This Friday, September 28 will see the National Budget 2013 tabled by Prime Minister Datuk Seri Najib Tun Razak. Bernama has reported that the upcoming Budget allocation is expected to increase by 10-20%, or up to RM300 billion compared to the previous RM232.8 billion.
Due to anticipation of the probable reduction of car duties, we’ve heard that some dealers have experienced drops in sales between 20-50% this month.
There isn’t long to wait now, and BMW Group Malaysia has released a statement by Managing Director Dr Gerhard Pils, outlining the group’s wishes for the Budget. In reference to the import and excise duty exemptions for electric and hybrid vehicles (currently limited to sub-2,000 cc engines), BMW Malaysia hopes they can be extended to all vehicles with green technology regardless of engine size, taking efficiency and emissions figures as the main criteria for consideration.
Amongst others, the group also desires more support in Advanced Diesel technology – which it says is “proven to be the most immediate solution” to the rising fuel costs – and a step towards adoption of Euro 4-standard fuel in the immediate future.
As you can expect, much more is to come as the day looms closer, so if you want to keep pace, keep watching this space!
Statement by Dr Gerhard Pils, Managing Director of BMW Group Malaysia
In the upcoming Malaysian Budget 2013, BMW Group Malaysia would like to see a continued emphasis on the positive steps towards encouraging the uptake of advanced environmentally friendly technology in the automotive industry which continues to provide significant economic opportunities for both local as well as international automotive companies present in Malaysia.
The on-going initiatives by the government such as with the mandatory adoption of bio-diesel has served to galvanise the industry towards appreciating the value and worth of diesel fuel alternatives and should be rapidly followed by a legislative framework which will see the nation’s adoption of the internationally recognised Euro IV specification for fuel in the immediate future. Such a move would ensure that Malaysia is compliant with world standards while providing citizens with the additional benefits of having better fuel consumption, a much lowered overall costs of vehicle ownership as well as lower emission of greenhouse gases such as carbon dioxide (CO2) into our environment.
As the world’s automotive industry is at the tipping point of change in terms of technology, Malaysia is at the forefront of capitalising on newfound opportunities with a concentrated emphasis on advanced ecologically friendly vehicles where we now have the opportunity of becoming a regional hub for the development and manufacture of energy efficient vehicles and components.
In light of the emerging strengths of Thailand and Indonesia as prime destinations for automotive development, it is important that the Malaysian government adopts a twofold strategy of encouraging greater investments towards introducing advanced green technology into Malaysia by businesses throughout the automotive supply chain, as well as financial incentives to encourage early adoption amongst consumers.
While the Malaysian government has already begun to provide import and excise duties exemptions for Electric as well as Hybrid vehicles, the framework of the existing policies remains restrictive as they are limited to vehicles with engines below 2,000 cc in capacity. We at BMW believe that for the full benefits of new and green technologies to be fully appreciated and adopted, the exemptions need to be extended to all vehicles that utilise such technologies regardless of engine size but with efficiency and emission figures as its main criteria. This will encourage early adoption by all consumer segments, as well as the entire automotive industry itself.
Furthermore, the Malaysian government should also look towards expanding its definition of Advanced Green Technology to also encompass existing Advanced Petrol and Advanced Diesel technologies which have come a considerable way in reducing emission standards.
In particular our fleet of BMW Advanced Diesel vehicles, which have been available in Malaysia since 2009 are capable of providing reductions in fuel consumption of up to 25% with the ability of travelling up to 1000km on a single tank of fuel. For the layman, this means that for every five days of travel, the fifth day can be considered free of fuel costs when compared to its petrol engine counterpart. Most importantly, Advanced Diesel alternatives are now able to match even hybrid vehicles in terms of emission standards.
Whilst these vehicles do not enjoy the government’s duty exemption benefits outlined in last year’s budget compared to their Hybrid Technology counterparts, we hope that Advanced Diesel technologies would be included in the revision of the National Automotive Policy as the technology has more than proven its worth to be efficient. At the current moment, Advanced Diesel technology is also proven to be the most immediate solution to the rising fuel costs for the automotive industry.
