Last week came as a blow to Singaporeans seeking to buy cars. Already faced with high Certificate of Entitlement (COE) prices, the Monetary Authority of Singapore (MAS) placed a cap on motor vehicle loans effective February 26. The new rules lowers the percentage of loan one can take and the tenure of the loan as well.
For a car with open market value (OMV) that does not exceed $20,000, the maximum loan-to-value is 60% of the purchase price, including relevant taxes and COE. For cars with OMV of more than $20,000, which includes most cars in the market, maximum loan will be capped at 50%. This means a bigger cash downpayment.
In addition, the tenure of a motor vehicle loan will be capped at five years max. These new financing restrictions does not apply to loans for the purchase of commercial vehicles or motorcycles.
“The financing restrictions are necessary to encourage financial prudence among buyers of motor vehicles. In this prolonged environment of very low interest rates, there is greater risk of buyers over-extending themselves on motor vehicles,” the MAS said in a statement.
This is in contrast to the situation in Malaysia, where carmakers are dangling whatever possible to lure the punter – cash rebates, 0% interest rates, freebies, free service package and accessories, you name it. The “over-extending themselves” situation MAS mentions is true in many Malaysian households thanks to easy and cheap loans. Do you think the knot should be tightened in Malaysia?
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Singaporean kaya people maa….no problem their salary huge….claim by bolehland people
a statement that is full of jealousy…
Actually Singapore cars are cheaper than Malaysia. You see, the GDP per capita of Singapore is 5 times that of Malaysia. What this means is that the average Singaporean earns 5 times more that what their Malaysian counterpart earns. So, a S$200,000 BMW 520i is so much cheaper that the RM360,000 BMW sold in Malaysia. Petrol is also cheaper as what the Singaporean earns, it is much cheaper than our Ron 95 in Malaysia. Btw, most government servants in Singapore earn RM8000 and above and our government servants still earning RM1200. So, you do the maths. Malaysia HAS the higest car prices in the world. Thanks to our government for supporting the AP Club.
Yet, before you can get a car in SG, you need a piece of shit paper to allow you to own a car for only 10years, each of your cars you gonna own, need a paper each. Sounds like you haven’t got any cars in SG yet, that’s why you forgotten that crucial point
BMW 520i do not cost S$200K, you can only get a 320 with that. And petrol is definitely not cheaper, that’s why they can’t afford local petrol and would rather drive into Johor Bahru to pump our ron97. Also, most govt servants do not earn RM8,000. More like RM5,000. I’m Malaysian and have worked in Singapore for 16 years before retiring. I still keep in contact with my Singaporean friends and know much about the situation there.
Two countries, both started same time. But one country work hard and very focussed making money. The other country, just want to eat, sleep and kongkek. So see where the country is now!
I mean Singapore is the kongkek one
BN car loan model: –
1) Make local consumers life dirt cheap but car price damn expensive.
2) Give cheap loan (i.e. low interest)and extend up to 9 year loan so that the “poor-and-ugly” owners of Juara Kampung No. 1 and Jaguh Kampung No. 2 can own these craps 1 star rating Saga BLM, and at most 3 star MyVi.
3) Ha, ha, ha, …… many out there are die hard blind supporters who are willing to part their cheap life and hard earned monies in the name of local products, national car and of course crap-triotic spirit to sustain this un-sustainable deadwood jaguhs kampung under NAP!
4) Last but not least are to support the super luxury lifestyle of our Datuks, cronies and AP Kings with Lambo, Merz, BMW line their bungalow garage complete with young and beautiful 2nd, 3rd and 4th wives!
5) If BN win the next GE 13, perhaps the excise duty will increase further and car loan extend up to 12 years with cheapest loan!
PR
1) Rafizi Ramli will reduce car price gradually on 20% yearly until all prohibitive (excise and import) taxes under NAP are abolished!
2) Ha, ha, ha, …… these 2 jaguh kampungs, cronies, AP King and the ilks, your day as “untung atas langit” is game-over!
3) Finally, Langkawi market prices will take place, and every consumers able to enjoy affordable car with good quality.
4) By the above, the consumers even have no problems to buy cars with the loan tenure is cap at max 3 years. This is because the cars like Viva should be selling below RM 20K!
The verdicts are we need people-centric open market car policy as what put forward by Rafizi Ramli, not the crap Datuk’s lip service NAP which serve the elites!
Whenevet you think you are suffering for your car, just look down south and be sort of happy. Still, car prices in malaysia is too damn high we dont earn as much as them kiasus.
must be happy with malaysia. life is good. good is life. paultan is good. good is paultan.
so good to have a cookie based ban system. nice. never encountered one before. next must put a comment guideline at front page.
here car price will drop, loan tenure will reduce, interest will rise, loan amt will reduce… wait n see…
Why compare with south SG? why not compare with the East (i.e. Brunei), dirt cheap car and dirt cheap petrol!
at least we are not going to face so many anoyying singaporian cars at malaysia…. sit bus come.. dun drive your car here.. is bloody jam in malaysia tourism spot like melaka, kl, penang and others.
You membela so many tigers, now you see the tigers bite you already. Blind people support tiger rearers.
malaysia boleh!!
Boleh membela tigers, lions, leopards mostly from our neighbours.
should we back to old practice? Capped to 5 year loan & min 10% d/p? Hm…who tried this at this time?
yes i have tried before myvi mthly 800+ but guess what… loan finish already and got a cash car worth 30K. So i am glad I took this hard road….which many will not take..
well… most decent minded people should. if you have to take more than five years for a car loan; then definitely you can’t afford that particular car.
live within your means.
gotta blame partially on gov for the high car taxes in malaysia. otherwise alot of ppl can afford to take a 5 year loan and still own a budget jap/korean car or something equivalent.
Well, it wouldn’t catastrophic to say the least cos really…Singapore has super efficient public transportation. Hence buying a car is not a necessity, its a choice. Alternatively they could live without cars. But of course if you could afford it, by all means get it.
In Malaysia though as we speak, rakyat don’t really have a reliable alternative. Motorbikes the least, getting a car is a must especially when ferrying around family members. So no. This loan thingy would not be practical upon implementation in Malaysia
they can do that bcoz the gov built the system ahead of demand so when demand present, the system already in place….try do that in bolehland for sure kene bash by some people..
