Car Prices In Malaysia

Digest this article, after that, you may need to vomit. What is the
Malaysian Govt doing all these while. Ripping off our Rakyat for the
last 30 yrs with APs designed to benefit a few well connected Bumis,
the UMNO/BN have robbed millions of citizens in this fiasco, under the
pretext of protecting our local industry. The Govt have forgotten we
Malays are the largest customers in the country. What is the NEP
policy doing ?? Ripping off the Malays (which forms 65% of the
consumer base) to benefit a few UMNO politicians !!!

BMW 535i sells for RM178,000 in the US

In the United States of America (a developed country which we are also

aspiring to become by the year 2020) a 2009 model BMW 535i Sedan is
selling for about USD50,367.00. This is only RM178,000 - about the
price of a Toyota Camry 2.4L here in Malaysia . The same BMW sells in
Malaysia for about RM450,000.

BMW 328i sells for RM155,000 in the US

The 2009 model BMW 328i 2 door Convertible sells for USD44,014 or
RM155,369.00 in the US . In Malaysia the same car sells for over
RM460,000. This is an untenable situation.

Audi A4 2.0T Cabriolet Convertible sells for RM142,000 in the US

The 2009 model Audi A4 2 Door 2.0T Cabriolet Convertible sells in the
US for USD40,328.00 or RM142,357. In Malaysia the same car would sell
for about RM265,000.

VW GTI 2.0T sells for RM85,000 in the US

In the US the 2009 model Volkswagen GTI 2.0T sells for USD 24,039 or
RM85,000 only. In China the same car will cost around RM60,000. Over
here the same VW car sells for about RM200,000.

And the 2010 model Toyota Camry 2.4L sells in the US for USD 19,659.00
or RM69,396 In Malaysia the 2008 Toyota Camry 2.4L sells for
RM170,000. Toyota Camry 2.4L, 2010 model. RM69,000 in the US

Car prices in Malaysia are about three times higher than the prices in
the United States. We are a developing nation. Our land and labour
costs are so much cheaper than the US . Why are our cars so expensive?
It does not make any sense. Tak masuk akal.

Then here are some car prices from our neighbour Indonesia .
The Toyota Altis sells in Indonesia for about RM46,000. The same car
sells here for around RM 112,000. Again we are three times more
expensive than Indonesia
The Honda Jazz sells here for RM108,000.. In Indonesia the Jazz sells
for RM 36,000. Three times more expensive.

We are paying ridiculously high prices (and actually impoverishing the

Malays - who are the largest buyers of cars in Malaysia) to support an
out of date, out of touch with reality motor car policy.

We are paying the highest car prices in the world to support the
Proton and other locally made cars as well as support a mind boggling
AP policy which only benefits a relatively few rich Malays. A
disproportionately large number of Malays and other Malaysians are
being impoverished to subsidise the wealth of a few inefficient rich.

26 million Malaysians have to pay three times more for their cars just
to support Proton and 120,000 people who are directly and indirectly
involved in the motor sector in Malaysia and the AP holders. That is a
ratio of 216:1.

This ratio of 216:1 is too skewed. 26.0 million happier people can
contribute many more votes than 120,000 members of an inefficient
motor industry. 26 million unhappy people can change a Government.
(The maths is not really difficult here)

And this outdated policy is impoverishing the Malays more than anyone else.

Here is some news from our DPM Tan Sri Muhyudin Yassin about our car
policy. This is truncated:
Muhyiddin assures govt support for automotive parts and component sector

1. KUALA LUMPUR, May 26 - The deputy prime minister said special focus
will be given to "facilitate and encourage" the development of the
automotive parts and component sector despite the current global and
regional economic downturn.

2. "Under the CEPT and Asean Trade in Goods Agreements, Malaysia has
agreed to eliminate import duties on all products in the Normal Track
on January 1, 2010. This includes motor vehicles, auto parts and
components," he said.

3. He pointed out that . .. . the motor vehicle sub sector in Malaysia

will not be directly impacted because of its heavy dependence on the
domestic market.

4. "The Malaysian government recognises the contribution of the

domestic automotive industry towards the development of the country."
Para 2 sounds promising but then Para 3 and 4 basically says that the
Malaysian motor car industry will continue to be protected. This means
we will continue paying the highest car prices in the world for
automobiles.

Cuba kita kira : kalau kereta Honda Jazz di jual dengan harga yang
sebenarnya (lebih kurang RM36,000 saja) dan bukan pada harga sekarang
(RM108,000) maksudnya bayaran bulanan pembeli kereta akan jadi kurang,
mungkin sepertiga sahaja daripada bayaran bulanan sekarang.

Jika sekarang orang bayar RM1,500 sebulan untuk beli Honda Jazz, kalau
harga kereta lebih menepati harga pasaran dunia, orang kita perlu
bayar sekitar RM500 saja sebulan.

Maksudnya tanpa Kerajaan perlu membuat apa pun (merangsang ekonomi,

belanja berpuluh billion Ringgit duit rakyat untuk stimulus dan
sebagainya) setiap rakyat Malaysia yang membeli kereta yang seharga
dengan Honda Jazz akan dapat menjimatkan sehingga RM1,000 sebulan
daripada kos sara hidup bulanannya.

This is like giving the car buyer an RM1000 pay rise without incurring
any extra costs for the taxpayer, the Government or the economy. It
will greatly reduce the cost of living in Malaysia and spur greater
economic growth too.

Tapi sekarang, yang menjadi mangsa dulu dan yang menjadi miskin dulu
orang Melayu juga. Orang Melayu yang paling ramai sekali menjadi
pembeli kereta dalam negara kita. Orang Melayu kebanyakannya makan
gaji - tiap bulan dapat gaji tetap. Bila harga kereta naik gila, yang
menjadi miskin di saf depan sekali adalah orang Melayu juga.
In absolute numbers, the Malays are suffering the most because they
are the most in number among the fixed income people who also buy
cars.

