The National Automotive Policy (NAP 2014) that was announced yesterday evening is a hot topic and the subject of much debate amongst industry players and consumers. Its aims include making Malaysia an Energy-Efficient Vehicle (EEV) production hub for the region, liberalising the local car market to create one that is more competitive and sustainable, as well as promoting local value-added activities and exports.
To that end, a fair number of strategies have been outlined. Most are mid- to long-term; few go into any significant depth. Still, let’s sit back, consider the main points and discuss the probability of their effectiveness (or otherwise) in dealing with the challenging future of the nation’s automotive landscape.
Energy-Efficient Vehicles (EEV) and “customised incentives”
Central to many of NAP 2014’s points is the official introduction and definition of the EEV, which grants carmakers that manufacture them locally “customised incentives.” The EEV classification takes effect immediately.
Regardless of the technologies or method of propulsion used (be it petrol, diesel, hybrid or electric), a car can be classified as an EEV if it meets or performs better than a set fuel economy figure (measured according to the UN ECE R101 standard and expressed in litres per 100 km) for its kerb weight (expressed in kg). For two-wheelers, kerb weight is substituted by engine size.
All well and good, but who will test the fuel consumption of these vehicles? Malaysia does not currently have any certified facilities for this purpose. MITI says such facilities can be privately set up, creating business opportunities, but clearly this will take time, leaving an indeterminate interim period of uncomfortable uncertainty for carmakers. And how does one go about getting economy-testing certification?
Then there’s the business of “customised incentives.” They come in the form of Pioneer Status, Investment Tax Allowance (ITA), grants, infrastructure facilitation, lower taxes and expatriates, all accomplished without any investment conditions. But exactly how much localisation or value-added activities will a carmaker have to carry out, and how much will there be in terms of incentives? Your guess is as good as ours for now.
The lack of transparency in this matter is of concern to industry players. The last two NAPs were relatively more clear in terms of explaining what kind of incentives were going to be given.
In a pre-announcement briefing with the media last week, MAI CEO Madani Sahari explained that despite the incentives being “customised,” players that were serious on making an investment in the country had no issues with approaching them for discussion. That would imply that a lot of the dissent would be from players that are not really interested, but just want to comment.
At first glance it sounds a lot like how B2B sales is normally carried out – talk to your account manager and depending on your relationship and how well you bargain, you might end up getting a better deal. But is this really how a government should be approaching its policies?
This “customisation” is nothing new really. Even though the last two NAPs specified clearly what kind of hybrid vehicle are able to obtain exemptions, BMW Malaysia successfully got a partial exemption for its ActiveHybrid range of cars, which have 3.0 litre capacity engines. This was certainly not part of the NAP at that time, which stipulated duty exemptions for cars with hybrid engines of less than 2,000 cc in capacity. That’s ‘customisation’ right there.
There’s also the Nissan Serena S-Hybrid, which is not really a hybrid at all, but essentially an MPV with a regular combustion engine with a beefed up alternator and additional power storage. That is just stretching the meaning of ‘hybrid’.
Comparison with Thailand’s Eco Car programme
Our northern neighbours’ Eco Car programme has conditions that are more specifically and rigidly laid out – Phase 2’s requirements include a fuel economy under 4.3 litres per 100 km, CO2 emissions under 100 grams per km, engines displacing 1.3 litres and under (petrol) or 1.5 litres and under (diesel), plus Euro 5, R94 and R95 compliance.
Also, a minimum investment of 6.5 billion baht (RM658 million) and a minimum production of 100,000 units per year are required. The excise duty incentive given is 14% (normal 30%), and if the engine is E85-compatible, 12%.
Our EEV classification is more liberal. Incentives given do not depend on engine capacity or propulsion method, so even vehicles that return a fuel economy of up to 12 litres per 100 km can be granted EEV status (providing they weigh between 2,351 and 2,500 kg, in this particular case). No minimum investment or minimum annual production required, either.
But we know the Eco Car programme’s incentive amounts, expressed as percentages, so there can be no dispute. Because the incentive amounts have not (yet?) been revealed for our EEV programme, we don’t exactly know how much carmakers will get.
Comparison with Indonesia’s Low-Cost Green Car programme
For Indonesia’s Low-Cost Green Car (LCGC), fuel economy on the New European Driving Cycle must be 20 km per litre and up. Petrols must displace between 1.0 and 1.2 litres while diesels must displace between 1.0 and 1.5 litres.
Then there’s price – excluding ownership transfer fees, vehicle tax and local tax, the car must not be priced above 95 million rupiah (RM26,300). Once a vehicle satisfies all of the above criteria, it is granted LCGC status and is tax-free.
No Euro standard or safety regulation is mentioned, but a Low-Carbon Emission Project (LCEP) enhances the programme to include all propulsion methods, without any price conditions or limits to engine size. The tax reductions under LCEP are 25% for 20-28 km per litre vehicles and 50% for 28 km per litre and up. Electric vehicles are tax-free.
To sum up, if a vehicle is a 1.0-1.2 litre petrol or a 1.0-1.5 litre diesel, costs under 95 million rupiah and can return 20 km per litre or better, it is an LCGC and tax-free. If the vehicle’s engine is any bigger than those limits, it then relies on LCEP for tax breaks (providing it can still return a minimum of 20 km per litre).
Again, the incentive amounts here are made known.
Excise duties and the Car Price Reduction Framework
Under the CPR Framework, MITI says car prices will gradually go down in the next five years, culminating in a total price reduction of between 20-30% by 2017. This will not happen through cutting or abolishing excise duties (which provided the government with RM7.3 billion in revenue last year) – at least not for now – but rather, through increased competition brought about by the liberalisation of the industry, which could also see more OEMs entering the market.
We can see where they’re coming from, but if the incentives awarded (which could result in lower car prices for the consumer, albeit indirectly) are going to be “customised,” the probability of an uneven playing field emerging is higher, which could put off prospective OEMs as well as upset a few existing ones. If the details of the incentives given were made transparent and clear-cut, this will go a long way towards boosting competitiveness and true liberalisation.
