Honda, Toyota resume ops in M’sia after lobbying: report

KUALA LUMPUR – Japanese automakers Honda Motor Company Ltd and Toyota Motor Corp have resumed operations in Malaysia after “the government changed its mind” and updated its list of essential businesses allowed to operate during the reintroduction of the movement control order (MCO 2.0) this year.

Nikkei Asia reported that both companies have been allowed to restart their plants after a policy reversal and lobbying by the Japan External Trade Organisation.

The Tokyo-based newspaper added that Malaysia’s national automaker Perodua Bhd – backed by Japanese car firm Daihatsu Motor Co Ltd – is also expected to restart operations yesterday evening.

According to Nikkei, Honda and Toyota had to temporarily halt production in Malaysia on January 13 and 14, respectively, while Perodua ceased operations on January 14, following Putrajaya’s order to reintroduce lockdowns in key economic hubs, such as Selangor, Kuala Lumpur and Penang, from January 13 to 26.

On January 12, the International Trade and Industry Ministry had published a list of essential businesses and industries allowed to continue operating during MCO 2.0, which included automotive manufacturing and after-sales services.

But the exemption appeared to have been withdrawn at the last minute that evening, when the list was updated to include only automotive repair and maintenance. Auto production was suspended during the first lockdown implemented in March last year.

Regulations gazetted online dated January 12 list the manufacturing and production of “automotive equipment” as an essential service that will be allowed to operate. Automotive repair and maintenance was excluded as a listed essential service in this gazette.

The government gazette on MCO 2.0 regulations dated January 15 had updated the list of essential services to allow for the manufacturing and production of “automotive (vehicles and components)”, instead of the “automotive equipment” previously listed, while also adding “automotive (maintenance and repair)” as a separate business under the services category that is allowed to continue operations.

Malaysia is the third largest auto producer in Southeast Asia, behind Thailand and Indonesia. Output during the January-November period of last year fell 19% to roughly 430,000 vehicles.

Perodua sold 220,154 vehicles last year, while Honda’s annual capacity in the market is 300,000 two-wheelers and 100,000 four-wheelers. Toyota reportedly manufactured around 61,000 vehicles in Malaysia in 2019. – The Vibes, January 19, 2021