotive industry.
"We can be a partner to Malaysia. What the components industry wants is to see an increase in locally produced cars being exported overseas," Griffin said.
Trade between Malaysia and Australia grew by 11.1 per cent to RM38.49 billion in 2011 from RM34.2 billion in 2010. Exports to Australia in 2011 totalled RM25.68 billion and imports amounted to RM12.81 billion.
sharen@nstp.com.my
Published in NST on March 25, 2013
MELBOURNE: The Federation of Automotive Products Manufacturers (FAPM) in Australia hopes that local carmakers could start to sell cars like the Falcon, Territory, Cruze and Commodore in Malaysia once the Malaysia-Australia Free Trade Agreement (Mafta) takes effect this year.
Its president, Jim Griffin, said while Mafta opens business opportunities for both countries, there are technical roadblocks for Australia companies to sell cars in Malaysia.
"We want to do business with Malaysia and establish business relationships with players there. This will allow Australian car companies and component makers better allowance and opportunity to export their products to Malaysia.
"With Mafta, Proton and Perodua can come into Australia with zero per cent tax. Australian-made cars going into Malaysia may be duty-free but they would be subjected to excise tax there. So, there is still a hindrance," Griffin told Business Times at the Automotive Show here last week.
Falcon and Territory are manufactured by Ford Australia while GM Holden Ltd builds the Cruze and Commodore.
Griffin said there is demand for the cars internationally and if they could be exported to Malaysia, it would stimulate both the automotive and car component sectors in Australia.
Griffin said what the Australian automotive components industry wants is for its customers, the Australian carmakers, to have the real underlying opportunities to increase their production base by also selling cars in Malaysia.
This, he said, would indirectly benefit the currently more than 100 automotive component makers in the country.
Vehicle production in Australia last year stood at 231,000 units while this year, it is forecast to drop to around 205,000. Malaysia's production is about 600,000.
"We are no threat to Malaysia's automotive industry.
"We can be a partner to Malaysia. What the components industry wants is to see an increase in locally produced cars being exported overseas," Griffin said.
Trade between Malaysia and Australia grew by 11.1 per cent to RM38.49 billion in 2011 from RM34.2 billion in 2010. Exports to Australia in 2011 totalled RM25.68 billion and imports amounted to RM12.81 billion.
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