Can’t agree more.
So if we all know the root cause is efficient public transportation, y not demand for this? Do u enjoy paying car loan+fuel+parking+toll+maintenance month after month?
I did a simple calculation: With the ANNUAL vehicle sales in Malaysia, you can fill the 775km PLUS highway if arranged bumper to bumper – on ALL 4 lanes.
And u wonder y there’s traffic jam?
Put another way, what’s the point of owning cars and paying the monthly cost, if very soon, there’s no way of driving them?
I don’t care who u support, PR or BN, get them to IMPROVE PUBLIC TRANSPORTATION.
I agree with this..
The public transport in Singapore is so efficient that I don’t even see the need to drive into Singapore unless necessary..
My girlfriend is working in Singapore and her landlady’s family doesn’t even own a car..
They only rely on the public transport for their family of 4 to move around..
And not to mention also their fares are really cheap..
A train ride from the west most station to the Changi airport costs less than SGD3..
Our LRT+Monorail from Seri Petaling to Times Square costs almost RM5 already..
Not only should our public transport improve..
They should also be made affordable..
I love taking the public transport into KL after a long week behind the wheel..
It’s my way to reduce my footprint no thanks to my work requirement to drive everywhere..
But the inefficiency of our Bolehland’s public transport is putting me off..
Bro, compare the land are first. SG is only 23 km radius. Do you know the size and population of Malaysia combining sabah and Sarawak? Compare an apple with an apple bro.
Alteast we should be happy with what we have now and enjoying in this country.
We Malaysian are always like to compare with others and forget about our uniqueness.
Because there are people like you, who are complacent and do not want to compare that Malaysia ended up behind a lot of nations. we are suppose a country that are rich in natural resources and free from major natural disaster and yet we are way behind a lot of countries. This is caused by people like you( I bet you are a government servant!)
M’sia should do the same.
Not realistic if implement in Malaysia…
In Malaysia, max capping limit can apply is 80%, cannot lower..
My sympathy to normal Singaporeans who struggle to make a living. Now it seems that only the rich can afford cars in Singapore. And car salesmen now might need to change jobs too….
They have efficient MRT to get them to places, without even have to buy a car. Look at the bright side, we the average Joe has 9 years loan to buy a sub-par Malaysian made car.
not to mention, if ever they need a taxi, just get the concierge to call a taxi, the nearest taxi comes over with GPS in car, you just tell him the name of the street. no question about using meter or no meter too.
I can live with no car in Singapore but definitely not in Malaysia.
certainly something Malaysia needs, if excise duties is to be gradually abolished. I would even suggest the loan tenure for Malaysia to be cut even shorter, probably to 36 months at max.
makes perfect sense… as the taxes drop the loan tenure should drop as well as the loan margin..
whatever automotive finance situation hit singaporeans, their public transportation are top notch…in malaysia we still struggle public transportation….
We should implemented this when our car price become cheap soon.
To ensure household debt are kept in a manageable level, we should follow suite, lower loan percentage should be imposed not only on car, it should be on 2nd & onward housing loan too, this would drastically reduce bankruptcy due to unable to pay back car & housing loan, learn those lesson in US & Europe.
Far form been among the top GDP Per capita country, yet our car are among top 10 most expensive & house been 9th most speculated, stagnation of wages had lower our purchasing power & increase of household debt at a worrying level. (2nd highest in Asia after South Korea).
Due to the low interest environment, Malaysians are definitely over-extending. 7 years? 9 years? Most cars will start to have problems by the 5th year onwards. That means from the 6th – 9th year onward, they’ll be still paying installment AND also coughing up money for car maintenance. Owning a car on the 5th year with a 9 year loan, they’ll be still in debt if they sell it.
Singapore government just taken some action in cooling down the over heated property market recently, now the unprecedented move to cap car loan, they know that people debts are ballooning, and might lead to catastrophe. Did their government knowing something we all don’t?
Unfortunately, Malaysian are too short sighted. When BNM revised the loan policy for cars, many cried wolf, especially the car dealers.
If they were to introduce this, even more crocodile tears from businesses and others. I hope the day comes we can go back to the days before Proton, where the loans were better regulated and affordability for the middle class was reasonable, unlike the ridiculous blood sucking system we have today.
Ya. The good ol days without Protons.
Singaporean government is very proactive with what they are do. Like it or not their government, and infrastructure is top notch and efficient. We Malaysian can sometimes envy, when we look at our current Malaysian government doing lousy jobs.
Totally agree with you kelvin!
But the Malaysian government is doing a good job in stuffing their pockets with wealth. When a project for public transportation is proposed, I don’t think they cared how well it will serve the people, but rather how much they can make out of it.
Danny, it doesn’t really matter to them. Their public transport coverage is so good that they can live well even without cars.
In Malaysia’s case when one is without a car, one has limited selection of work place, house, etc… A car or a motorbike is somewhat essential here. Don’t believe me? Try going around without a car or motorbike. You are only allow to travel by public transport and there shall be no car pooling either. Let’s see how limited your life will be. Challenge accepted? :) Should be a nice youtube video for paultan site. Paul, make Danny DO IT!
Yeh. Can tighten credit when we also have a world class public transportation system like Singapore.
The knot should be tightened after we are given good public transport. A Singaporean won’t feel the pinch in their country compared to Malaysia because many of them are already within close vicinity to superb public transportation services.
Yes, max loan 80%, max loan period 5yrs. Reduce gratually over a few years.
and when this in place, automatically demand for cheaper, used cars will increase as well. with demand, comes better resale value.
Malaysia should implement similar policy provided the car price is really low
It is good..it will help citizen to reduce debt and increase their economic power. Just take for exmple german..their citizen has d greatest power in term of buying power bcoz they have less fmily debt compare to other country..bcoz they buy car cash! Even if, they only take 3 years max for car loan.i know bcoz i worked there..anyway, sngporean still can afford car though..coz their car price with respect with salary is not too much..not like Msia..
Najib:”Don’t compare to the world, we are the world best. If you don’t like please leave, why are you still here taking 9 years loan?”
