No gov’t bailout if new national car fails, says MITI


The ministry of international trade and industry (MITI) says that the government will not provide any financial support for the new national car. According to Datuk Darell Leiking, there will be no bailout for anchor company DreamEdge should the project not succeed, Bernama reports.

He said that this is because the project is a private initiative, not one carried out by the government. “We are just supporting the ecosystem and this is the way forward. If it fails, that is management failure, product failure. But in this case, the product is clear and they are able to work with Japanese technology and are confident of it. So why should we kill it?” he said.

He added that DreamEdge has given its assurance that it will not seek government funding. “That is why we supported the project, to tell people that we have our trust in this company, just like in many other companies that we trust in doing business today. If they ask for money, we will not support it,” he said.

Asked on why the project is being deemed a national car when it is a private initiative, he explained that under the proposed National Automotive Policy (NAP) revision, national cars are now defined as those built in Malaysia by a Malaysian company that employs 90% or more Malaysians.

“We are working to make sure people are benefiting from the private initiatives, jobs are created and new technology is developed. Under our watch, we will not give out incentives easily such as tax incentives, unless the companies qualify for it, whether it is domestic or internationally owned,” he explained.

Last week, it was announced that DreamEdge, a Cyberjaya-based innovation and digital engineering services company, will be the lead company for the new national car, which is expected to be make its market debut in March 2021. The as-yet-unnamed model will be a plus-sized B-segment sedan (initially mentioned as C-segment, and later corrected) equipped with a regular ICE or hybrid powertrain, and will be built via contract manufacturing.


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