Approved Permits – status quo for now
Open APs are responsible for Malaysian roads being flooded by grey import cars from right-hand drive countries like the UK and Japan. It doesn’t really affect the majority of the Malaysian public who buy cars under the price of RM100k. These Open APs are used to bring in cars like the Toyota Estima and the Toyota Alphard which are purchased by the upper middle-class.
However, it does affect industry players in a way that it hinders market share and investment by the luxury segment. You cannot ignore the luxury segment as in the end the players have CKD operations and they employ Malaysians in the entire chain of operations, from assembly to sales and marketing, to aftersales.
This is because there is a massive number of grey import Audi, BMW and Mercedes-Benz being brought in through Open APs. These models are the same models that are being sold by the principal companies here in Malaysia, who have invested in the homologation process as well as built a support network for these cars. It wasn’t always this way. It used to be that Open APs were only able to be used for the import of models that were not assigned to Franchise AP holders, but this restriction was removed in 2007.
You may think the 3% of TIV limitation is an adequate safeguard. However, measuring it against total TIV is misleading – the TIV for 2013 was 652,000 units. Three percent of that is 19,560. But think about it. BMW Malaysia sold about 7,000 BMWs in 2013, while Mercedes-Benz Malaysia sold 5,809 cars. That’s already about 13,000 cars from these two brands alone, which make up a huge chunk of the luxury segment. If you include Audi and Lexus, estimated at about 2,000 units each, as well Infiniti and the other brands, in the final reckoning the total numbers would be close.
It’d be obvious to state that Open APs are depriving luxury brands of potential market share, and its continuance will be something that will discourage further investment in the country.
Voluntary Vehicle Inspection
There was no mention of the Vehicle End-of-Life policy in NAP 2014, but a Voluntary Vehicle Inspection (VVI) is being proposed. This will involve cars over five years old, in a bid to keep vehicle roadworthiness in check nationwide and improve road safety.
Inspection centres will not be limited to any one agency or company like Puspakom, but we don’t know how many companies will be appointed or the procedures for certification.
Voluntary though they might be, the inspections will, of course, not be complimentary. Some kind of incentive would therefore be given – the word on the wire is some kind of road tax rebate, if your car passes the inspection.
The UK’s MOT system checks vehicles over three years old for lighting, steering, brakes, tyres, seat belts, body structure, exhaust, fuel and emissions. It is mandatory. An MOT certificate lasts a year, after which the vehicle needs to be retested. Without a valid MOT certificate, the vehicle is not UK road-legal.
An ASEAN equivalent is Thailand’s TorRorOr document. Cars older than seven years and motorcycles older than five years have to pass an annual safety inspection in order to be issued with this document, without which the annual tax sticker cannot be renewed.
We’re not quite there yet, but the VVI, if carefully planned and implemented, represents a step in the right direction towards a safer and more mature auto environment.
It look like “playing UNO” cards, no body knows what next & if ever u hit the right card **SNAP** & SHOUT UNO!!!!
Let just say: FORGET the whole “sweet” thing everybody. Government revenue is NOT going to be jeopardize. If “any of you” comfortable every month earning RM20K/month, then suddenly company say from next month onwards your salary is RM15K/month, what will you do?
If G really serious competing & without “protecting” anyone, 20yrs ago they have done so!
NAP,AP,etc…. whatever not need to highlight so many times.
Where is Najib’s promise of 30% reduction in car prices over a period of 5 years? Najib promised before the election that if we voted for him and BN, he would ensure that he would match PKR’s offer to reduce car prices. Najib himself quoted saying that the BN government would reduce car prices by up to 30% gradually over 5 years and we should trust BN. Infact he said BN always keeps to their word. 7 months have passed and nothing has been done. He promised last year!
Infact companies like Toyota and VW have increased their prices. Does not matter now whether a car is EEV or ELV. What matters now is where is Najib’s promise?
Madani, please ask your boss Najib to honour his promise. This basic thing also MAI cannot do, how can the rakyat trust MAI and the BN Government?
The reduction in your chart is Superficial. Got no meaning at all or any real savings to the rakyat. It is unfair, while we rakyat are told to eat Kangkung, the Minister’s wives are buying Birkin handbags costing RM100,000 each. And that also one person got berpuluh puluh Birkin handbags.
And the AP robbery is still going on. 30 Million rakyat suffer just to benefit 20 or 30 crony AP holders, all related to the Ministers.
We are like Sarawak now. Taib has berbuluh billion USD (proven) and yet the people live in poverty. Semenanjung is now the same. Menteri kaya raya while the rakyat susah payah sampai even with 3 jobs just to feed our children.
Now that NAP has shown the government’s intentions, it’s pretty clear they are no help at all to be rakyat nor will they ever be. So, if the rakyat really want/need a better M’sia, vote these buggers out. Peace :). May Al…i mean God bless us all raykat.
Yeah..
“So Where We Go From Here?”
We go to no where.
Stay putt..
Make the best of our daily life..
Price go up or price go down eventually car still being sold/register each day…
Just like when near 80sen hike of petrol back in mid 2008; still everyone drive here and there..
So no need bising2…
No money?
Work extra smart…
Enjoy every $$$$ earn…
Those who work hard don’t get rich. Those who don’t work but partying and cari jalan will get rich. Riches to buy super cars.
We go to jamban and eat kangkung la…..
After luxurious trips round the world using taxpayers money, is this the best you can give??? Idiotic MAI !!!
Where do we go from here?
1. Announce new NAP 2014, promise lower car price in 4 years time
2. Until year 2018 still no car price reduction and also Election year
3. Announce new NAP 2018, promise lower car price in 4 years time
4. Repeat above steps all over again for year 2023, 2028, etc.
You all BN goons, Proton macai can go to hell.
In computer programming, this is called Endless Loop and the program just hangs.
So NAP is hanging.
10 REM TO REDUCE CAR PRICE BY 30%
20 REM BY REVISING NAP
30 GOTO 10
LOL
Kept Looping in the same hole! We smart or G smart ler ?
Cars are most expensive in the world in Malaysia compared to what we earn in Malaysia.
