As previously report, the Malaysian Automotive Institute (MAI) has predicted that the prices for new cars could drop by about one to three percent once the Goods and Service Tax (GST) is implemented next year. A new report by Bernama has now indicated that the prices could be offset by costlier imported auto parts.
This is because the parts which are mostly imported from Japan could be affected by the potential appreciation of the yen against the ringgit, causing the savings of the slightly lower prices of new cars to be countered against as components would cost more.
In response to the potential drop in new car prices, Royal Malaysian Customs Department GST Director, Datuk Subromaniam Tholasy, has been quoted by Bernama as such, “So, I will never say that car prices will go down. I don’t know, nobody knows.”
According to him, the foreign exchange rates poses as the main factor. “There is some savings but we must always remember, the biggest cost for cars are not the tax components, i.e., GST, it is the foreign exchange rate”. As for the case with used cars, Subromaniam predicts that values will dip further.
“When new car prices come down, what happens to the old car? It will go down even further next year. If you want to change (old car), you change this year. If you are going to change next year, probably it will be worse off, unless you are making a first purchase of a new car,” he told Bernama.
MAI has reported that the total industry volume (TIV) has seen a rise this year as compared to the same period a year ago. From January to July this year, a three percent rating was chartered for the TIV as opposed to last year’s period. The forecast for TIV was revised to reflect a change from 670,000 units to 680,000 units.
The CEO of MAI, Mohamad Madani Sahari is also adamant that the values of used vehicles will continue to dip, by an average of five to ten percent per year once GST is implemented.
Looking to sell your car? Sell it with Carro.
fact of life…nothing comes down except rain….
MAS plane? body thrown out of building? bus jump a cliff?car value fall?
Talk kok here, talk kok there, everywhere talk kok..
Yee-ah-yee-ah-oohhh….
GST will reduce car price is a great joke, no need any excuse been created to cover here and there?
Ppl are really smart already? Still vote for barang naik??
Don’t talk about post GST and all that. Where is the PM’s promise to reduce car prices by 30%? One year ago, the PM of Malaysia, before the elections, promised every single Malaysian that if we voted BN in, he would reduce car prices by up to 30%.
Najib promised all of us that BN always kept their promises and we should trust BN and UMNO solely. He clearly stated that BN and UMNO never go back on their word and will honour every single promise on the reduction of car prices.
Now more than a year has passed, we are begging 1% to 3%.
It is clear, BN, UMNO and Najib has lied to us.
Yep. The same birdie said the EDL will be free for the people of Johor pre-election. Now they hike the Causeway charges sky-high and say it’s for EDL toll charges and the gomen have to pay so-and-so every year to MRCB la, bla bla bla. What’s the diff? Another score for the crony companies
dono wey bro. u demonstrate for me first see fall or not.
Ribuan terima kasih kepada penyokong Barang Naik.
Barang Naik janji ditepati.
Bayar lebih makan capati.
Perut engkau kena diikati.
Penyokong Barang Naik puas hati?
Haha. Komplen je keje.. macam la bila komplen problem selesai
The fact is, it is the Malays that will suffer the most with the rise in fuel and also the coming of GST.
They form the majority in this country and they are the ones suffering the most. Recent survey indicate 2 million households in Malaysia are earning RM3000 and below.
Want to guess who the majority of the 2 million households are?
Still want to support UMNO?
Even Sultan Raja Nazrin has refuted Government figures and he proved that 78.6% of all EPF contributors earn Rm3000 a month.
Padan muka to all those BN worshippers.
Son, please don’t talk silly things in social media. What did I teach you over the years? Car blog but you talking bodoh about Mas plan, body thrown off building and so on.
not fact of life, but fate of u born in malasia
OMG….petrol increased abt 10%, so can car price decreased 10%? …The MAIcibai always talk kok
OMG…2nd hand car dealer will be angry once see the CEO of MAI said old car pricing will dip further once GST implemented next year… puihhh…
Everyone knows MAI tok kok. Good good, raise car price more! Some people need to feel pain first before making the better choice (might not be right but better)!
“the biggest cost for cars are not the tax components, i.e., GST, it is the foreign exchange rate”.
Dont make me laugh…
B.S story by B.N. politicians always make me laugh.
Why doesn’t the guy just keep quiet instead of opening his mouth and invite people to ridicule him? LoL.
Some people just like to open their mouth and pretend to be smart. Sigh.
Whatever it is, the kronis will never introduce a method which will reduce their income.. Just play around with the policy to make them looks good and tipu the rakyat..
