http://news.xinhuanet.com/english/2005-04/04/content_2782463.htm Malaysia to export more cars this year www.chinaview.cn 2005-04-04 02:50:25 KUALA LUMPUR, April 3 (Xinhuanet) -- Proton, Malaysia national carmaker, would boost its exports this year in view of the new line-up of improved products, its chief executive officer Tengku Mahaleel Ariff said Sunday. Now the quality of Proton cars had improved tremendously, especially in terms of customer satisfaction as confirmed by J.D. Power, a company tracking developments in the automobile industry,Tengku Mahaleel told reporters here. The national car maker was scheduled to introduce the Tiara Replacement Model (TRM) and Satria Replacement Model (SRM) later this year while a sports car was also in the offing, he said. "We are ready to sell more abroad," he added. Proton was expected to chalk up 16,000 units of export sales inthe financial ended March 31, 2005, its second highest export volume after the record of 27,000 units in the 1997, he said. "We would have nine global plants, including the plants in Malaysia," he said, adding that this would propel Proton into becoming a global car manufacturer from just a merely assembler in1985. With oil money and foreign technology, Malaysia has made good headway in developing its national automobile industry. Proton, established in 1985 as part of Malaysia's industrialization program, has manufactured six models of passenger cars and now hasan annual production capacity of some 700,000 units. Enditem http://news.xinhuanet.com/english/2005-04/06/content_2792500.htm Ports ride on global shipping boom www.chinaview.cn 2005-04-06 09:54:25 BEIJING, April 6 -- Robust China trade is prolonging an upcycle in the global shipping sector, benefiting mainland ports and related firms queueing up for initial public offerings (IPOs) to raise billions of dollars for new berths and towering loading cranes. Fears that huge investment plans would create overcapacity at mainland ports have so far proved unfounded, although analysts point to risks of a global economic slowdown and port congestion on the U.S. West Coast and Europe as potential hazards. For now though, the boom for ports continues as China sucks in vast amounts of raw materials and energy to power its economy. The lapsing of U.S. textile quotas at the start of the year has also led to a surge in Chinese clothing exports, while shipments of auto parts are also rising quickly. "The transportation cycle is more durable than we thought, especially for shipping companies. We think the uptrend will last longer," said Yang Liu, managing director of fund manager of Atlantis Investment. Stocks in Hong Kong-listed shipping firms and port operators have continued to outshine the market in the past nine months, gaining between 40 to 62 percent, versus a 10 percent rise in the Hang Seng Index. The sector's rally has fanned investments and IPO plans. Ports in Shanghai, Xiamen and Dalian all plan IPOs, while rivals in Shenzhen, Ningbo and Qingdao also have big expansion plans. Shanghai, which trails only Hong Kong and Singapore in container throughput, is poised to surpass both as it embarks on a US$12 billion plan to build 52 berths by 2020. Wharf (Holdings) Ltd.'s Modern Terminals Ltd. is spending US$128 million to upgrade its existing berths in the city to boost capacity by 25 percent in Hong Kong. Meanwhile, operators including Singapore and Dubai government port agencies have paid top dollar in recent months to buy into Hong Kong and mainland ports. COSCO Group, the mainland's largest shipping group, is bundling its container shipping operation with its controlling stake in terminal and box leasing firm COSCO Pacific for a Hong Kong IPO it hopes will raise up to US$2 billion by June. Other listing hopefuls include port construction firm China Harbor Engineering, Sinotrans' shipping unit and the State-run port operators in Dalian, Xiamen and Shanghai, which hope to raise more than US$2 billion combined. But stock investors are becoming increasingly picky, looking for bargains after big gains racked up over the past two years. Liu said port operators such as COSCO Pacific Ltd. and China Merchants Holdings (International) looked expensive now. She prefers China Shipping Development and China Shipping Container Lines (CSCL). Some analysts also warn that sea traffic growth on the mainland will slow, pressuring handling charges and cargo rates on expectations of slower world and Chinese economic growth. But Tim Huxley, managing director at ship broker Clarkson Asia Ltd., said industry insiders remained upbeat. "There isn't any immediate sign of slowdown," he said. Global container supply is seen rising more than 12 percent this year and about 15 percent next year, exceeding the estimated demand growth of 10 percent this year and 9.7 percent next year, according to Clarkson. Including Hong Kong, the world's busiest container port by traffic, China handled 83 million twenty-foot equivalent units (TEUs) of container traffic last year, or 23 percent of the world total, according to Morgan Stanley. The Central Government recently lifted its container throughput forecast for mainland ports in 2010 to 130 million TEUs from 110 million previously. Last year, mainland ports handled 60 million TEUs. "Actual growth could probably exceed the forecast," said Fu Yuning, China Merchants chairman. The Transpacific Stabilisation Agreement (TSA), a forum of 13 shippers operating between Asia and the United States, expects container volumes to rise by 10-12 percent this year. (Source: Shenzhen Daily/Agencies) http://www.yomiuri.co.jp/newse/20050406wo11.htm Malaysia FTA hits roadblock over cars Takashi Kikuchi and Hiroyuki Kato / Yomiuri Shimbun Correspondents Negotiations over a free trade agreement between Japan and Malaysia have hit a speed bump over cars, a focal point of the talks, due to Kuala Lumpur's determination to continue protecting its local industry. Malaysia's persistence with its policy shows a clear contrast with Thailand, which is actively seeking foreign investment, including from members of the Association of Southeast Asian Nations. Although Japan and Malaysia plan to push ahead with the negotiations with the aim of reaching a basic agreement by May, the two countries remain far apart. Former Malaysian Prime Minister Mahathir Mohamad spearheaded the country's "national car project" in the 1980s to foster domestic automakers, aiming to make the car industry a key sector of the economy. While the nation's automakers are required to procure most of their parts within the country, they receive favorable tax treatment. The policy is aimed at protecting the Malaysian car market from imported cars or locally made foreign vehicles. Kuala Lumpur has offered up to a 50 percent tax rebate to domestic automakers since 2004, although it applies in principle an equal rate of sales tax on both domestic and imported vehicles. There are two national car manufacturers in the country--Proton and Produa. There have, however, been links with Japanese automakers. Mahathir initially said, "We need to gain technologies from foreign countries." In 1983, Proton was established in alliance with Mitsubishi Motors Corp. Produa, the second national car manufacturer, which mainly focuses on the production of compact cars, was born in 1993 with financial and technological assistance from Japanese automaker Daihatsu Motor Co. === History of high tariffs The Malaysian government has traditionally levied high tariffs on imported cars to protect its domestic industry. Up until 2003, a tariff of up to 300 percent was levied on cars with engines bigger than 3 liters. This increased the cost of importing such vehicles fourfold. In 1993, ASEAN members agreed to cut tariffs on imported cars to 5 percent or less in principle, but Malaysia won an exception, being allowed to cut the tariff rate to 20 percent in 2005 and to between zero and 5 percent in 2008. Although the country has been gradually slashing tariffs since 1994, it introduced a sales tax on imported vehicles instead. Malaysia still taxes cars imported from outside the ASEAN region by up to 300 percent. === Local cars lagging competitors Malaysian cars have been overwhelmed recently by locally made U.S. and European vehicles. In 2004, car sales in the country hit a record high 487,600 units, but market share of the two Malaysian makers fell from about 80 percent to 60 percent. Foreign carmakers have been driving down the Malaysian makers' market share by aggressively selling locally made cars. Protons and Produas also suffer by comparison with foreign vehicles in terms of both price and performance. Proton's flagship 1.6-liter Waja sedan is priced at 1.6 million yen to 1.8 million yen. The price appears reasonable, but not when its poor performance is taken into consideration. Foreign carmakers have been expanding their production in Malaysia. Honda Motor Co.'s 1.7-liter Civic, which it makes in Malaysia, costs as much as 3 million yen when tariffs and sales taxes are added. But despite the price difference, more and more Malaysians are choosing foreign cars, placing priority on brand and performance. In the FTA negotiations with Malaysia, the government has called on Kuala Lumpur to eliminate tariffs and review its favorable tax treatment for domestic cars. However, the Malaysian government appears unwilling to change its policy, saying only, "We'd like to liberalize (the market) gradually." Kuala Lumpur apparently is reluctant to go against the wishes of Mahathir, who is an adviser to Proton. A senior Foreign Ministry official said the Japanese government considered Malaysia's policy to protect its automakers as "the main difficulty" in reaching an economic agreement with the country, with an FTA as its pillar. Countries that undertake FTAs are required to make mutual tariff reductions. As a result, it would be meaningless if the government granted an exception over cars--one of Japan's major exports--and allowed Malaysia to continue its protective measures, which are contrary to trade liberalization. Tokyo, however, is looking for ways to break the deadlock in the FTA negotiations. The government may call on Malaysia to cut tariffs on larger engine cars, offer favorable treatment to Japanese firms that enter the Malaysian market, or seek the elimination of tariffs after a certain period, according to the official. ------------------------ Yahoo! Groups Sponsor --------------------~--> In low income neighborhoods, 84% do not own computers. At Network for Good, help bridge the Digital Divide! http://us.click.yahoo.com/EpW3eD/3MnJAA/cosFAA/GEEolB/TM --------------------------------------------------------------------~-> Bantu Aceh! Klik: http://www.pusatkrisisaceh.or.id Yahoo! 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