Nevertheless, BMW Group Malaysia is undeterred in its commitment to introducing the full range of its Advanced Green Technology vehicles to Malaysian consumers and the next phase of our BMW EfficientDynamics strategy will begin with the market introduction of the new BMW ActiveHybrid 3 and BMW ActiveHybrid 5. These new models offer excellent driving economy in both urban as well as non-urban driving conditions and will provide Malaysian customers with the most advanced Hybrid technology currently available.
On a final note, the Malaysian government’s current deliberations regarding the reduction or removal of excise duties is highly welcomed by BMW as it encourages a more competitive playing field which in turn will provide tremendous benefits to consumers, automakers as well as the general economy. However, it is imperative that the government approaches the planning and execution of such a change in policy with transparency, clarity and foresight to not cause disruption to the current growth that the industry has been experiencing over the last few years.
With the Malaysian automotive segment well on the road to recovery following the challenging economic conditions of the previous years, this is to ensure that businesses throughout the automotive industry supply chain are given the opportunity to make the appropriate preparations ahead of such a major transition and do not in turn become victim to speculative tendencies in the market which could result in a severe and negative blow to our re-emerging industry.
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Agreed. Right path to go.
I pity BMW. They invested a lot in promoting Diesel technology and launching their 520d and 320d on the government’s promise that they will bring clean diesel soon, but they got played out. Hello BMW, your behind got played lah by the Barisan government. Gerhad Pils, in Malaysian terms, this is refered to as kena “Main Belakang”.
You can have all the Phd’s from top business schools in Europe but in Malaysia, only one thing works, you must give Ang Pau. Only by giving Ang Pau, clean diesel will be brought here. This is not Germany or Europe where you can write long letters or go into discussions. Brainstorming also does not work in Malaysia. Analysis or thesis papers on clean technology also does not work in Malaysia like it does in Germany. What works here is Ang Pau or Red Packet. Sometimes, besides Ang Pau, you need to buy KFC Snack plate also for all the staff of the government department.
Trust me, once you give the Ang Pau, within a few months Euro 4 or Euro 5 even will be introduced.
Welcome To Malaysia!
If you use diesel, you half your monthly cost. I was using petrol all my life, when I switched to diesel, my monthly fuel bills became HALF.
Do you think the gomen want you to use more petrol or less petrol? If you use more, Petronas and all the other petrol companies will be able to sell more and will be able to pay higher taxes to the gomen.
The gomen want you to use more petrol lah!!! If you use diesel, half their taxes money they receive from oil companies and petrol stations, which run in the tens of billions is gone.
Aiyoo, Gerhad, you like to write long long press statements with bombastic words but the government just berak on you lah! in the Budget 2013.
“No can do.. Malaysia will bankrupt if you let diesel car go tax free as well.” As said by a true UMNO trooper..
With sky high price of houses and car, Malaysian will bankrupt first before Malaysia bankrupt.
I wish the Malaysian government would do their bit in protecting the environment and air quality. Singapore is more dense than KL and they have a lot of cars too but air quality is noticeably better than KL.
In your dreams Dr Pils … do u really in Bolehland the Govt will listen to you because you bothered to write a nice long letter??
Maybe u should try BRIBERY here :)
I agreed. The government should promote the green vehicle. Since this type of car is new to the markek and it is tax free. So it will not affect the used car market much. The capacity limited at 2000cc is not suitable. As many car manufacturers do not have car with capacity below 2000cc. By promoting the green vehicle, there are more fuel saved and government will save on its sudsbidy. It is a good move.
better promote green diesel than hybrid. Much cheaper price, long lasting & easy to maintain
Tax free or otherwise will not affect the mood to purchase Merc or BMW among rich people, you will feel that one day. You want to buy you will just buy, you cannot buy (rear), you will not, even if tax free.
HOUSE: Naive many of us, to have thought that government will possibly work hard to help to control house price. If I myself and my good friends are developers/constructors and they are sending me RM20OOO per house(medium to luxury houses) sold, do you think I want to control house price?
RM30OOO houses: who is going to take care of the quality, as this is again another ‘government’ project? Jangan-jangan cuma piling 3 kaki tetapi dalam report tulis TIGA PULUH kaki.