Politician…………………
Yea… keep on insulting our intelligence with your stupid mathematical formula or numbers. GST, tax, discount, rebate, foreign exchange, WTF, subsidies, etc. In the end, do our leaders give a damn about rakyat?
Tell you prices are the same so you continue buying la…. if not everyone wait, car sales go down….
second most broken record ever played in.history of malaya and Malaysia
complain but still look atthe number of new.cars on the road like no feel , mouth only.bising
It also give us the sagar that the public transportation is SUCK!!!
Don’t you aware and you pretent don’t know???
And Mazda 3 wants to launch it’s CKD form in April. Wtf Bermaz? One after another stupid decision.
“So, I will never say that car prices will go down. I don’t know, nobody knows.”
wahh…..win liao lo…..
last time janji us said petrol cheap so car expensive…. now petrol expensive car should be cheaper right ?????
Now you make me laugh… If only Ah Jib Gor janji to reduce the excise duty on cars by 20% come this budget day. Yawn….
[In response to the potential drop in new car prices, Royal Malaysian Customs Department GST Director, Datuk Subromaniam Tholasy, has been quoted by Bernama as such, “So, I will never say that car prices will go down. I don’t know, nobody knows.”]
Really? Nobody knows? Seriously? My understanding on economics is half-pass-six, but I find this statement hard to swallow. even if the yen were to appreciate, I don’t believe it would go up till a level where it would offset CKD car prices, CBU maybe, unless of course, the savings from the GST is little til no difference, as probable 0.5%drop in price. I don’t think CKD card like the City or Civic parts are largely sourced from Japan either.
And than we come to the question of cars other than the Japanese, don’t tell me the appreciation of the yen coincide with the Korean won or the European euros. That would basically mean that it is not the appreciation of their currency but the weakening of ours.
The fact of the matter is, The ruling government promised a 20% reduction in car price by 2017, all of which is well within the power of the government. To put the blame on foreign economic forecast is an insult to the malaysians and only flag-licking ultranationalist will fall for.
Datuk Subramaniam said, “I don’t know, nobody knows..” Come on Datuk, you may not know but the people do know.
Most imported cars and car parts are from Japan.
In Jan this year, RM1 was about 30 yen, now it’s around 34. So, where’s my 10% discount. What BS excuses.
This. JPY is closing at nearly best rate since last 10 years, so where’s cost saving passed to customers?
“10 Oct 2004 00:00 UTC – 7 Oct 2014 13:03 UTC
MYR/JPY close:33.21924 low:23.84225 high:36.13496”
http://www.xe.com/currencycharts/?from=MYR&to=JPY&view=10Y
Songlap, songlap everywhere.
majority of car parts for almera are from thailand and indonesia.. So it is not relevant.
So, you are telling me, a fully kitted out Mini Cooper in the States which goes for nothing more than 35k USD (fully kitted to the brim, 4 year warranty, 3 year service maintenance included), at today’s exchange rate of 1USD = 3.26 MYR, it should cost 114k MYR. Inclusive of all handling, registration, transport, dealer, bla bla bla fee. Let’s say our Malaysians are a bit more greedy, so they whack another 6k to round it up to 120k MYR.
Now, tell me, how is it that our lower specced Mini Cooper, with no LED headlights, no leatherette trim, no MINI Connected and MINI Navigation XL, no Wired pack, no Harman Kardon HiFi, no Service Inclusive, no EDC electronic damper control, no auto climate control, and it goes on, retail for MYR180k. I am fully aware that the Chilli pack that gives the LED headlights, basic Mini Connected, climate control and leather trim comes in at an extra 20k MYR. Even then, navigation (about 2k), HK HiFi (4k), service (5.9k), EDC (3k) already adds up to nearly another 15k to bring it to nearly the US unit.
120k MYR vs 215k MYR. Same factory, same production line, same everything. How does the price magically increase by 95k, I wonder also, if not mainly by tax.
Two reasons:
1) The Petrodollar (google it)
2) http://www.carsguide.com.au/car-news/why-cars-cost-more-here-than-in-the-us-18284#.VDR86BY8RbE
The second article is australian, but applies to Malaysia as well.
And don’t forget the Toyota GT 86. In America it sells for USD 25k. Here is is close to a quarter million ringgit.
haha..someone is a mini fanboy. maybe you should work harder and be rich rather than wasting your time complaining about the status-quo?