Yep, the same thing should go here as well, it is just to easy for everyone to get a car nowadays in Malaysia, and lead to worse situation – one bad traffic jam… if we want to avoid the same situation as in China, Russia and many other place with bad traffic jam, we need this kind of regulations as well, which at least can help in reduce traffic jam (limit the selling of car vehicles, increase more public transportation, thats the way to go)
Definitely. It has become the norm for malaysian buyers to take 9 year loans. This wouldn’t be a problem until they volunteer background info such as marriage, babies, property plans with very limited income in various forums.
Actually they should make it more strict in Malaysia. Abolish 9 year loans, but first make our car prices more affordable.
If Ringgit Malaysia is equal to 1SingDollar= 1 RM, then we can talk about this stringent move.
Otherwise, with Malaysian Car prices, no monetary power, with RM5k to RM10k salary, cant own even local car or Asean made car.
Not to mention property prices that sky rocketed lately.
With the household debt on the rise, wait till you see how much our government deficit is, it is about 500 billion for such a small country with all the natural resources and Malaysian is working hard. We have to really think, how can that be?
over-extending is an understatement when most malaysian households is using a third or even half of income to service their hire purchase instalments. the results will be never ending cycle of debts.
This is really the best way to encourage financial prudence, and reduce the default of loan payment. Less car being tow back by bank compared to Msia. Good job singapore.
malaysian gov is better. glad i’m living in malaysia.
Malaysian opposition government is it?
glad i’m living in malaysia
Hi guys, Singapore is not really as good you guys make it out to be. If you try living there for a few years, tell me again if you think the system is really good there.
Car sales means more tax revenue to the Malaysian government. Malaysians may think that is a good thing to have loans made available to them but it is not so good after all. They voluntarily pay more tax and spend more. Singapore has very good public transportation systems that run very efficiently, something not available in Malaysia.
singapore has its reason for clamping down cars usage due to land shortage there. why should M’sia follow suit? we have plenty of open space in Msia. moreover, we have M’sians appetite better cars other than Proton and Perodua have been suppressed for far too long. pls give Msians a chance to enjoy better cars other than just Proton and Perodua !
oh mesia veri big…im wondering why the flyfm traffic girl broadcasting the same damn never ending traffic jam here and there in KL every morning and evening…
Give us MUCH lower & more competitive car prices as well as superb public transport services. Then gradually reducing the loan amount & period etc from 90% / 9yrs to 60% / 5yrs, the rakyat will not complain if these rules are implemented. In Singapore the public transport is so efficient that one don’t have to own a car to survive there. In addition, their country is small (smaller than Penang)which makes it easy to travel from one corner to the other using public transport. And for those who can’t afford to own a car but want in Singapore, they can get a bike which is much much cheaper compared to Malaysia.
CONCLUSION : These policies will work in Malaysia IF car prices are MUCH cheaper & having superb public transport.
Well, the whole reason they cap the car loan to 50% is to deter people from buying too many cars. With that, COE prices goes down, traffic get under control and public transportation gets a boost.
Not too shabby if u ask me.
But most of our public transport passenger r mostly indon, bangla, myanmar dan macam2 third world country.. Cuba tengok metrobus kat kotaraya sudah..
In SG, the conditions just about the same. All the Philiphinos, Bangla, India, Viets and PRC took the MRT. Dont believe me? go figure it out. Just take one shot MRT journey. Plus, Singapore just a small country. Smaller than Penang. If their PAP’s government fail to do something to enhance their public transport then SG become another super congested world. The geographical of SG makes their public transport networks advance.
btw, Singapore is bigger than Penang island :)
They can do that as they have good public transport.Small island good transport, why need car?I don’t mind doing that here if there is good public transport and widespread connection.
The problem with public transportation in Singapore is they are too crowded within that small island. Some more you have to fight for your seat in the train and bus with other foreigners. Even Kiasus cannot tahan using public transportation there. Everyday complaint now with this rule a lot more people will be using public transportation. For this I rather use a bike or migrate to Canada.
Yes.what Singapore is doing are all seem right.High car price, high pump fuel price and a developed public transport system.And now curtailed loans for cars.
Similarly, to reduce number of cars in the city Malaysia should increase fuel price to that world price at RM3.80 per litre as voiced out by Yamin Vong in Cbt Nst today. However, he said the non – subsidy fuel price is as a possible trade-off for lower car prices.(No tax)
The freeing of subsidy money also can be used to further develop the infrastructures and the feeder system for a comprehensive public transport systems.
In Malaysia also stringent hire purchase loans was implemented last year together with tightening of housing loans by Bank Negara.
Well said.
m’sia shud implement SIMILAR policy to control the increasing house debt. we don’t have to follow such extreme rules and we can’t bcos we have SUCK public transport.
what i mean by SIMILAR is something like 80% loan, maximum 5 yrs. this is to deter unnecessary buying and to reflect better on the meaning of AFFORDABLE.
i saw quite some unnecessary buying, i.e. wife has a city but the husband bought a forte and they hardly travel outstation. NECESSARY or PRIDE or LOOK GOOD?
the answer is probably between look good or the quality and image or p1/p2
implementing similar policy is definitely good for the people but
– those with LOOK GOOD need will complain – i.e. bad gov
– car dealer will complain that their sales go down – i.e. cronies dealer, Proton & P2 – we seen this when Bank Negara tighten the loan condition.
Do you think this is ever going to happen NO! NO! NO!.
When we talking about public transportation, are we refers to kl or penang or kl-penang? How about balik kampung style without a car?
Malaysian people are ego maa.. All wanna show off with their myvi vios city. Takkan balik kampung naik train.. Mana standard.. :p
You talk so much. Why don’t you show it first.
*sarcasm mode*
I think the train is a very good way to go back to kampong.
myvi also can show off? show off to who? the mat rempit? best joke of the year…
Take it easy guys, the guy is just being sarcastic about it. Chill lah..
BTW, I do agree that the train is a good way to go back kampung. I do it rather often and it is cheap, plus I get to sleep on the train. When I wake up, I’m there.
:)
A car would be very useful to travel around my kampung though – public transport there is literally non-existent.
