The creation of a third national car brand has been a subject of great controversy, and that’s quite understating it. According to Berita Harian, distinguished economist Professor Jomo Kwame Sundaram (a member of the Malaysian Council of Eminent Persons) said starting the project would require thorough and proper consideration, especially if it were to be seen as a move to ramp up the Malaysian industrial sector.

He added that the suggestion could help the government prove its commitment to stimulate the local industrial sector to a level that’s more advanced and high-tech than before. This is despite acknowledging the fact that it has once gone through an investment failure in heavy industries.

In June, prime minister Tun Dr Mahathir Mohamad mooted the aspiration to build another national car project (unofficially nicknamed ‘Perotiga’, presumably short for Perusahaan Otomobil Ketiga), during his visit to the 24th Nikkei Conference in Japan. It has since been a topic of massive public debacle, particularly on social media platforms, because the project does not ‘coincide’ with the progress made in the automotive industry.

“We need to consider the prime minister’s suggestions to further the commitment in developing a more advanced industry in the country. For example, Geely needed to be ‘persuaded’ to work with Proton in order to transform the country into a global export hub for its mid-sized vehicles,” said Jomo.

“The [Proton-Geely] tie-up will, at the same time, help Mahathir realise his wish to build an electric car, an idea he first spoke of in the 1990s. The project will contribute globally, by way of tackling global warming and air pollution caused by the burning of fuels,” he told reporters.

Besides that, the BH report also said that an electric vehicle doesn’t require a conventional internal combustion engine, which proved to be the final hurdle in the advancement of Malaysian-made cars for the past few decades.

“The world has changed and it is now a priority to consider our capabilities and competitiveness on the global stage for the future. Malaysians tend to value investments that contribute to the development of the country, such as 5G telecommunications tech, smartphone app development, fintech, renewable energy, and electric vehicles,” explained Jomo.

Also, the new government is leaning more towards investing in industries that are productive, and the Mahathir-led coalition is committed to accelerate technological advancements in Malaysia.

Speaking on the matter, Malaysian Automotive Association (MAA) president, Datuk Aishah Ahmad was quoted as saying “Malaysia doesn’t need another national car, seeing as the automotive industry of the country is currently thriving. Also, on its economy of scale, the market for national cars is considered small.”

She also said the Malaysian automotive industry is growing fast, with over 500 local vendors to provide industry needs from the supply side of things. “Compared to other ASEAN countries such as Thailand and Indonesia, both countries have no national car, but their respective auto industries are growing strongly,” she added.

As a refresher, Mahathir said Malaysia has the ability and capacity to produce good quality cars which are saleable across the world market. “We may have to depend on foreign technology and partners at the beginning, but eventually we hope to be able to do everything by ourselves.

“In the automotive field after we started work with Mitsubishi, today Malaysians have the capacity to do almost 100% of the development of a motor vehicle. That is the benefit we have obtained by having foreign partners,” he stated.

Of course, not many responded well to his ambition. Two weeks ago, Mahathir said “it’s OK, just forget Vision 2020” because he was told that “no one wants to see a second national car. It’s enough that we have Proton, which is seen as a failure.” In any case, there are no plans for the government to buy back Proton, and funding for the new national car, should it be conceived, will be backed by the private sector instead.

So, which side of the divide do you belong? Find out what we think on the matter, here. As usual, leave your thoughts below, but let’s be a bit more civil with this one, shall we?