Malaysia among examples as US clears path for compact car production

KUALA LUMPUR: Malaysia's compact, fuel-efficient vehicles were highlighted by US President Donald Trump, who cited the country as an example as the United States moves to remove regulatory barriers that had previously prevented the production of similar small cars in America.

AI Brief

Trump announced new US fuel economy rules allowing compact, affordable cars to be produced domestically.
He cited Malaysia, Japan, and South Korea as examples where small cars are widely accepted and practical.
The Transportation Secretary confirmed regulatory barriers have been removed for automakers like Toyota and Honda.

Trump, who recently visited several Asian nations, said Malaysia, together with Japan and South Korea, demonstrated how smaller, affordable cars remain widely accepted and well-suited to everyday use.

"If you go to Japan, South Korea and Malaysia, they have very small cars, sort of like the Volkswagen Beetle used to be. They're very small, and they're really cute.

"And I said, how would that (compact, fuel-efficient vehicles) do in this country? And everyone seems to think good. But you're not allowed to build them," the President said when announcing new US fuel economy standards in the Oval Office at the White House on Wednesday.

He said the US has now authorised a regulatory change allowing American manufacturers to produce such vehicles domestically.

"I've authorised the Secretary to immediately approve the production of those cars," Trump said, adding that compact models similar to those common on Malaysian roads could become an attractive option for consumers in the US market."

According to the President, Asian automakers, including Honda and Toyota, had produced compact models that are "beautiful" and proven to be popular in countries like Malaysia.

The US Secretary of Transportation Sean Patrick Duffy has confirmed that he had been instructed to remove regulatory restrictions to allow compact, fuel-efficient cars to be manufactured and sold in the US.

"He gave me the directive to clear the regulations on this, which we have done. If Toyota or any other company wants to make smaller, more affordable, fuel-efficient cars, we have cleared the deck so they can build them in America and sell them in America," the Secretary said.

President Trump recently attended the 47th ASEAN Summit in Kuala Lumpur -- his first visit to Southeast Asia during his current term -- before continuing his Asia tour with visits to Japan and South Korea. He later met Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) forum to discuss trade relations.

-- BERNAMA