Some folks said the other day that Proton has 150 major component
suppliers, dealers, distributors and about 500 other parts suppliers
too. Of the 150 major component suppliers, about 15 of them are listed
companies. In total they employ about 120,000 people. The Proton
supply chain is a mix of bumiputras and non bumiputras. But here is a
sad fact : none of them are operating at their level best efficiency.

Our motor car policy is forcing Malaysians to subsidise Proton so that

Proton can sustain major inefficiencies in the Malaysian economy. This
is not a good thing at all.

We have to unwind this situation. Set a target of 18 months from now

to unwind all protection for our motor industry. Remove the
impoverishing AP policy also in 18 months. Let Malaysian car prices
reflect world market prices for the same makes of cars.

If a BMW 535 sells for RM178,000 in America , it should sell for a

little less here in Malaysia (our rentals and salaries are cheaper).
Fw: Car Prices In Malaysia
The Ministers continue making pronouncements about the car industry as
though nothing has happened. I hope everyone will please wake up. The
Government has a real chance of getting thrown out of office in about
three years. The people will not accept inept answers anymore.

The ridiculous car prices in Malaysia is an issue that is just

beginning to get more attention and publicity. It is going to become a
really big issue in the near future. Be forewarned.

YOU ARE RIGHT, THE GOVERMENT IS NOT THINKING WISELY TO INCREASE THE
CASH FLOW. IF THE CAR PRICE IS LOW THERE WILL BE MORE CASH IN PEOPLE,S
POCKET AND THIS INTURN WILL REVOLES THE WHOLE ECONOMY SECTOR.

mahathir mempunyai pandangan 100 tahun kehadapan; iaitu bagaimana nak

memiskinkan rakyat malaysia. dan mengkayakan kroni2 dan anak2nya. jangan
lupa dia adalah punca terbesar segala masalah yang yg dihadapi negara
sekarang.

NO choice......
The Umno member that own the AP.....are all rich.
Umno always same Kita akan memperlihara hak orang Melayu. Tapi makan darah
Orang Melayu.
Please wake Up Malays. We must fight our right.
Other race is must suffer than we Malays.......
They had to work hard....than us to get something.

Someone forwarded an article by a Syed Akbar Ali, who must be really upset about our
unreasonably high car prices. I know cars are much cheaper in UK, USA and Australia but his
figures show even more so than I thought! Though he has the point about the high car prices, I
think he has oversimplified the argument. Eg. the use of 26 million people in the population
as all car purchasers. Then he has overlooked the aspect of the loss of revenues from import
duties and excise duties which had to be removed to enable low car prices. Despite leakages
and so on, I am sure such revenues form a large part of our government income to finance
certain development expenditures. Besides the people working for Proton and component
suppliers, we have seen how continual recent reductions in car prices had badly affected
resale values of used cars which caused hardships to those who are unable to repay the
balance of their loans if they were to terminate prematurely the hire purchase agreement.

A sudden removal of duties would be chaotic. Just imagine if you were the purchaser of a
Toyota Camry which costed Rm170,000 and within a few months, the government decided to
remove all duties and the price came down to Rm70,000, how would you feel then?
Approved Permits, Car Import Duties & Road Tax – revamp the current system of very
high import duties and tiered annual road tax and create only 3 categories of cars (budget,
standard and luxury) and such measures will result in government earning more income while
consumers will benefit from cheaper purchase of cars

• Reduce import duties based on current format for new and imported used cars
(standard and luxury) by 50% but for budget cars, reduce import duties by 80%
• Abolish the “AP Approved Permit” system and introduce a “registration tax” payable
to the government upon the initial registration of cars and subsequently, a greatly
reduced rate of this tax for the onward sale of the said vehicle to the next buyers. For
example, if the current AP market price attached to every imported car is RM50,000
(govt gets zero income) then this proposed registration tax can be for example
RM15,000 payable directly to the govt and subsequently if this same car is sold to
another buyer (depending on the years after the first registration), a reduced rate of for
example RM5000 (if less than 5 years) and RM2000 (if more than 5 years) can be
imposed on the subsequent registration (2nd hand sale)
• Impose a one off “special luxury tax” for luxury cars (it is proposed that any car above
3000cc and original selling price of at least “X dollars” based on an international rate
card can be considered as luxury (Government can decide on a list)
• To protect the national car industry, government can give direct incentives for people
to buy a Proton or a Perodua such as to abolish road tax for national cars (and 100%
rebate of one road tax for the non national car owned if the same household owns a
national car as well), 50% insurance rate, preferred financing rates etc
• Impose a one rate annual road tax for the 3 categories of cars ie RM150, RM500 and
RM1000 respectively
• Reduce basic insurance rates for cars

Proton Lancer (Waja Replacement) a rebadge of Mitsubishi Lancer

• Author: zzoom
• Date: Apr 2,2009
According to the business weekly paper, the Edge (week of 23rd Feb 2009), Proton will be
releasing the new Proton Waja 1.8l, which is a rebadged version of the Mitsubishi Lancer 2.0l
in 2010.

Further refinement is currently underway. The looks will be different from the Lancer and
spot its own characteristics. But one things for sure, the mechanical aspect and design is all
Mitsubishi. Let’s hope the assembly is of quality.

This also means that Proton is now effectively in the business as a car assembler rather than
car manufacturer. There is effectively minimum difference between Perodua (backed by
Toyota/Daihatsu) and Proton (Mitsubishi).

Did i say they will also price the 2010 Proton Waja (aka Mitsubishi Lancer) at 80k? Honda
City & Toyota Vios will have much tougher alternative from Proton Lancer this time.