Utama EKONOMI Mahathir has forgotten (pelupa)

Mahathir has forgotten (pelupa)

Dr Mahathir has forgotten (‘pelupa’) that Perwaja failed – and wasted billions of Ringgit.

Kadir Jasin said RM25 BILLION of taxpayers money was wasted on MAS – which has also failed. [1]

Perstima failed – when Coke/Pepsi switched to aluminium cans. I believe the Japanese took over. [2]

Felda has failed – and needs over RM6.0 BILLION taxpayers funds. [3]

MISC almost failed – after that Japanese gas contract came to an end. (At one time I handled the MISC account in the bank.) [4]

Bank Bumi failed. Bailed out FOUR times? Five times? [5]

Proton has been the biggest failure – it dragged on for 30 years, cost billions of taxpayers funds and made generations of Malaysians (especially Malays) poorer. Because we were forced to pay Toyota prices for a local tin sadin car. [6]

Pernas failed – bailed out by Dr M’s good friend. Where is it now? [7]

There are more of these failed government businesses. I cannot remember all (saya pun pelupa). Dear readers you are welcome to add to this list in the comments.

Even with a solid monopoly or oligopoly, most of these government run businesses have failed.

Then Dr Mahathir tried privatisation. Also failed. [8]

Dr Mahathir said (bukan saya cakap tau, jangan marah saya) that all the “hand picked” people he entrusted with running big businesses have ALL failed. Dr Mahathir was referring to all the bumiputra billionaires he tried to create.

Only one has survived but he owes the banks over RM30 Billion hutang.

Quite a few of his businesses are making losses.

His power business now has problems.

If he fails, the banks (which are also government owned) will also fail.

Dr Mahathir has put the entire banking industry at risk – until today.

To make a long story short, government does not know business – despite over 40 years trying to do business.

To make a long story short Tun Dr Mahathir Mohamad does not understand business. Period.

The biggest burden and failure hoisted upon the poor Malaysians, especially the Malays was Proton. Proton was doomed to fail from Day 1. And Proton had a solid monopoly. Proton was protected by high tariffs imposed on imported cars. Proton was protected by the AP system. Still Proton failed.

What does this mean? Apa maksudnya Proton jadi bankrap?

It means this is evidence. Evidence for what?

Evidence that Dr Mahathir does not know business, especially the car business.

For over 30 years now (until today) Proton has been kept afloat by extra sky high prices for cars in Malaysia. Especially imported cars – duties, taxes, excises, etc etc still keep our car prices sky high.

To give you a ‘cheap car’ example – in the USA the Toyota Yaris sells for about RM62,000. This is about THREE MONTHS salary in the USA (Per capita GDP RM266,000).

In Malaysia the same Toyota Yaris sells for up to 30% more than the US price ie between RM72,000 to to RM84,000 – which is also about 14 months salary in Malaysia (per capita GDP RM60,000 which I DO NOT BELIEVE.)

In Japan the Toyota Rush sells for about RM70,000.

But the same Toyota Rush sells here for over RM93,000.

In Malaysia the Perodua Aruz (a rebadged Toyota Rush) sells for RM82,000.

So Malaysians are being cheated again and again – with some of the most exensive car prices in the world. So that the local car manufacturers (Proton, Perodua and now the 3rd car) can be protected.

But here is my prediction – this 3rd car will also fail.

Worse I have a feeling it will not even take off.

Unless the government pumps in taxpayers money.

The 3rd car will fail for exactly the same reason as Proton.

The market is too small. There is not enough volume.

Development costs are too high.

Perodua (Daihatsu) is now facing stiff competition from Proton (Geely).

The Proton X70 is selling well.

Now the new Proton Saga is being launched at RM38,000.

The real kicker in the groin for Perodua is going to be the Proton X50 (??). Geely owns Volvo. The buzz is the X50 will be an almost Volvo rebadge. The engine and chassis will be Volvo. And it will be priced much less than a Volvo.

So Perodua is going to face stiff competition in Malaysia. So do you seriously think that Daihatsu will share technology with the 3rd car so that the 3rd car will then give even more competition for Perodua in Malaysia?

I dont think so.

So may I suggest the Chinese Chery. Or Great Wall.

Or whatever other Chinese car brands.

They may sell some technology.

Car prices, other than monopolies, oligopolies, English based education, no religion in government, freedom of speech, free markets, liberalised banking system, etc etc have been part of my crusade since the 1990s.

I hope Malaysians will wake up. I hope you will all make car prices a serious election issue. Tuan-tuan, Melayu yang miskin dulu. Vested interests, orang kaya, orang yang ada connection jadi kaya dulu. Depa telan duit Tuan-tuan. Kenapa lah tuan-tuan dunggu sangat. Atau ‘dungu’ sangat.

Every time these folks have these strange dreams (I have a dream . . ) it becomes a nightmare for the rest of us.

[1] https://pakdin.my/tag/mas
[2] https://pakdin.my/tag/bijih-timah
[3] https://pakdin.my/tag/tanam-semula
[4] https://www.wsj.com/articles/SB893957144672200500
[5] https://pakdin.my/tag/bmf
[6] https://pakdin.my/tag/proton
[7] https://pakdin.my/the-government-has-no-business-being-in-business
[8] https://pakdin.my/tag/penswastaan

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