Is the government providing funds for the third national car?

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Government Not Providing Funds for Third National Car Project

The government will not be injecting government funds into the third national car project, which is intended to be driven by the private sector. While direct financial investment will be withheld, the government plans to offer specific support in the form of licensing and incentives to facilitate the project. This approach aims to encourage private sector leadership and innovation in the automotive industry.
Private Sector-Led Initiative
The third national car project is being conceptualised with a business-to-business approach, placing the primary responsibility and execution in the hands of private entities. This model is currently under scrutiny, with the International Trade and Industry Minister Datuk Darell Leiking indicating that over 20 proposals from the private sector are being reviewed. The final structure and operational framework are still subject to finalisation.
Limited Government Assistance
The government's role will be confined to providing select assistance, specifically concerning licensing and incentives, rather than direct financial contributions. These forms of support are intended to create a conducive environment for private companies to undertake the project. Specific details regarding these licensing and incentive packages will be announced once a final decision on the project's direction is made.
Objectives Beyond Domestic Competition
The initiative for a third national car, championed by Prime Minister Tun Dr Mahathir Mohamad, is not primarily aimed at challenging existing national car manufacturers. Instead, its objectives are to foster opportunities for local innovative talent and to explore new market avenues. The government acknowledges concerns but highlights the potential of the broader Asean market, comprising 640 million people, as a significant area for expansion.
Focus on Regional Market and Components
The envisioned third national car is being designed with the Asean market in mind, incorporating approximately 4,000 components. This strategic focus anticipates potential interest from other Asean countries in participating in the manufacturing of these components. Such collaboration is expected to stimulate a new economic ecosystem within the region, enhancing overall competitiveness and fostering intra-Asean industrial development.

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Is the government providing funds for the third national car?

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