Malaysia’s GDP per capita is one of the lowest in the world and yet the government burden us even further. See how much others earn and yet their cars are so cheap….
Cars are even cheaper in Singapore because the GDP per capita of the Singaporean is 5 times than of Malaysians. So, the guys who buys his Camry in Singapore can pay for his car in 2 years if he takes loan vs 9 years in Malaysia.
Country Average Monthly
in 2012
Malaysia RM5000 (or RM8586 in Kuala Lumpur)
USA US$4251 (RM13965)
United Kingdom £2796 (RM15064)
Singapore S$7570 (RM19551)
These government idiots never heard of the word “shame and honor” yet they still want to continue the look east policy. After 30 years they have not learnt a single thing about the Japan or the Japanese traditions and culture.
The Japanese Prime Minister would have committed ‘hara-kiri’ from the shame for failing to keep his promise.
What can we expect from such a hopeless government that can’t even control the rouge taxi drivers from fleecing the public, stopping the Mat Rempit or the daily snatch thefts.
Our government have no shame nor honor, so instead of committing ‘hara-kiri’ themselves, they would instead ‘hara-kiri’ the rakyat.
Aiyo … If they know the word “Shame” surely won’t be like today liao. “Hara-Kiri” ? No Way! Is more to “Kara-OK” for them :)
Madani from MAI should resign. The Rakyat paying all their Business Class flight trips to all over the world to learn about Motoring and yet they cannot finish this NAP properly
1) Diesel and Euro 4 not done yet
2) AP also not done yet.
So, why are we paying MAI for? Even their slides and press releases also got so many spelling mistakes. They fly all over the world using our tax payers money but yet cannot implement Euro 4 fuel and find a solution to the AP issue. Always postponing and wanting more time to come out with better proposals.
Madani, please lah, do your job. Otherwise, just close MAI. We cannot support fat cats using our income tax money and no results shown.
Also, MAI must ensure that the ruling party’s promise to reduce car prices is met. This also, they don’t do.
The AP system is to protect the 20 or 30 cronies. And because of the 20 or 30 cronies, 30 million Malaysians suffer. These below are the real car prices. They are CBU. Which means, our CKD should be cheaper than the CBU prices as it is Made in malaysia parts. But instead of paying cheaper, we kena pay 3x more the prices.
Somemore, not only we pay 3x the price of cars, our cars are stripped off safety equipment. Only 2 airbags, no VSC, lower warranty etc.
In US, the prices below include 6 airbags, VSC, Tyre Pressure Monitoring etc etc.
Mainstream car prices
Honda Accord 2.4 (CBU)
US$21,480(RM64,440)
Malaysia Price – RM175,000 (CKD)
Honda CRV 2.4 (CBU)
US$22,495 (RM67,485)
Malaysia Price- RM185,000 (CKD)
Honda Civic CBU
US$15,955 (RM47,865)
Malaysia Price- RM115,000 (CKD)
Toyota Altis (CBU)
US$16,130 (RM48,390)
Malaysia Price – RM112,000 (CKD)
Toyota Camry 2.5 CBU
US$22,055 (RM66,165)
Malaysia Price CKD RM180,000
Kia Sorento CBU
US$23,150 (RM69,450)
Malaysia CKD Price RM160,000
Hyundai Tucson
US$19,245 (RM57,735)
RM140,000
Hyundai Sonata
US$20,895 (RM62,685)
Malaysia Price CKD – RM150,000
Hyundai Elantra 1.8
US$16,695 (RM50,085)
Malaysia Price -CKD Inokom RM118,000
Nissan Versa Sedan 1.6 (CBU)
US$11,990
Malaysia Price ??
Luxury car prices
BMW 328i
US$36,500 (RM109,500)
Malaysia Price – RM300,000
BMW 528i
US$46,900 (RM149,000)
Malaysia Price RM420,000
BMW 535i
US$52,500 (RM157,000)
Malaysia Price RM600,000
BMW X5
US$47,500 (RM142,500)
Malaysia Price RM580,000
Mercedes E350
US$51,000 (RM153,000)
Malaysia Price – RM420,000
In M’sia for only CKD E250)
Jaguar XF
US$53,000 (RM159,000)
Malaysia Price RM500,000
Porsche Cayenne
US$48,850 (RM146,000)
Malaysia Price RM570,000
you are right. In Taiwan the new Toyota Altis is about NTD780,000(CKD) =(RM85,900) Malaysia price RM114,000.
While it may be convenient to make such comparisons, you can’t really take car prices in the USA as a valid measurement for so-called ‘real’ prices.
Car brands in the USA have huge sales volumes. The ones here don’t. To manage the whole sales and aftersales operation, the profit/revenue margins will have to be considerably higher than the same companies in the USA.
Precisely because the American market’s sales numbers are much greater compared to the same models sold in Malaysia, carmakers in the USA can charge less for each model (and gain less margins per car), but still maintain a huge profit.
Yes, it makes for a sensational story, direct comparisons like above, but that’s done without really taking into account the stark differences in business plans and profit margins involved in the two markets.
Car prices in Malaysia are high, even ridiculously so, but not to the extent of the numbers above.
Yes, it makes sense to judge on the volume of demand in the US as a factor to determine lower car price there. I bet, if you really study in great detail it ain’t always the case. Take Brunei for example, the whole country population is very close to Miri alone. So why their car price still cheap. My ex is driving a BMW X1, that car only cost 60% (after convert to MYR) of the actual price u get in Malaysia.
It’s the goverment who make citizen suffering here.
Even Brunei with smallish tax cannot price like that..let alone rest of ASEAN..eg Brunei Camry 2.5 B$53k ~ RM140k
Maybe we should start driving on left side. Since those car cheaper?
Aiyoo, betul betul otak udang. Brunei GDP Per Capita is abt 5 times more than Malaysia. That means, a Camry buyer can pay off his loan in 1 or 2 years maximum.
Dalam Bahasa Malaysia, orang Brunei atau orang Singapore dapat gaji 5 x ganda dari orang Msia!
For both Thai Eco car and Indo LCGC..oni promote basic car safety..none of the car produce for thai n indo people consumption has good safety equipment..the bargain for that is the car become more cheaper..