I don’t see how it is fair that when I paid over 60k MYR for a foreign make A segment hatch, because I value safety over some tin can car with bending A pillars in the NCAP test (go and see ASEAN NCAP Part 1, see the nation’s most popular hatch with the bending A pillar), when I know for the same value of money overseas, I could have gotten a fully loaded Fiesta or even a base model MINI Cooper. Go figure.
If you still don’t get it, I recommend you go and seek some math classes.
Jangan ingat kerajaan BN begitu bodoh nak kurangkan dana mereka hasil dari kutipan cukai2 kereta. Dengan kantung negara semakin mengecil maka kita sebagai rakyat akan didahulukan untuk menanggung apa saja ketirisan kerajaan BN memerintah Msia.
Royal Malaysian Customs Department GST Director, Datuk Subromaniam Tholasy nampak sangat cuba menyembunyikan sesuatu. Padahal perlaksanaan GST akan berkuat kuasa pada april 2015, mustahil dia tak tahu lagi sedangkan semua kastam dikhabarkan sudah diberi khursus tentang GST. Kalolah harga kereta akan turun jika dilaksanakan GST sudah pasti Datuk Subromaiam sambil menyanyi dan menari memberitahu kepada rakyat yang harga kereta akan turun pada bulan april 2015 kelak. Sebab ini sudah pasti memberi kredit kepada DSNR setelah rakyat marhean berangin satu badan kerana DSNR begitu slamba sekali menaikkan harga minyak petrol RON 95 dan diesel sebaik saja pilihanraya kecil Pengkalan Kubor dilakukan.
..maybe dato tak pi kursus lagi kut..tak tahu apa2..
“the biggest cost for cars are not the tax components, i.e., GST, it is the foreign exchange rate”.. ayoooo incik subromaniam!!!!
Potential appreciation of Yen? Bukan ke now already quite major yen depreciation?
TOKOH TOKOK!!!
The JAP yen is at all time low as dropped like 20% from the highest for years, but car price never drop for a day…
Import part? there is something call Hedging, as UMW and other Jap importer if not doing it now will be stupid financing. What a crab.
All excuses from protect AP importer through all sorts of cronies.
btw, who still believe whoever-crab saying price will dip 10% after GST?
Please vote..
Aloo mister kastam man. You also can say car price increase because act of god. I oso believe you.
Sorry Subro im not retarded as you may be.
Nonsense….. I work in a bank, my client used to lock in profit by managing foreign exchange risk with all kind of hedging tools like forward contract. This is not new, corporation s had been doing this for decades. This is the basic of doing international trade and business. But taxes are downside risk nothing much can be done if regulatory impose.
You don’t know and nobody know yOur BIG hole…
Ringgit just got the mometum to push Yen, AUD, NZ Dollar and EURO aside.. which encourage me to invest so much in foreign currencies…
Nowadays, Japanese car parts are most made in Thailand or China… balik kpg tanam pisang saja… memang cakap tak masuk akal.
as i mentioned b4, cost of living will increase as we are moving towards high income citizen by 2020. tun m also said this recently in his speech in kelantan “gaji naik, harga barang mesti naik”. no way goods n services will go down. buy affordable car when really needed only. put priority on kids education n development, good quality foods, saving for retirement (as we may live for another 20 to 30yrs after retirement). spend money wisely
rakyat didahulukan….didahulukan untuk merana.next time vote BN lagik.
And here we are ladies and gents, we are back to square one … Next election please choose wisely ya …
What a retard like this also can be director.
funny. if the Royal Malaysian Customs Department GST Director doesnt know whether the price will drop or not… then what do u do? why are you assigned to this post?
It is not the duty of the Customs dept to know whether the price will drop or not. Custom’s duty is only to collect tax. The selling price of cars is fixed by the motor companies ie. UMW Toyota, Honda, Tan Chong etc
Will fuel price be subjected to GST or not? This will definitely influence car price. Govt will in the end maintain or increase the total tax revenue. If fuel is more expensive maybe there’s a chance excise duty will be reduced. Otherwise no way Jose. Anyway it’s a lose lose game for the rakyat. The projected gain from GST implementation was estimated at 6billion. Now recall, how much will they inject into the black hole that is MAS? Pray hard Malaysians.
Imported goods are exempted from GST. Please check with Kastam.
Imported good are NOT exempt from GST. Please check with kastam
Nonsense.
First time heard got such post as “GST Director”.
“This is because the parts which are mostly imported from Japan could be affected by the potential appreciation of the yen against the ringgit, causing the savings of the slightly lower prices of new cars to be countered against as components would cost more.”