It looks like Johor is going to boom fast these coming few years.
With killer duty structure there is no way malaysian can reduce household debt. We have to take loan on the taxes and duties which is thin air!!!!. The only legitimate tax that we should pay is Sales tax…the rest is free money…
Import Duties 30%
Excise Duties 80% to 125%
Sales Tax 10%
AP $$ depends.
bachelor guy with salary rm2k can afford a car in malaysia. but in singapore you cant have it even bump to sgd3k.
Afford a car with 2k?
You must be still living under your parents’ roof.
Even if you buy the cheapest car in the market, the basic Viva, you are still paying 480/mth for 5 years ( unless you are those that take a 9 year loan). Factor in insurance, maintenance and petrol cost, you’d be looking at 1/3 your salary ( I assume NET) to your car.
If that’s not too high I don’t know what is.
Now factor in rent, health insurance, life insurance, food, basic necessities, your hand phone bill and other utilities…. Please do tell how much one would actually save, say as you said, as a bachelor, for your wedding, kids, house, and upcoming life “expenses”. ( and if you take a 9 yr loan, this will likely overlap)
I make many magnitudes of that basic salary and I would be foolish to buy a new car in these sort of economic outlook. I’m sticking to my car for a while longer.
Singapore is acting with foresight.
Seeing how cars are flying off dealerships, i have a nagging suspicion Malaysia car buyers are following the “buy first, and see how to pay it later” mantra (much afflicting the credit card market as well)….Somewhat proven when BNM tightened it lending policies.
if u need more than 5 years to buy a car in malaysia, that tells me you cant afford it or are spending beyond your means.
BTW, public transporation in Singapore is efficent ONLY if you compare to Malaysia, but miles apart to Hong Kong.
Singapore compare to Hong Kong is 10 miles away, Malaysia is about 238,857 miles away, to be exact the distance from earth to moon.
i welcome the government to do the same in M’sia if our public transport and maintenance of it and also the crime rate can be half as good as singapore
i certainly dont feel scared taking a cab in sg at 2 in the morning and worried abt getting chopped
Why are you comparing public transport in a country 710km2 with 330,000km2. Yes, public transport is good there but similarly with malaysians, singaporeans have the same egoistic self conscious as malaysians do. My wife is singaporean and is always in anger when malaysians compare thinking singapore is better, which then downgrades our own nation and people.
I love cars, so do many people in singapore. But i have worked and spent hours per day working to save money so i can get a car of my dreams, safe too for my family. As with malaysian regulations, cars with more airbags are more expensive, so i need a long term loan to settle with other purchases i have made to make my family safe and comfortable.
Now, the reason why many people, of any nation, could not cope with such payments and caused more harm than before, because they could not settle for what they can afford. Loans are easily accessible and banks can approve loans easily to those who have been blacklisted before. We need to educate malaysians on money and to be a clever spender.
Still…so many are complaining that the car price in Malaysia is too high…
(Only minority of Singaporean can afford a car. Local Singaporean. There are many rich outsiders that convert to become Singapore citizens, those are not locals…)
Want to drive a BMW, yet can only afford to pay kancil price.
Want to live in a bungalow, yet hoping money drops from sky.
Thinking that changing the government, salary will become RM1200 a month (minimum guaranteed), or RM2k per average Malaysian. Yeah…new government is going to give you free water, free electric, free house, free car, free money…yeah…
Dream on…and continue to stay as what you are now.
Its people like u who support cow thiefs And so on. u know who they r. And that thief is still in power. sigh…….
opposition did not promise any of the free things u mentioned.The Gov has corrupted your mind too.
Wake up Sir. Your country needs u
Are you on drug or drunk? What are you taking?
i agree we might continue to stay as what we are not and not hoping things is going to be better overnight.
what i worry if the GOV IS NOT CHANGED, we will NOT continue to stay as what we are now (consider it good), M’SIA COULD BE BANKRUPT.
cant bliv till now when BN is on the verge of losing they are still hardcore supporters. Honestly, i support ur loyalty towards ur party. but as Malaysian we need to do what is best for our country. Im not saying PR is Godlike. mayb one day they will be corrupted. but now all we need is a change. we cant stick to BN for long. see what BN benefit the rakyat besides enriching their member2.or mayb u r one of the enriched member? if thats the case,its not unusual for u to support them.
Ha ha…yea we have loads of dreamers in malaysia nowadays. Keep dreaming fellows.
we should also follow this as a good method ..the reason is malaysian’s are most of the time purchasing a vehicle beyond the reach of themselves ,,without them realizing it..this is due to the lower monthly payment and interest rates up to 9 years of repayment period..for example if a person with RM2000 salary ,should not purchase a RM60000 worth of perodua myvi..Rather the person should buy the cheaper perodua viva instead ,,and spend the extra money to buy a house perhaps..this new method of singapore is a welcomed idea for the benefit of people..think…
RM2K salary buy house? which kampung house are you refering to? RM2K can go rent room only la.
allow me to make some changes…
(a person with RM2000 salary ,should not purchase a RM60000 worth of honda city..Rather the person should buy the cheaper perodua myvi (at maybe RM30k+) instead ,,and spend the extra money to buy a house. Why I said so, my vw golf and honda stream’s CIF/customs value are approx RM45k each. How much do you think the cost of a Myvi is? )
QUOTE:
we should also follow this as a good method ..the reason is malaysian’s are most of the time purchasing a vehicle beyond the reach of themselves ,,without them realizing it..this is due to the lower monthly payment and interest rates up to 9 years of repayment period..for example if a person with RM2000 salary ,should not purchase a RM60000 worth of perodua myvi..Rather the person should buy the cheaper perodua viva instead ,,and spend the extra money to buy a house perhaps..this new method of singapore is a welcomed idea for the benefit of people..think…
The only thing that needs to be done in Malaysia is change the current rulling party! Period!!
That seems to be impossible. Anyway I will vote for the Opposition for the good of Malaysian future.