It is solely because of Proton our household debt is one of the highest in the world. It is because of Proton that all cars in Malaysia went up in prices since the 90s. In the 90s, you could even buy a brand new Japanese car for RM20,000.
Global prices of cars have not really gone up. Infact, because of economies of scale and technology, car prices globally has actually come down the past 25 years. That is why you can get a top spec Honda Accord 2.4 or Toyota Camry 2.5 for about USD$22,000 (RM65,000)
It is because to protect Proton that the government started jacking up the taxes and duties of ALL cars. They pretend to tax ALL cars which include Proton but we all know lah what really goes on. Proton gets special treatment. Even now, Proton in private hands also, they get hundreds of million free money from the government as grants.
Even every single car in Malaysia cannot sell below Proton price. All car manufacturers must go through MITI before they can sell the car and it is MITI that decides on the final price. UMW and Honda want to sell their Altis and Civic for RM80,000 also, they are strictly told they cannot do so. “You must sell your car at RM110,000 and above,”. That is the reply they get or else, completely no approval to sell their car. If don’t comply, your whole licence will be taken away and completely no APs will be given to you. That is why Mercedes and BMW also so scared. They want to sell cheaper but are threatened that they will be given lesser APs to bring their CKD panels and engines in to form CKD cars.
And it is because of Proton that we have lost hundreds of thousands of jobs. Before Thailand became the Autocity of Asia, Malaysia was the King of CKD and we were on our way to become the Autocity of Asia and even the Autocity of the world. in the 80s and 90s, everybody was CKDing in Malaysia. But because of the nonsense by MITI and Proton, all the car companies decided to go to Thailand.
We lost not only hundreds of thousands of jobs, we also lost hundreds of billions of USD in investments in Malaysia. Maybe even trillions.
All because to protect Proton and the few AP cronies.
Which do you think is better? Save Proton and its crony vendors 30,000 jobs but lose hundreds of thousands of jobs and hundreds of billions in investment that could have gone to schools and hospitals, transport etc?
Brunei Toyata Camry 2.5 B$53k ~ RM140k..can u explain that?
Kzm, think of Brunei in the future, read about their economy for the past 20 years, let’s see what will happen in the next x years of they never change!
I know I oso read bout their shrinking economy coz too dependent on oil revenue
kzm, is this what they teach you in Mara or Utim?
Brunei GDP Per Capita is abt 5 times more than Malaysia. That means, a Camry buyer can pay off his loan in 1 or 2 years maximum in Brunei vs in Malaysia, we pay 9 years.
Dalam Bahasa Malaysia, orang Brunei atau orang Singapore dapat gaji 5 x ganda dari orang Msia!
Brunei economy is not shrinking, they got brilliant investments all over the world.
Their graduates don’t come from uitm or Mara like yourself
But average Brunei people earn RM15,000 per month.
Malaysians average RM4000?
Lol boleh never was true CKD king of ASEAN…thai is CKD king since 70’s to mid 80’s and from 90’s till now…most CKD number of boleh in 80’s contribute by the company u cursing now…this period where boleh gov proclaim that bolehland is CKD king..in the 90’s most CKD was fr p1 n p2..1998 production boleh – 266k thai – 360k, 1990 boleh – 191k thai – 304k, mid 80’s boleh 104k thai – 73k, 70’s boleh – 0k thai – 22k..this u can find in IOCA website n World Motor Vehicle Data 2007 book
This what happens when people fail in their studies and yet go into university.
It’s more towards the cronies instead of Proton.
It’s the free money into the pocket system/process.
It’s not attractive for foreign investors, a bad policy will have bad impact in the future, the country will definitely feel it in the future.
It’s not attractive to the people, we just need more affordable cars, with great safety features.
If the gov can push their plans through, proton will be in trouble.
Are proton cars fuel efficient? No.
Are proton cars emission friendly? No.
yup, ur right. prtn cars currently not fuel efficient,but they r atleast euro 4 compliant since campro ever existed. but current cfe n iafm are euro 5,n upcoming nfe also euro 5.
even most toyota sold here euro 2 n euro 3 emmision compliant. you read paultan,but dont really read thoroughly.
im not saying toyota dont have euro 5 engine n they even have euro 6 engine. but for malaysia in context,they r polluting the air more than prtn. they never care bout our lives,let the alone the air in here.
about fc,eventhough suprima combined fc is high,but atleast not far away from real fc. if u look out for other manufacturers published combined fc,its super efficient,but in real life driving in malaysia,the owners never get even closed with the cmbine fc,n even some nearly twice than the published combine fc.
read the owners forum or club. compare with the published figure,its misleading. mostly fc that r not far away from the published is highway fc.
look up for elantra,focus n etc cmbined fc figures,n look up from the owners forum the real one. almost twice. hway fc,ok,not far away.
so dont put your trust 100% on manufacturers figures,even for well known. its not the same as published coz the figure based on cntrol cndition n even being tested diff from malaysia environment n market cndition.
just notice paul mentioned tax in thailand,around 30%,but if we take for example same variant n same spec vios, the diff around 10k. n in malaysia,accumulated tax for vios is 85%. the diff in tax is 55%. so do 55% diff is 10k only,or toyota really sold it at higher profit at its hometown as most toyotas for asean market come out from thais plant. i pity those thais being conned by toyota.
but in malaysia,we r conned by both. the Gov n toyota. :-).
the question is,if prtn closed, the tax remain, do u think the manufacturer reduced the price?based on thailand vios case, i think, the price will jack up. not reduce. i think if excise duty being reduced to 30% as in thailand,that a massive 55% reduction,vios price only lower by 10k,same price as in thailand. so,still being screw by them. damn.
Better out your facts bro., on proton emission standard..
I’m not an advocate of “close this down, close that down”. I believe that once a system is in place, messing with it will only bring bad effects. And proton has been around long enough that to close it down will mean chaos for some time.
For the record, I have 0 regard for “kimchi” cars, despite their beautiful design, I know it 3-5 years time, they will rattle, squeak and judder like a proton.
