2009 Annual Report - ChartNexus

Chairman’s Statement
44
Moving forward, MAA has forecasted a decrease in TIV to 480,000 for 2009 or a 12.4%
decline, with passenger car TIV also estimated to shrink to 436,800 or a drop of 12.2% over
2008. Although cautious, the forecast is well founded on the current global financial and
economic climate, reiterated by the contraction of GDP growth. Other factors that might
negatively impact car sales are the drastically fluctuating oil and commodity prices as well
as unfavourable FOREX rates.
Be that as it may, we are grateful for the Government’s recent announcement in March 2009
recognising the automotive sector as being among the major industries with potential for
further development, in light of its contribution to the growth of the nation. As part of the
Second Stimulus Package, the Government was cognisant of the less than encouraging sales
performance in the automotive industry, particularly in the second half of the year under
review, with many companies in the automotive eco-system facing difficulties. In view of
this, the Government generously allocated an additional RM200 million to the Automotive
Development Fund to continue supporting the development of the automotive industry,
in particular the vendor community, as well as to establish the Automotive Institute of
Malaysia.
PROTON at Hari Peneroka, Felda Maokil.
To further underline its commitment to the sustainability of the industry, the Government,
in a joint effort with the private sector, agreed to assist with the auto-scrapping scheme
for PROTON and PERODUA. Under the scheme, a discount of RM5,000 will be given to
car owners who trade in their cars of any make which are at least 10 years old for the
purchase of new cars. The Government will finance part of the discount borne by PROTON
or PERODUA. This scheme is intended to stimulate car sales as well as increase the safety and
roadworthiness of the vehicles currently on the road, whilst reducing carbon emissions.
Additionally, PROTON remained true to its philosophy of producing the right car at the right
time, price and market, in our aspiration to become a regionally competitive automotive