Need I say more ? even motorcycles here are tax heavily …if you are a average wage earner don’t go beyond ur budget no matter how tempting is the new adult toys !!
there is no reason to impose taxes on motorcycles, except maybe sales tax 10% (which ironically should be the basic transportation for the low income group/students).
except maybe to protect Kriss?
if y’all wan put 50% downpayment to your car and ikat 5years loan then please proceed. nobody cares.
but how about an average family want to buy rm40k saga but doesn’t have rm20k for downpayment? did you care? do you wanna help? no rite? so, shoo.. dont reacts like a rich bastads..
poor people should sit bus. they have no choice. who ask them not to work hard or smart enough to earn money?
Voting system is a goner.
We Malaysians are more fortunate than our friends down there, yet we still complain, complain, complain… and dreaming that changing the ruling gov will make everything better. They are all the same, BN or PKR.. Politicians will always be politicians.. Dream on…
Politicians from both sides are the same.. They care more about themselves than the rakyat. I don’t think the car ownership will go down no matter who controls the country in the future. not in 5-10 years time.
Seriously, I didn’t want the price of car to be cheaper, I just want to stop the fat lady shopping spree.
There is no need to impose any new loan rules. The current BN rule already limits total loans (house + car etc) monthly repayments to one third of NET income. That itself will make sure the buyer can afford the car. As for the car prices, I agree with the idea that all import/excise duties be removed and subsidies on fuel to be removed too. That will make for a more efficient system of tax collection. The more you use, the more you pay.
Agreed.. And we need to have VAT introduced as well on luxury items. As of now, the price of cameras, handbags etc in malaysia are the cheapest in asia.
how to use public transportation in malaysia if the taxi drivers r tuuuuuuuuuuuuuuuuuut!
When it comes to cars, I pity the Singaporeans. IMO, cars seems a luxury for the Singaporeans. With the limitation of land to drive and space to park their cars, they cannot indulge their love of cars. I rarely saw classic cars on the road. The reason could be that the COE was so high for keeping the old car on the road, it wasa not worth it.
On that note, did any of you classic VW Beetle fans notice that the some VW Beetle models in Malaysia do not correspond to the correct year of the number plates that are on the cars. For example a post 1968 VW model has a pre 1965 selangor plate. I think this could be Singapore cars that have been brought here.
really.. u guys are recommending the gov to better the public transport?
but when the gov suggested the mrt project, what sounded? cronies.. songlap.. all other thing..
typical malaysian… buat salah.. x buat pun salah..
open tender my friend
Dream on friends… Changing government will not help bringing car price down… Politicians are all jokers… PR belum menang already started to stop LRT n MRT in selangor… So what u think? PR = Pure Rubbish
less money spend to buy sharizat cow condo…more money to spend on public transport..BN-BRIBERY NATION
The best and efficient public transport is bus not MRT/LRT. I highly recommend that government improve the bus service and impose max car loan to 60%. Not like 90% now.
u love BN so much? see what BN is doing? no offence in racial issue but when mat rempit do wrong, they will got released. malay do wrong tak ape. always target the minorities. and what happened in Lahad Datu? even i hated PDRM. but our special force died in vain in Sabah is a very bad move from our G not acting accordingly.
Kawan kawan, credit is a drug. I am an addict and so are many of us. At least org kiasu ni aware. Its a bubble. If we not careful, may end up worse than 1997.
Imagine, 90% car financing for 9 years. Per accounting policy useful life baru 5 years. Habis credit quality macam mana?
But agree lets get to the root of the matter. Is all this because we are feeding invisible hands?
i strongly encourage the government to implement this in Malaysia. Hopefully a few high income earners like me can only drive and not many cars on the road. therefore no jam. i know butthurt poor ppl will dislike my comment. but who cares?
This is a typical kiasu attitude. comments clearly show how his/her brain operates. “As long as I benefit, I don’t care about the others maaa”
You Malaysian’s should be thankful that the banks are offering a loan tenure of 9 years, so the poor can still afford a second hand car. Can’t you people see that? All you all know is complain… complain… complain… One day when the government introduces this policy for Malaysia, you people will be furnishing a car loan through you butts. Your income is only RM2000 a month? Who told you not to study when you needed to, your grandmother? I am a fresh graduate, an Architect. I earn RM3200, and that is more than enough for me to live within my means. What car do I drive? A Kia Optima K5. That’s right. A Kia Optima. You people should be happy that the government is giving a wide range of years to furnish the loans, at a very low interest rate for new cars. “the car will give problem before you furnish the loan mah!” Who cares? that’s the individuals decision. At least they’re thinking about the people who have a low income. Maybe you people should go and live in singapore? Then come back to “bolehland” and complain complain complain. Why don’t you move to Africa and then come back to Malaysia realising how lucky you are? 4 lane highways, Ok roads, you’re paid well(if qualified, of course) no civil war, drought, famine etc… Seriously, think about it. Malaysia won’t progress if we keep on dwelling about cost of things. Want to complain about cost of living in Malaysia? Come to a European country, and you’ll get a real taste of high cost of living. At least in Malaysia, it’s easy to make money. Just open a roadside stall, and you’ll get RM1000-3000 a month. So quit complaining, and get on with your life.
RM3200 salary buy K5. Father buy for you is it? or are you paying through ur nose with 9 years loan?
another noob trying to teach ppl but earn low salary.
Actually no, I’m paying it in 7 years, and NO, I’m self sufficient. What are you on about? Don’t make assumptions about other people you Chinese faggot.
THIS IS A CORRECTED VERSION***
THE MISTAKE WAS THE K5 BIT. I ACCIDENTALLY TYPED THE WRONG THING IN.