And I’m not throwing FC assumptions around, I am a proton CFE car owner. :) I like my car but I really am disappointed with the FC.
we really need to do something to wake up our clueless PM. there is no way in the next few years our car price will reduced. what we can clearly see that hybrid car price will increase soon. excise tax is really a shield for government to take more money from rakyat. there is no policy introduced to lighten rakyat burden. there is only policies to protect the cronies.
Right on the money!
Aih! What to do? This is KangKung Land mar …
If you want progress aim high. If you want to regress please continue what you do.
Very well said. Looks like G just entertaining the people. I’ve heard that G is trying to bring down the car price by 30% few years ago and now another 5 years? why 5? changing the carrot from left to right.
Why 5 years? I tell you why and how:
1. Announce new NAP 2014, promise lower car price in 4 years time
2. Until year 2018 still no car price reduction and also Election year
3. Announce new NAP 2018, promise lower car price in 4 years time
4. Repeat above steps all over again for year 2023, 2028, etc.
You all BN goons, Proton macai can go to hell.
Do anyone of you read a fairy tale “The boy who cried wolf”? This is what the NAP all about.
Just don’t trust anything they plan/promise, they only pick those policies which are favorable to their own at first not the rakyat.
This So called new Nap 2014, only for Wayang la . No detailed plan . Just cover here and there . Decreased the local sales tax but the excise duty is still so Rocket high !!!!
By 2017, think new Nap will come out again . Stating the same shit with spicy Kangkong I supposed
Are the government being real or not? It seems because the government has invested millions, if not, billions for these kinds of projects but end up cancelled or unsuccessful. All these things are simply because it is a ploy for the kronis to gain money indirectly. I want to see Malaysia mature. Hell, even Thailand has their MOT implemented, because they care for people. I really have ha doubtful feeling that this is going to work, with the government being so laid back when it comes to work. It simply better off if the privateers does all this government work and benefit to both private companies and also the government, not kronies.
You want to compare with Thailand? OK la , remove all the subsidies that we enjoy. Petrol, sugar, flour etc etc etc.
Ironically, their sugar and rice prices are lower than ours. If you think the gomen is subsidising it, then why is it more expensive than our neighbors? Even rice is cheaper in Singapore than Malaysia after conversion!
Off topic for a bit. well regarding the comment of sugar and rice..its not really cheaper in thailand. Ive been there quite a few times and the prices of good there ranges from 50-100% more expensive than malaysia.
for example a cup of teh O w/o sugar costs 20 baht(rm2) while teh O with sugar costs 30 baht (RM3). and nasi goreng ranges from 60-70 baht (rm6-7). A roti canai also costs 20-30 baht (rm2-3) depending on the shops. the only thing cheap there are the canned soda drinks. 10 baht for a bottle of coke or fanta.
It is understandable though. There is no sugar subsidy there and the gasoline prices are quite expensive. the latest price for Jan 2014 are 38 baht/L (rm3.80/L) for Ron 91. 40 baht/L (rm4/L) for Ron 95. while diesel price is 30 baht/L (Rm3/L).
Well anyway this is not the forum to discuss other countries prices. lets get back to talk about cars
Rice is cheaper in thailand else why there is huge smuggling of thai rice into malaysia.
Yr nasi goreng 60 to 70 baht is touristy price. I can still hv a nasi goreng 30 to 40 baht in bangkok.
Oh, next time u go thailand, go get some toiletries too. The price are much cheaper than kl.
Cannot compare tourist price with local price. If you’re a tourist, you’ll eat nasi lemak at RM 10 – RM 15 at Papparich/Oldtown/hotel. Locals can still find RM 1.20 – RM 2 nasi lemak at foodstall.
If Gomen remove all subsidies, then they should remove excise duty for vehicles, can or not?
Seems our people don’t mind buying cheaper car and paying RM3.80/liter petrol if the subsidies been removed.
ya, reductions comes with more accessories ripped !don’t believe on this, 2015 GST will be imposed for cars as well. Back to square one.
lol…currently we face 10% sales tax..n to be replace by 6% GST
Yeah right. But what about the costs of third party items like tyres, battery, equipments and other stuffs that the manufacturer has to source out like they normally do? Won’t that significantly increase the price of the car? And on top of that you’ll be charged with the excessive excise duties and 6% GST !
This is the same kampung attitude people have. they think prices are going to be cheaper because 10% has been reduced to 6%
Balik kampung lah if you cannot handle basic economics.
Hei kzm ‘ketuanan’ idiot. All the government needs to do is just to exempt the car sector from any reductions to the taxes lah. This is the same as the ‘ALLAH’ legal for Chiristians in Sarawak but not in the Peninsula rubbish.
I would like to suggest to BN gov to take in Paultan team for Program Transforasi Automobil Industri Negara…retract the NAP 2014.
so what if they take in paul & team? even if they do it is just for wayang only. do you understand? the cronies and the leeching have to be protected at all cost no matter what!!! wake up
Looks like the goverment is determined to ensure its rakyat will only have kangkung in their plates….
Haha very cynical… the may not have the intention.. but the action will reduce us to less than kangkung… dun worry the wont kill u.. the will let u barely survive just enough to pay tax n nothing more
time for malaysian spring
Same like Arab spring?..from Dec 2011 till now most of the country still struggle..Libya in brink of civil war again, Syria still having civil war..Egypt love playing coup d’état..other still having problem of some sort most related to civil war or political unrest…..u guy want to dema..demo lah as long as no civil war..
Myanmar is one of the top Asian country in history.
Gov policy created impact for the future, in the future.
Is war possible if the country go back dated?
A BAD policy should be taken seriously, unclear for foreign investors are bad, benefits for limited people/bumi is bad, ended up creating cronies, etc
What nonsense are you talking abt kzm? This car blog lah, apa benda cakap ni?
What can you expect from a policy make by kangkung officials?
This NAP is to protect P1 only not the rakyat. The rakyat will be conned forever. Pity yourself guts since you’re still vote for them. I’m so pissed off right now. Promise reduction of car price konon.
p1 car SS not even qualify to get EEV status..protect p1?
