KUALA LUMPUR: The domestic automotive industry received a shot in the arm when the government increased the loan amount for certain categories of civil servants to buy cars.

The amount of government loans for several categories of civil servants has been raised by RM10,000 (S$4,194) each.

This was part of the broad measures announced by Deputy Prime Minister Datuk Seri Najib Abdul Razak yesterday to help Malaysians cope with the sluggish economy.

Civil servants in the Top Management Group, or Jusa grade, can now apply for a car loan of up to RM70,000 from RM60,000 previously.

Staff in grades 41 to 54 are entitled to a maximum amount of RM65,000, up from RM55,000 previously.
Support staff, meanwhile, can now apply for loan of up to RM55,000 from the previous RM45,000.

Proton Edar Dealers' Association president Wan Ahmad Sepwan Wan Abdul Rahman said the incentive was timely under the current situation.

"The increase in government loan eligibility will also further shorten customers' trend of changing cars, from every four or five years previously," Wan Ahmad said when contacted yesterday.

Proton, he said, would be a big beneficiary as the carmaker's target buyers are mostly in the RM45,000 to RM70,000 bracket.

Nevertheless, Wan Ahmad does not anticipate an instant impact as the total industry volume is still expected to trend downwards until the end of the year.

"The Malaysian Automotive Association has forecast that the last quarter will not be stronger (than the previous quarters).

"However, the incentives should help attain the industry full-year forecast," he said.

MAA has forecast a 4.7 per cent sales expansion to 510,000 units this year from 487,176 last year.

The total industry volume for the first nine months stood at 429,913 units from 358,234 previously.