This is a typical kiasu attitude. comments clearly show how his/her brain operates. “As long as I benefit, I don’t care about the others maaa”
You Malaysian’s should be thankful that the banks are offering a loan tenure of 9 years, so the poor can still afford a second hand car. Can’t you people see that? All you all know is complain… complain… complain… One day when the government introduces this policy for Malaysia, you people will be furnishing a car loan through you butts. Your income is only RM2000 a month? Who told you not to study when you needed to, your grandmother? I am a fresh graduate, an Architect. I earn RM3200, and that is more than enough for me to live within my means. What car do I drive? A Kia Optima. That’s right. A Kia Optima. You people should be happy that the government is giving a wide range of years to furnish the loans, at a very low interest rate for new cars. “the car will give problem before you furnish the loan mah!” Who cares? that’s the individuals decision. At least they’re thinking about the people who have a low income. Maybe you people should go and live in singapore? Then come back to “bolehland” and complain complain complain. Why don’t you move to Africa and then come back to Malaysia realising how lucky you are? 4 lane highways, Ok roads, you’re paid well(if qualified, of course) no civil war, drought, famine etc… Seriously, think about it. Malaysia won’t progress if we keep on dwelling about cost of things. Want to complain about cost of living in Malaysia? Come to a European country, and you’ll get a real taste of high cost of living. At least in Malaysia, it’s easy to make money. Just open a roadside stall, and you’ll get RM1000-3000 a month. So quit complaining, and get on with your life.
Well,
Work in Singapore but live in JB
Problem settle lor
Travel by train also can in the near future
Singaporean should buy property in JB
It is logical for the Singaporean government to introduce this measure as the rising number of cars will make the island country crowded. However, they can afford such a “luxury” as their public transport system is one of the best in the world if not the best. It is holistic and extremely reliable (safe for a few hick ups few weeks back). people can literally go anywhere in the island without ever needing to own a car.
If the same policy is introduced in Malaysia with current state of tax, price and public transportation, we should cry foul. Imagine if you live in Bukit Beruntung and work in KL. How can you get to work on time with the dismal public transport system that we have?
cant have it here in Malaysia even shorter term is actually benefiting us in long term. but in Malaysia, there are certain group of ppl who doesnt live with their mean and always dont pay loan on time. and which G wanted to always help. sigh.. pity our own system and majority citizen’s mentality.
It is bitter but it is medicine for our own good. Malaysia already introduced control before Singapore when Bank Negara introduce “the total commitment cannot exceed 2/3 NETT Income rule”. In fact the BNM rule is better as it control all sorts of loan i.e. car, house, personal etc. I know they faced with a lot for rejection but I stand by Bank Negara in this particular matter.
i don’t mind all the car tax and all as long as the government set up a comprehensive and efficient public transport throughout malaysia. i used to live in london and only use my car during weekend drives.
This is a typical kiasu attitude. comments clearly show how his/her brain operates. “As long as I benefit, I don’t care about the others maaa”
You Malaysian’s should be thankful that the banks are offering a loan tenure of 9 years, so the poor can still afford a second hand car. Can’t you people see that? All you all know is complain… complain… complain… One day when the government introduces this policy for Malaysia, you people will be furnishing a car loan through you butts. Your income is only RM2000 a month? Who told you not to study when you needed to, your grandmother? I am a fresh graduate, an Architect. I earn RM3200, and that is more than enough for me to live within my means. What car do I drive? A Kia Optima K5. That’s right. A Kia Optima. You people should be happy that the government is giving a wide range of years to furnish the loans, at a very low interest rate for new cars. “the car will give problem before you furnish the loan mah!” Who cares? that’s the individuals decision. At least they’re thinking about the people who have a low income. Maybe you people should go and live in singapore? Then come back to “bolehland” and complain complain complain. Why don’t you move to Africa and then come back to Malaysia realising how lucky you are? 4 lane highways, Ok roads, you’re paid well(if qualified, of course) no civil war, drought, famine etc… Seriously, think about it. Malaysia won’t progress if we keep on dwelling about cost of things. Want to complain about cost of living in Malaysia? Come to a European country, and you’ll get a real taste of high cost of living. At least in Malaysia, it’s easy to make money. Just open a roadside stall, and you’ll get RM1000-3000 a month. So quit complaining, and get on with your life.This is a typical kiasu attitude. comments clearly show how his/her brain operates. “As long as I benefit, I don’t care about the others maaa”
You Malaysian’s should be thankful that the banks are offering a loan tenure of 9 years, so the poor can still afford a second hand car. Can’t you people see that? All you all know is complain… complain… complain… One day when the government introduces this policy for Malaysia, you people will be furnishing a car loan through you butts. Your income is only RM2000 a month? Who told you not to study when you needed to, your grandmother? I am a fresh graduate, an Architect. I earn RM3200, and that is more than enough for me to live within my means. What car do I drive? A Kia Optima K5. That’s right. A Kia Optima. You people should be happy that the government is giving a wide range of years to furnish the loans, at a very low interest rate for new cars. “the car will give problem before you furnish the loan mah!” Who cares? that’s the individuals decision. At least they’re thinking about the people who have a low income. Maybe you people should go and live in singapore? Then come back to “bolehland” and complain complain complain. Why don’t you move to Africa and then come back to Malaysia realising how lucky you are? 4 lane highways, Ok roads, you’re paid well(if qualified, of course) no civil war, drought, famine etc… Seriously, think about it. Malaysia won’t progress if we keep on dwelling about cost of things. Want to complain about cost of living in Malaysia? Come to a European country, and you’ll get a real taste of high cost of living. At least in Malaysia, it’s easy to make money. Just open a roadside stall, and you’ll get RM1000-3000 a month. So quit complaining, and get on with your life.
ayyoo…earned just rm3200 but drive K5? he must be the architect for ‘stadium runtuh’ at terengganu
Sorry, my bad. It’s the old 2005 Kia optima, not the K5. I was thinking about that car when I was writing this comment. Seriously? You think I can afford a K5 with my salary? Banks won’t even approve it. Some of you would say ” he buy optima to impress people” we’ll I didn’t. I can afford it, I buy it. I’m paying rm670/month for 6 years. I am definitely living within my means. If I own the latest K5, half my salary would have vanished. Would be the case of lanja* pun tak Ada cukup
hey can i be your step brother? your parents must be paying for your food, accommodation, and *insert whatever a human NEEDS here* for you to own a Optima K5 with RM3200.
rm3200 K5? Thank your parents for your good life k.
Let’s compare your high living cost argument.
Example: An engineer, net income.
Salary: 3,000euro vs 3,000rm
Car (k5): 27,000euro vs 150,000rm
McDonald: 5euro vs 10rm
Rent: 500euro vs 10000rm
Who’s living cost is higher? Don’t tell me need to convert currency, even if convert currency, the money one would have at the end of the month would still be more than what you’ll have. If in europe you only earn rm3000, then you can tell me that’s high living cost.