The main benefit for NAP 2014 is DRB Hicom, that’s the fact, written in newspaper as well
As usual, talking nonsense. No wonder you are doing online business!
kzm look like one of those kangkung officials!
to dear kzm:
please sit back and relax play your own Transformer car. stop giving out your unrealistic comments and become laugh stock of others. wake up and open your eyes. there is still an item on page 22, item H in this so called NAP report named “Kenderaan Nasional”.
let me state the quote below to show you on how’s the protection you claimed they do not provide:
“Dalam memastikan pembangunan industri automotif tempatan yang mampan, Kerajaan telah mengambil inisiatif dalam menyediakan pelbagai jenis bantuan dan sokongan merangkumi bantuan kewangan dan bukan kewangan kepada syarikat-syarikat automotif tempatan termasuk projek-projek kenderaan nasional.”
think again, comment wisely. so long, KZM
LPPL. Terima kasih, Be-eNd.
Read sig…
BN is juz give empty promises… what’s new?
Corruptions at best, debt at best and the rakyat and our children need to pay for the sins that they have done.
Irony!
super disappointed by the NAP. it’s more like a policy drafted by a group of people over few day’s or a week of discussion, rather than something that has been carefully planned and discussed. everything about it feels very last minute, and nothing is concrete, except maybe for some decision like definition of EEV and discontinuation of tax exemption for CBU hybrid models. no sincerity, no willingness in making sure there’s a true liberalisation of the market, and it serves more like a free candy supply in some shops just to cheer everyone up a bit without showing any real willingness to solve issues at hand. rubbish.
kids plan…after taking so long (from 2009 to 2013) just draft 31 pages??? it’s a kangkung plan!!!
Again, Malaysia become another joke for the world!!!
as always, malaysia always a joke especially our PM
It’s like roughly 7 pages per year hehe . Truly gaji buta .
This reflects on the qualification level of our politicians and leaders, what sort of proposal or plan do we call that? Even a primary school teacher will reject that. It is like telling people 1+1= 2 ,3 , or maybe 4 depending on how u negotiate with your maths teacher.
Utter bullshit. No wonder no companies like to invest in Malaysia. So sad but so true.
Those MAI guys have been minum kopi and goyang kaki until near deadline at 15th Jan, then postponed to 20th Jan to rush out their assignment.
Let me tell you what is the conclusion of the report : Reduce excise duty and AP ? In your dream.
So, is skyactive or earth dream can consider as EEV???
Where do we go from here NAP ? Business as usual for the usual suspect …. at the expense of poor Malaysians, our cars continue to be highest price in the world as compared to our purchasing power … per capita
Why argue over the high price of new cars in Bolehland when you can enjoy the low prices of 1 year old kimchis?
presentation ni aku sendiri bole buat kat rumah. seriously, NAP 2014 doesn’t have any benefit to the people.no attention given in terms of effect to the environment. apa yg nampak, is how to make government rich (and also its cronies).
Cant u guys see, having to negotiate actually means,”dear sir, pls put money in my pocket, then we discuss..” This is the Boleh Land way to do bussiness and will never change irrespective of race or post…!
Not worth to comment anything.. Just.. Puuuihhh! There goes my hybrid..
I seconded your claim mate. Malaysia car price is ranked #2 most expensive in the world. If not mistaken Singapore beat us to the #1 spot. But the lion city has it reason to impose high duty cause limited space to accomodate the growing population. But their have some world best public transport infrastructure. Thus, majority do not need to own a car.
Yes that right dude.. Welcome to Malaysia boleh.. Let’s just make it no. 1 most expensive car in the world.. At least we can be in Guiness book of Record.
Eco car- 9.5 litre for 100 km for 1.5 cc car. My 14 year old sentra can do better
Look at the picture properly, it’s E segment follow by kerb weight, not cc.
Don’t simply bash like that.
The standard for the EEV is pretty high IMO.
I think currently none of the Proton model could make it, and I think Proton need a big change in order to achieve the EEV, which probably won’t happen too soon.
This NAP thing. What’s in it for me for potential car buyer? Set aside the car manufacturers
So I bought EEV car rating or sent for VVI. Do I get lower rod tax or lower car insurance or probably lower price.
Who design this shit. This is worse than students preparing their assignment the night before submission. Is this going to be used as guide by car manufacturers on how they should do business moving forward. I do’n know what to say.
Your user name is unique.. Brilliant… Haha..
Much Ado About Nothing
NAP 2014 – so where do we go from here?
we dont need rocket scientiest or proffesor to answer… the answer is HOOOOOOO LANNNNNNNNNNNNNNNN.
Lain Kali Lah !!
The way our Gov do things as below:
1) no clear vision and not progressive
2) get some rubbish accomplishment every 5 years than promise something again for next 5 years for election
3) travel around the world to learn rubbish and fool the rakyat that they are warmly welcome by hosting countries. Especially using govt jet.
4) think rakyat is dumb and come up with kindergarten policy..
5)appoint minister who don’t have required qualifications to do work. Is all about who is popular without right skill set.
6) not transparent
7) create open ended / confusing findings
8) setup many bodies to do research yet get nothing relevent done.
9) use wrong example like kangkung
10) make cronies rich and then let the rakyat suffer.
11) more…
Lol, well said and very true.
Very upset with this NAP announcement. Overall, little benefit or none benefit at all after so many years of study.
Jon Tan, a very good quick analysis on the NAP 2014 and how it is framed against the current Malaysian automotive ecology.
In the coming days and weeks, surely more will follow from other industry players and pundits alike on further impacts of the announcement.
I for one am a bit disappointed that the government is not as confident in bringing in increased FDIs which can then be balanced against reduced revenues in terms of reduction of excise duties/taxes and gradual abolishment of APs.
Useless gomen!!!
Before NAP2014 – Cheap hybrid cars.
After NAP2014 – Cheap hybrid car build by cronies only.
Lol, glad I’m not the only 1 who realize about this.
The solution is very simple, ask Najibai use his hole of ass to eat more kangkung. Why? Because he uses ass to think.
