"I am told, August," Rafidah told reporters of the much-delayed policy for the sector.

Malaysia announced last year that from January 2005 it would cut import duties on cars from Southeast Asian countries in line with a regional trade pact but continue giving local producers rebates to minimise the impact.

Then in January it delayed implementation of that plan until June, pending a review of the tariff structure, on concerns that foreign companies might shelve new investments or even relocate current Malaysian operations.