Sorry la your house is cheaper in the west. You haven’t see the price of the house here in Kuching Sarawak. 1 terrace intermediate cost you Rm1.5mil. Is that what you call government control the price? Dan lagi Low Quality, cracking after only 20 years. And with only 60 years leasehold.
With our bad road condition, we can’t commit back and forth 100 km away from our house. The road condition are bad. I’ve seen a lot of us got involve in an accident. Bad public transport.
The only thing we could do is to buy a house hat are 30-40km away from the city. Since, Kuching has no Condominium in the main city
As anyone would expect a statement from the head of BMW would have elements biased towards their own range of offerings.
But I do agree, there are many valid points in this statement, such as the viability of diesel and the need for Malaysia to adopt Euro IV standards immediately.
I don’t see how the Malaysian Govt would just abolish the exist completely – especially since our dear leader is busy dispensing money left right centre.
at least once we have Euro IV here, we can expect more company will bring in diesel car to compete with BMW.
short term, yes. BWM will have the upper hand due to its lineups already have diesel car
+1 on the diesel part. alot of manufacturers are withholding import of high end diesel models because of the low quality diesel here.
this budget 2013 better be good at least for automotive sector.. stop the bullshitting already.. or else.. well you know GE is around the corner.
yes, more diesel cars please.. below 2.0cc
fuel quality should hv been euro 4 already
encouraging investment in advanced green technology is good…the problem is massive funds required…
if private investment…they will want to reap the benefits of their investment…as the current green vehicle ownership is still low…investors will put off by low ownership of green vehicle…
another thing the financial incentives for green vehicle ownership…wow…a tall order as now hybrid prius is almost RM141k…almost in the premium price range…i’m thinking if incentives are given to green ownership…still not enough to encourage ownership as people are not spending more as they can get better value in economy vehicles…
anyway to encourage green vehicle, the gov has to get the basic infrastructure ready:
a)high quality diesel meeting the euro 5 standard
b)price reduction of all green vehicle
c)financial incentives??? not in favour but might consider tax rebate for green vehicle ownership
The gov shud improve the diesel 1st. We r living in the poluted country with the existing diesel which is outdated. If the existing gov dun do this I will vote for change of new gov.
tax reduction/abolish tax/reducing price: as tempted as it may sound, dont think big brother will grant it. there is so much to lose there. dont get me wrong, i’ll be the first one to jump up and down if it ever comes true but somehow, better not to have high expectation.
Realistically, maybe they will introduce ‘advanced diesel’ category in road tax pricing structure. Or if someone put their brain to work, perhaps they’ll revise the whole road tax pricing structure to be based on engine emission rather engine capacity. Maybe the latter one is a wishful thinking too..
Buttget ’13 must address
1-Reduction of new car price. Otherwise, no point bullshitting. Even 10% is ok as long as we can witness REDUCTION hence improving our disposable income
2-Tax incentives to high efficiency and low emission vehicle. The incentives must translated to cheaper car price. Prius should not beyond RM120k. BMW 520d should significantly cheaper than rather efficient 520i/528i.
3-Greener Euro4 must be introduced
4-Buying gasoline or diesel must use ID. Foreigners pay non-subsidized fuel. Harsh Penalty for traders that sell subsidize fuel. Smugglers deserve sterner punishment
Ha Ha Ha As long as Proton still cannot produce diesel engine so fat hope lah to to promote clean diesel
It’s Proton that caused everyone pain, sufferings, wastages, loss of disposable income
Yes must wait for Proton diesel engine..tick tock tick tock tick tock waiting waiting waiting
BN happy to sell dirty cheap Euro2 Diesel ( supplied 0.20 sen per litre) but tell rakyat must bersyukur for RM2 per liter so why worry
When 15 years later finally Proton diesel but it’s all too late RM Billions lost for nothing, diesel Euro6 shoot up price RM10 per liter, lost all opportunities given earlier but wasted
BMW should shut up and be happy of current tax now
BMW must appreciate the Rasuah level now otherwise no rich Kronies buy BMW or Kronies offer free BMW get big projek happy luxury lifestyle animal party go go girls
BMW – Bring More Women! No Rasuah No money lah to buy BMW or get it as Free Hadiah!