1Malaysia kena tipu Barisan Nasional.
many said, the gov crazy with sky rocketed tax levied,which i agree.
but part of blame also the manufacturer n distributor like toyota n umw. previously,free tax for hybrid. but if u compare prius price all over the world, its still expansive compare to taxable prius in other countries. the gov not collecting the tax cuz prius get tax free status,so why the price so high.
some here blame prtn,yes that part of protection b4 2005, but after malaysia enter afta 2005, no protection allowed in any way whether non taxable barrier such as set the car selling price.
what the heck tax free prius selling here at high price? gov tax?nope,free tax. protect prtn?nope,prtn untill now dont have hybrid. so what to protect? their own fat profit,for toyota n umw
thats why i said earlier,weve been conned by the gov,n also manufacturer plus distributor.
Import cars require an AP.
AP cost RM30K, maybe that’s why the Malaysian Prius cost dearer than other countries even with no tax.
please read carefully, quoted from the NAP report:
H. KENDERAAN NASIONAL
50. Dalam memastikan pembangunan industri automotif tempatan yang mampan, Kerajaan telah mengambil inisiatif dalam menyediakan pelbagai jenis bantuan dan sokongan merangkumi bantuan kewangan dan bukan kewangan kepada syarikat-syarikat automotif tempatan termasuk projek-projek kenderaan nasional. Antara bantuan-bantuan kewangan yang telah disalurkan oleh Kerajaan adalah Dana Pembangunan Automotif, Skim Pinjaman Mudah Pembangunan Automotif, Skim Pinjaman Mudah Automasi dan Modenisasi, Program Rangkaian Industri serta Program
Tool, Die and Mould. Antara bantuan-bantuan bukan kewangan pula termasuklah program bina upaya industri seperti
MAJAICO, Apprentice, Automotive Industrial Certification Engineering dan Lean Production System.
51. Kerajaan telah memperkenalkan projek kenderaan nasional iaitu PROTON, PERODUA dan MODENAS. Kerajaan juga telah menyediakan insentif bagi memastikan kejayaan projek nasional ini. Di samping itu, pihak PROTON, PERODUA dan MODENAS turut membuat pelaburan yang tinggi dan telah banyak menyumbang kepada pembangunan industri automotif tempatan. Lebih daripada 500 syarikat vendor bagi mengeluarkan komponen dan alat ganti telah dapat diwujudkan dan menawarkan peluang pekerjaan kepada 180,000 orang. Ini tidak termasuk peluang pekerjaan yang disediakan oleh PROTON, PERODUA dan MODENAS sebanyak lebih kurang 30,000 orang.
52. Kerajaan menerusi NAP 2014 akan meneruskan sokongan kepada syarikat-syarikat pengeluar kenderaan nasional sedia ada. Sokongan yang akan diberi termasuklah dalam aktiviti peluasan pasaran, peningkatan produktiviti serta kualiti, pengurangan kos dan pembangunan rantaian bekalan berdasarkan pelan transformasi syarikat masing-masing yang selari dengan objektif projek nasional.
unquote
just to remind all of the readers here who said no protection for nasional kenderaan.
the above says all, thank you
typo,expensive,not expansive.
The local papers propaganda war on the NAP alead started today, everybody puji the NaP, claimed car prices down by up to 17 ( they compare old Sentra vs new Almerah, and old cbu Jazz vs ckd version)…i wonder how these propaganda writers sleep at night, knowingly they cheated the rakyat wit their writing skills
Do you know that writers in political controlled media is being paid to paint positive image disregard what is the situation? This is the art of positive thinking and strong brainwash culture in the firm. But at the same time, they fool them self and the readers. Understand they need to make a living and I’m sure they know that it is hard to swallow.
Seriously, how many of you still believe or put waiting for this bullshit? You still trust the conman which has been continue to con for years?
When you sit on there collecting money, NO ONE in the world will change that.
the agenda outcome is simple:
1) All other hybrid or energy saving car will be expensive except cronies (HICOM), exactly the same strategy for Protong startup. All other expensive beside protong. History repeats.
2) AP will continue for life time since they are all majority hold by cronies (NAZA!)
3) all rakyat need to scrap car in 10 years (Protong)
as said, the only way to fight back is DONT BUY car for the next 5 years.
All this if you look back started because of that greddy mamak fella…he started this path to make the rakyat suffer & to monopolize the auto industry in Boleh land with the jaguh kampung protong. He was smart in making sure by the time he left his post, the bubble would be so big until like now where almost nothing can be done to rectify it & protong says protected till the end of time !!
That old mamak will be laughing his ass off after reading the NAP 2014 report while trying to chew kangkung down his throat & thinking how gullible the rakyat is & still getting conned by the current jaguh kangkung !!
Buat projek KLIA2 dgn kos RM800 juta tetapi sekarang belanja RM4 bilion pun masih belum siap2. Satu projek pun defisit berbilion sebab itu defisit bajet sehingga RM30~40 bilion setahun. Kroni dpt projek kaya-raya, rakyat tanggung hutang negara. Projek menara Warisan berbilion RM nak guna duit siapa rosmah / rakyat?
Cukup-cukuplah lebih 50 tahun kena tipu…………….
Boss tapi ramai org tu masih tak sedar sedar lagi. Mereka masih sembah Barang Naik tu bagai god…
Apa mcm nak ubah?
Sebab mereka tu tak sedar kita pula kena seksa. Org org atas pokok tu kena pikir dlm dlm.. jgn setakat 1 pkt beras dah puas hati… pigi la..
HOGWASH! That’s the NAP in a nutshell. How to have the latest technology for EEV when our petrol is still Euro 2? It appears to me the biggest beneficiary to the NAP is the number one crony who, either with great foresights or is privy to information of the NAP prior to it’s announcement have assembled Jazz hybrid in Malaysia. We also know Proton, owned by him, will be many years away from rolling out a EEV on it’s own.
Sad.
Any consultant fees paid up to come up with the slides or policies?
How can you liberalize the automotive industry by constraining it. Just don’t get it.
Reading through The NAP, I must say that it looked really superficial. They did not touch on the core issues such as excise duty and car prices in a comprehensive manner. The AP system is left untouched. We the rakyat deserved better.