There are hardworking people in Malaysia too but they aren’t as lucky as you are. Best of luck for the rest of your journey in your life.
I typo the rent cost, should be 1,000rm, not 10k. Lol.
Wahai kawan kawan. Waktu I grad dulu gaji baru rm1.2k. Naik bas mini je. Budak2 sekarang bawa k5?Bertuah betul atau ………..
Exactly what I was saying. I saw what happened in 1997 and it was not pretty. Its history repeating itself. Guys like Why is evidence of that financial bubble. Timbus lubang dgn gsli lubang lain. Hidup umpama roda….ada naik… ada turun dah………
I’m also work as graduate architect with salary of RM5200 monthly but yet, I drive brand new Viva in city for smaller carbon footprint, easy parking, low fuel consumption during trafic jammed.. And sometimes, I ride my faithful Yamaha to work if the weather permits.. And sometimes, I took LRT to work and its fun..
T
I’m also work as graduate architect with salary of RM5,200 monthly with allowance but yet, I drive brand new Viva in city for smaller carbon footprint, easy parking, low fuel consumption during trafic jammed.. And sometimes, I ride my faithful Honda Wave 100 motorcycles to work if the weather permits.. And sometimes, I took LRT to work and its fun.. And for longer distance, I take AirAsia domestic and rent a cab..
The question now is, why waste so much on things for showing people, for status? See the road, its a 1PERSON 1CAR.. Its better to live a modest life according to your pocket..
Buying a home is far more better than buying expansive car that surely stuck in traffic..
Good example, too bad advertising got us chasing dream cars.
Sorry guys, it was a typo. It was the old Kia optima, not the K5. I was thinking abut that car when I was writing this comment. It’s the 2005 Kia optima.
hmm to cater to the average malaysians, may be put some kind of grouping for loan vs car group
a) new car RM40,000 but RM200,000, Max loan 50%, max 3 years.
e) new car setup for companies (not in my agenda….not bothered to suggest)
Just sharing my thought only.
1)The lower income groups are protected/assisted
2)The higher income groups can choose to buy higher end vehicles of their choice based on their financial ability
3)If lesser people buy expensive cars, car dealers will have to reduce selling price to be more competitive..
Win-win situation for consumers but maybe not for banks and car dealers…
haiz….comments truncated.
a)new car RM200,000: Max Loan 50%, Max 3 years
paultan admin,
how come my points a), b) c) and d) are missing when I post? sigh…
new car: below RM40k, max loan 85%, 7 years
new car: RM40k-RM100k, max loan 70%, 5 years
new car: RM100k-RM200k, max loan 60%, 5 years
new car: above RM200k, max loan 50%, 3 years
Note: paultan admin, appreciate if you can update the above info into my 1st post above. this is just too messy.
Funny suggestions is the least and lost-lost situation to the followings: –
“new car: below RM40k, max loan 85%, 7 years”
– This one will kill all the craps Viva, Saga BLM or the like. Low income group, even have the problems to come out with 5% down payments, that why you can see the car dealer come with creative marketing with 100% loan for 9 year!
“new car: RM40k-RM100k, max loan 70%, 5 years”
– This one will kill both Juara Kampung No. 1 and Jaguh Kampung No. 2 for same reason most of buyer even hard press to come out with 10% down payment!
If get RM 75 K loan for 5 year at 4% interest, the monthly installment is RM 1,500.00.
On top of that, your suggestion will make the cronies cry-cry baby!
had wanted to get a big bike again for convenient purpose (for work and travel), and was surprise to know that price has skyrocket like a car.
for the ordinary, it is not recommended for one to take car loan more than 5 year. they will definitely suffer as time past. it is better to put more on a down payment, and take a lesser year on loan.
I think M’sia can consider this move but make it gradual.Too drastic may affect the car market i.e nobody able to buy new cars.Anyway i agree that our car prices is high.Put it this way,if you buy a car and take a full 9 year loan,after 5 years your car will start to need more repairs.Yet at the same time the loan still need to be serviced.This will cost extra burden.Sell it at 5 years,minus the settlement you start at zero again for new car.Neverending loan.
Now if you take max 50% at 5year loan,at 5 years old,your loan is fully paid at you can sell your car at market value and be your downpayment for your new car.And at the same time 2nd hand car value will be better.I know it is easier said than done with our public transportation is severely lacking but think in the long run,less people with debt.
If reducing car duties are not possible, then we should raise our salaries. Fresh grads should earn minimum MYR10k per month gross income. Like in Singapore SGD4k per month for fresh grads. Then we can implement this.
and where did you get this info?
my 6 years experience engineer colleague is only getting around 4K Sing..
Fresh grads are around 2.8K sing..
It’s good to encourage people to use public transport. But how if you are living at the outskirts, for example Hulu Langat? There will be no train passing there. Nearby is the Ampang LRT station and the upcoming Mahkota Cheras MRT station. After all, people in such areas still need cars to go to the train stations, and the answer is REAL-WORLD CAR PRICES!
I totally agree. Car price wont be as cheap as in the us nor canada even if there is no tax. Owning and running a car here is already cheaper than in singapore or thailand or indonesia. I just came back from thailand, petrol price is damn crazy expensive and that is only for ron91. While my friends in singapore is complaining high coe in the pulau singa, if I am not mistaken coe itself cost him 120k not yet +the already expensive car price, I hope I didnt misheard him. I guess malaysians are luckier. I support government to impose exxpensive car tax for luxury cars so we can transfer the money to the needed one. I support the effort to make peoples car more affordable. Those who want luxury can pay more tax.
Gov should make local car to be affortable. the problem even proton and perodua is cost more than 50k. There should be no tax for local car. and low tax for low end foreign car. Impose high tax for only luxury car.. If the car price lower, ppl can reture the loan tenture and have better finance.
Well said!
