INGRESS Corp Bhd is one of the early players in the components industry to benefit from the national car manufacturers Proton and Perodua.

     Having succeeded locally, the company has set up a facility in Thailand and Indonesia to take advantage of the growing market in the two countries and the opening of the Asean Free Trade Area (AFTA).

       Executive vice-chairman Rameli Musa spoke to STARBIZ senior writer HASNI MOHD NASIR on the outlook for his company and Malaysia's position, in view of AFTA.

STARBIZ : How do you see the position of Ingress with the launch of Afta and the opening of the local automotive market beginning 2005?
     RAMELI: Afta will benefit Thailand directly. We already have presence in Thailand making components for foreign car companies like Mitsubishi, Ford-Mazda, and Honda.
      We have been quite busy in Thailand. Last year, total industry volume (TIV) in Thailand was 533,000 units, for the first time sur-passing Malaysia's TIV of 405,000.
      We expect Thailand to continue recording higher TIVs in the coming years. We will introduce more products in the Malaysian market to cushion against any slower sales of the two local car companies.

STARBIZ: Will Ingress be investing more in Thailand?
      RAMELI: Yes, we have already secured a contracts to supply door sashes for Honda Civic worth RM8mil annually. We have identified a piece of land in Ayuthia, for this third plant. Ayuthia is chosen as it is near the Honda plant.

STARBIZ: Is Malaysia still a good investment location for foreign carmakers in view of the emergence of Thailand as the "Detroit of Asia"?
      RAMELI: It is still not too late for Malaysia. It all depends on the government policy on how to encourage the players to come in.
      The government has had constant dialogues with the industry players and they will formulate something that will benefit both the two local car manufacturers and the foreign players. 

STARBIZ: Why do say that it is not too late for Malaysia to be at par with or even better than Thailand as the centre of automotive industry in the Asean region?
      RAMELI: Foreign car players are still keen on Malaysia. We have a good infrastructure, an educated labour force and a stable government, Honda and Toyota have shown indications that they would like to have a facility here.
      However, the number of cars assembled by these two players are not enough to give them the economies of scale.
       We need to have a sound policy to encourage foreign players to set up shop here.

STARBIZ: What sort of policies?
       RAMELI: It should be an expansionist policy and not protectionist. Incentives should be given as it will promote expansion and not tariff barrier, as this would lead to protection.