This is a wrong comment… everyone knows Japanese gov drop yen value… 2011 (RM1=23yen) – 2014(RM1=33yen). We should be getting 30%++ cheaper car….
GST is a consumption tax. Even a newborn is a consumer.
What it means is the Gomen will get to collect more tax while the people in general will have to continue with their miserable lives.
Department GST Director, Datuk Subromaniam Tholasy, has been quoted by Bernama as such, “So, I will never say that car prices will go down. I don’t know, nobody knows.
G(oreng) S(aja)T(au) . Go asked the brainchild of this, that son of porn video lah.
But he knows how to eat. That’s what matters. LoL.
SSDD (Same Shit Different Day)…
couldnt understand why we can stay with this shit who only offer shit quality stuff and when good quality stuff are imported they just raise the price. this is obviously shown that our G is not capable to manage the country to a better live for the people, but only making use of our live as money making slave for them.
The answer lies in the quality of the people we have.
HahhHAhahHAHAHAHhahahahHAHhHAHAHAHHAHAHAHA
Pity those harping for GST & lower car prices. It has been ages that the government plays around with all sort of taxes, duties and whatnot.
Abolish AP, Abolish Kroni, Abolish Barang Naik.
after above abolished, house dept will be decreased from 20% to less than 10% significantly.
Cheaper car price, we can scrap 15-20yrs car.
Less maintainance cost, more safety for public road user.
All car with ABS, EBD, TCS,Airbags etc features.
Those are BASIC feature of car after Yr2000s.
Our live is precious.
Listen, Listen, Listen (Special dedicated to them)
Pihak Barang Naik, Potong, Produa.
Stop your LJ car with Airbags, without ABS.
Shame on you!
GST effect to the Rakyat = Gigit Sampai Terkulai , GST benefit to the gov = Gendut Sampai Terbaring
In Chinese, we call it LPPL,
Citizens living in Malaysia are being fuxked right left up down allover by beloved gorv everyday on everything. So please if you cant vote the gorv out then get out from the country. They said the grass is always greener on the other side, I hate to say this but it’s true especially seeing how Malaysia is progressing (cost of living rise each months without backing up by rise in average income).
Do yourself and next generation a favor, migrate if you can. Starve Malaysia gorv from getting all forms of tax and duty from your part. If there are enough people doing it, pretty sure political revolution will not be far behind.
Pls dont give this reason to explain that price not down…. it was making life more difficult
An article which doesn’t say or answer anything.
To sum up – “Um…I don’t know”
GST 6%, will go up 8% or maybe 10% in future. Trust me!
Previously said GST will reduce the car price.. from 10% to 6%.. then most probably 1-3% reduce only… now, nobody knows… cakap tak serupa bikin.. kalau tak tau, then kenapa mau implement??
“The CEO of MAI, Mohamad Madani Sahari is also adamant that the values of used vehicles will continue to dip, by an average of five to ten percent per year once GST is implemented.”
And what is this guy trying to say? You mean before GST, our cars dont depreciate?
Almost all cars lose 75% depreciation in the first 10 years. Then depreciation slowly levels out.
Even my 5 year old will tell you if you give 10 apples and take back 6, you end up with 4. Both these Loons think the calculation is so difficult. Forex has no impact on this. ALL import/export companies hedge thier forex.
I would care less if GST makes used car depreciate more. If a new Proton Preve(worth 70k) is cheaper by 4% due to the switch from 10% Sales Tax to 6% GST you still save more than what you loose on your OLD Proton Saga (worth 10K)
The truth is, both these Loons are trying to backtrack, one has to understand that both MAI and Kastoms don’t work for us, MAI is a lobby group for car manufacturers, Kastoms for the government, both has vested interest to wring as much money out of us as possible.
Spin after Spin & Spin after Spin.. Reason after Reason & Reason after Reason.. Car price wouldn’t go down but keep increasing…
Last time Govt claim, can not reduce car price coz we have Fuel Subsidy but this excused can use anymore, it going to abolish near future.. But Govt already have new excused “Protect Nation Automotive Industry”..
Then intro GST, Govt told to whole Malaysia after implement it, car price would drop by 4%. But now it look like Car Manufacturers has find new excused not to reduce car price “Exchange Rate”..
Govt play around with Protect National Automotive Industry…
Car Manufacturer play around with Exchange Rate…
Malaysia Oh Malaysia….
well… if you all keep on sharing on facebook that car price will drop 20% after GST introduced, every body will stop buying car until the price is drop.
don’t depend on government, we can united and make it happen!!!
car price drop and auto part price going up…let go one and grab another