Where do we go from here?
NAP = Election Year Wayang Kulit Recycle:
1. Announce new NAP 2014, promise lower car price in 4 years time
2. Until year 2018 still no car price reduction and also Election year
3. Announce new NAP 2018, promise lower car price in 4 years time
4. Repeat above steps all over again for year 2023, 2028, etc.
You all BN goons, Proton macai can go to hell.
Today morning I listen to a Chinese radio station 988. They discuss this NAP so seriously as if the car price is going to drop so soon and how it will affect the 2nd hand car price.
I was like, “Are you joking? A big facepalm.
Ini menteri kangkung bodoh tak tahu pasal perniagaan dan kereta termasuk MAI semua hanya tahu habiskan wang rakyat dan bermewah untuk diri sendiri dan keluarga mereka jawab lah nanti di akhirat dan dalam neraka. Nauzibillah min zalik…
WTF? Seriously, WTF? Make a list of bullet points, throw in some vague/meaningless figures and you call it a policy? After all these years? After all these delays and postponements? What a way to start 2014!
NAP at this moment is just a piece of promotional slides. Nothing can be done if the big boy don’t have the say. Just look at DRB Hicom, Naza, Berjaya, TCMM they bring all those brands, so if you think the NAP needs feedbacks and input from the gov, or you and me think again. The big boys will fill in the blanks.
When Proton increase price, All car also have to increase their price via all sort of method and system.
Proton Suprima are selling at RM 85k above. Even Tax Free Altis also selling almost the same price or cheaper. Rm 85K you can get Camry in middle east 2.4cc Made in Japan.
How the government promote green car when the consumer only left with 1 choice which is jazz hybrid.
Unless government can bring more CKD hybrid model.
Again, I’m paying the same price to get the CKD instead CBU previously also not to mention stripped spec. and quality
At the end, consumer suffer.
Again, it’s wrong to compare the price of camry here with Japan. The economy between these us and them is so different.
He did say the selling price is in Middle East, not in Japan.
Next time learn to read, alternatively enroll into a English class.
Mate.
Ops my fault.
Yup I’ll give that a go.
and why do we need to have EEV, when the goverment can still squeeze all the petrol money in our pockets and tell us that our petrol is cheaper than our neighbors. “orang kampaung tak pakai kereta ..” one MP said. On “AP” issue … i enjoy scrolling and reading SAM LOO’S comments more…
Al-kisah “KANGKUNG” berterusan,
Kereta naik harga marah gomen, petrol naik harga marah gomen, tayar naik harga marah gomen. Ini semua ikut ekonomi dunia dan keadaan cuaca. Bila gomen ikrar kasi 1% lebih EPF dari pihak majikan, tak puji gomen. (padahal bukan gomen yang bayar, hehehe).
wow, James Tan can host well, write well, and park MINI so bergaya! pls open my newspaper wrapping and eat me!
luxury car category 1.8tan to 2 tan… haha so after this just add more weight to the car and voila… falls into lux category… all the top car manufacture are in the race of reducing car weight by introducing smaller yet more powerful engine of equivalent weight and using light weight but more expansive material like carbon fibre and aluminium to reduce the car overall weight increase its efficiency and reduce fuel consumption… and here in boleh land we promote the heavier the vehicle… the better?
BN NO GOOD.?
BUT ELECTION STILL VOTE BN..><
I am not here to say if the policy is good or bad or benefit certain party only. But a policy especially involved everyone in a nation, it has to be precise and clear objective. If you want to say 20-30% reduction in 4 years, what can be reduce, when will reduce, make it clear. The statement is vague, it can be only present as proposal, but not POLICY!
This NAP is has nothing to do with our government policy, it is something that the government has to do because we have sign AFTA and all other Trades Agreements. The best part is.. after so many years our government still doesn’t have a single clue, coz the big boys and AP holders has been running the show
Next GE probably in 2018/2019 . Then Prices of cars will go down.
Or maybe another promise cars will be cheaper…
hit them back where it hurts the most…
STOP buying new car this year.
maybe it u really need a car get a used one. Many almost new used cars. I bet my last penny that there will be a knee jerk reaction almost immediately…
How long are they gonna take us the consumers for a ride??
NAP 2014 – so where do we go from here?
A: Go home and eat sweet potato
PM Kangkung, Menteri Cap Ayam and this is only about the Auto Industry. The other industry?? I rest my case. Scrolling back to old SAM LOO’s comment. Laughing for RV.. Better….
To sums this up with all those announcements, presentations, media coverage, studies, research, hoo..haa..hoo..haa.., ding…dong…ding…dong… , if we as individual really want to own new-latest-imported car/cars. Get an AP ourself, then be rich, receive a “Datukship” and enjoy. Looks like I will have to apply for the AP starting this year.
In the EEV specification for cars table,
1. When a car weight 1000kg and return 5.1l/100km, it is not classified as an EEV!?
2. What if they throw in 1kg worth of accessories and gadget to make the car weight 1001kg, and “maybe” return 5.9l/100km, it becomes an EEV!?
Goosh… I still can’t understand what they are thinking!?!?
Erm… I think you should find out the definition of kerb weight.
I don’t think the car manufacturers will simply change the kerb weight in order to meet the EEV standard.
hmm… yes correct!!! they should define curb weight too. There are some countries that define it differently.
Lets look at a simple example;
Take a model with the most variant in our market, maybe Vios?
Compare the variant with the most and least accessories…
and the difference in curb weight stated in the spec is not just 1kg!.
conclusion, some variant might fall into the EEV standard and some might not… BUT they are actually the same car.
Anyway, what I wanna say is think Green, go Green and forget about EEV. Your own conscience is all that matter
It is easy to meet kerb weight. Take out the spare tire, take out sound proofing material, use Milo tin metal in local assembled car, use undersized battery, use hollow plastic, use thinner glass, use less metal, use fully aluminium engine components… Since the policy did not mention about NCAP compliance and quality… Just build locally and manufacturer get insentives, lastly rakyat get whatever consequences…
Good information. Lucky me I came across your blog by chance (stumbleupon). I have book marked it for later!|