KUALA LUMPUR: Automotive industry players will meet Bank Negara Malaysia on Friday to discuss the new guidelines for loan borrowers, following the 25 per cent drop in sales of new motor vehicles last month, says Proton.
The guidelines have been in force since Jan 1.
The Proton Edar Dealers Association Malaysia has called for the new responsible financing guidelines to be reviewed, as it said the guidelines have eroded sales with only 30 per cent of applicants qualified to secure loans in the first two months of the year.
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| Zainal Abidin |
The Malaysian Automotive Association has reported a 25 per cent drop in sales of new motor vehicles last month, attributing it to a short working month the continuing impact of Thailand's flood disaster and the restrictions on hire purchase.
"This Friday, we will meet Bank Negara to seek a review of guidelines. It is not just Proton or Perodua but the industry as a whole that is facing difficulties," said Proton group managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir after the "Proton-Yes First 4G Internet Cars" partnership deal today.
"Let us discuss how we can mitigate this, as the long-term impact will be quite big."
He also said the matter had to be taken seriously as the entire industry eco-system would be severely affected in the long-term if not resolved soon.
"The automotive industry is linked to the country's economic growth.
"We understand the move is in line with the government and Bank Negara's intention to control household debt and we agree with it.
"But if this continues, it's not good for everybody."
Zainal Abidin said it was important for the industry to be sustainable as well as to grow in the face of a soft economic climate.
-Bernama