If you can get 20 sen /litre euro2 diesel, i buy 1 tanker from you. Pluck from sky number….
how much do you think it costs to distill a liter of diesel?
especially when you dig it from outside of your house (in this case outside of your shoreline)?
petroleum mining is the most profitable industry (other than selling drugs that is).
Profitable but risky industry.
On average, out of 10 wells drilled, 2 will produce.
6 will be dry, and another 2 will not produce sufficient oil to offset the cost of seismic surveys, drilling, completing and producing.
Just like a gambler in a casino. If he wins RM 20k at the craps table tonight, does it mean gambling is a highly paid job?
My source? I drill/steer oilwells offshore.
why do you pass statements on something you know nothing about?
you must be an idiot
OK look at most modern diesels now deliver 5-4litre per 100km or less fuel mileage…
Isn’t it same level with hybrid car fuel mileage???
Then modern clean diesel cars should get same Zero Tax treatment too
But as usual BN will argue it will require Euro6 diesel to achieve that mileage he he he
Euro6 diesel after subsidy still RM5 per liter…
Furthermore Proton still cannot produce own diesel engine…another excuse to delay clean diesel car again…
Ding Dong Ding Dong Excuses Excuses…Must wait Proton diesel again…Dare to pay RM5 per litre diesel Euro6 final trick by BN…
Proton Diesel…Euro6 Diesel RM5 per litre….typical crap excuses by BN lah ya will see
Ding Dong Ding Dong Excuses Excuses…Ding Dong Ding Dong Excuses Excuses…wait for Proton wait wait wait
Do you see any incentive under current Excise duty tax rate (below 1800cc cars)?
20km/Litre Efficient car –> 75 pct Car Excise Duty
8km/Litre Outdated inefficient car –>75 pct Car Excise Duty
Crap and Good car both get SAME 75PCT EXCISE DUTY RATE
How FAIR is that? You call that promote clean eco green car for public?
That’s why a new rate must be revised…such as:
Above 15km/Litre car = maximum 10 percent Car Excise Duty
Below 15km/Litre car = minimum 1,000 percent Car Excise Duty
HA HA HA Yes 1,000 percent tax for dirty inefficient cars…fair for rich car buyers and poor car buyers
Viva, Saga, Mirage, Yaris etc = RM15K starting price
3-Series, Gallardo, Veyron, Phantom etc = RM10 million starting price
INI BARU ADIL SAMA RATA…BETOL TAK!!!!!!!
before u speak, look at the facts first pls.
saga, myvi,vios sometime consume more petrol compare to 3-series. so ur 15k vs 10million car does not sound right also.
GE, which is coming soon of course will give an exact figure of what soon to change, that is why our current G’ worried so much, as now their justification over vehicle industry must be plan wisely, in otherhand, policy will affect their GE results, as for us “rakyat in Bolehland” already knew the results of ignorance by our G”. As Im concerned, me as a Rakyat, will cry loudly if there is no change of vehicle policy structure after GE, haiyaa..
If clean diesel being introduced in Malaysia, Proton and Perodua will tutup kilang.
and may also honda, and toyota…
Oh yes, Malaysia gov LOVE clean diesel technologi, here we also promote EnvoDiesel which is palm oil diesel and 5% less evil dinosaur oil burnt 5% more good deed to the environment, while no orang utan hurt during the process. And then yadda yadda yadda… actually it has nothing to do with environment, our palm oil nobody want to buy until price so low we want to burn up some to drive the price up. BMW clean diesel? What BMW clean diesel?
I personally think that hybrid will create more problem in long run. We need more cleaner diesel engine and quality diesel. Tax examption for diesel and efficient engine like 1.0 L EcoBoost I-3.
Euro 6 cars. Yummy!
We should just listen to them………
we wish we have more golds in olympics and all this hopes are illusive and only uplift our spirit for very short moment. Goverment should focus on things really matters to rakyat. eg: introduce cheaper cars and reduce tax and bring on the clean diesel technology.. goverment can take away the fuel subsidy at the same time abolish car tax. In this way, we pay more for what we spend not pay to balance other account.