THIS IS THE CORRECTED VERSION******
I AM HAVING A 2005 KIA OPTIMA, NOT THE LATEST K5*****
This is a typical kiasu attitude. comments clearly show how his/her brain operates. “As long as I benefit, I don’t care about the others maaa”
You Malaysian’s should be thankful that the banks are offering a loan tenure of 9 years, so the poor can still afford a second hand car. Can’t you people see that? All you all know is complain… complain… complain… One day when the government introduces this policy for Malaysia, you people will be furnishing a car loan through you butts. Your income is only RM2000 a month? Who told you not to study when you needed to, your grandmother? I am a fresh graduate, an Architect. I earn RM3200, and that is more than enough for me to live within my means. What car do I drive? A Kia Optima. That’s right. A Kia Optima. You people should be happy that the government is giving a wide range of years to furnish the loans, at a very low interest rate for new cars. “the car will give problem before you furnish the loan mah!” Who cares? that’s the individuals decision. At least they’re thinking about the people who have a low income. Maybe you people should go and live in singapore? Then come back to “bolehland” and complain complain complain. Why don’t you move to Africa and then come back to Malaysia realising how lucky you are? 4 lane highways, Ok roads, you’re paid well(if qualified, of course) no civil war, drought, famine etc… Seriously, think about it. Malaysia won’t progress if we keep on dwelling about cost of things. Want to complain about cost of living in Malaysia? Come to a European country, and you’ll get a real taste of high cost of living. At least in Malaysia, it’s easy to make money. Just open a roadside stall, and you’ll get RM1000-3000 a month. So quit complaining, and get on with your life.
THIS IS A CORRECTED VERSION***
THE MISTAKE WAS THE K5 BIT. I ACCIDENTALLY TYPED THE WRONG THING IN.
This is a typical kiasu attitude. comments clearly show how his/her brain operates. “As long as I benefit, I don’t care about the others maaa”
You Malaysian’s should be thankful that the banks are offering a loan tenure of 9 years, so the poor can still afford a second hand car. Can’t you people see that? All you all know is complain… complain… complain… One day when the government introduces this policy for Malaysia, you people will be furnishing a car loan through you butts. Your income is only RM2000 a month? Who told you not to study when you needed to, your grandmother? I am a fresh graduate, an Architect. I earn RM3200, and that is more than enough for me to live within my means. What car do I drive? A Kia Optima. That’s right. A Kia Optima. You people should be happy that the government is giving a wide range of years to furnish the loans, at a very low interest rate for new cars. “the car will give problem before you furnish the loan mah!” Who cares? that’s the individuals decision. At least they’re thinking about the people who have a low income. Maybe you people should go and live in singapore? Then come back to “bolehland” and complain complain complain. Why don’t you move to Africa and then come back to Malaysia realising how lucky you are? 4 lane highways, Ok roads, you’re paid well(if qualified, of course) no civil war, drought, famine etc… Seriously, think about it. Malaysia won’t progress if we keep on dwelling about cost of things. Want to complain about cost of living in Malaysia? Come to a European country, and you’ll get a real taste of high cost of living. At least in Malaysia, it’s easy to make money. Just open a roadside stall, and you’ll get RM1000-3000 a month. So quit complaining, and get on with your life.
We should tighthen our loan policy, especially household loan, be it car loan or housing loan.
With insanely price increase in property these few years, most of us are still renting house. I find property advertisement “why rent when you can own one” is very sarcastic when house buyer now is allowed to have housing loan of, what, maximum 35 years? If I were to start work at 25 years and borrow housing loan, I only can pay off my housing loan when I retire at 60 years old? It’s like I work my whole life for a petty 1,000 square foot house?
Don’t get me start with car loan. Buying car, be it brand new or second hand, is a high commitment for an average Malaysian. Besides monthly car loan instalment, you are committed with high fuel cost(high consumption due to severe traffic jam with automatic transmission car), regular maintenance for wear and tear, tyres and most of all, annual car insurance. When I get my pitty monthly salary after deducting income tax reluctantly, I am forced to use up half if not most of my salary for a so called national car that serves 9 years loan? By the way, I am forced to obtain car loan from bank so that government can collect more tax from me, with interest some more? I am not even talking about getting married, raising kids and supporting family expenses, buying insurance not only for myself but for my kids’ medical, education and life insurance?
RM3K for a guy living at city is considered poor, do you know that? I am complainting because the current government is not doing their job, in fact, they did a pits poor jobs in the past 50 years or so. Between fuel subsidy and exercise duty, I will choose to pay fuel by market price but buying car at world open market price after converting foreign currency into RM.
Think about yourself and your children. Think carefully.
Who asked you to get a brand new proton and have a high commitment? You can always get an old proton or an old merc? RM 20000 can get you a good enough second hand car from the 90’s. think about your children. Yeah right. Don’t blame the government for your so called low salary, it’s actually enough to live on. It’s your priorities which is wrong. Why would you pay that much for a proton? Get a second hand car? There are so many cars out there that are reliable too. Maybe it’s time you sell of your proton and save some cash for a house or for yourself?
wow! when you speak about the G’s fault for the past 50 years, you must be more than 50 years old then. Otherwise how do you know about what the G had done for the past 50 years then.
Yup, you always have a choice..buy new or from the secondhand market but if you had chosen to buy new and for 9 years, why complain? You could have bought second hand..
You are dishing out advice as if you have lived that long in the world, naaah..you haven’t seen it all yet kid! Be thankful with what you got..it doesn’t mean that a new one will be better you know..
i m glad my parents didt buy expensive cars when they were younger, they kept buying property over and over again. and now i get to enjoy riding nice cars after selling their assets :) . planning to sell another house to get a r8 or maserati granturismo
i notice many poor child nowadays are poor due to the result of their parents wasteful spending ! and poor money management. firs they bought nissan sunny for 20k or 30k, then several years later after their sunny became obsolete they upgraded to corrola for 40k! several years later same thing happened so they upgraded to civic for 60k, and yet it still continues on several years later when they upgraded to accord for about 80k… and now they reach the present time they can only afford a vios for 90k ,which is lower class than their previous cars! LOL! while staying in their house that they bought 40-50 years ago at about 40k which is only worth around 100k now LOL……. can u see? if u cant afford expensive cars blame ur parents LOL. if u die before u can buy expensive cars blame yourself LOL.
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