Minister of International Trade and Industry Datuk Seri Mustapa Mohamed provided members of the media earlier today with an overview of the past year following the National Automotive Policy‘s (NAP 2014) January 2014 implementation.
He reiterated that the policy’s key objective is to make Malaysia the ASEAN Energy Efficient Vehicle (EEV) hub by 2020, with opportunities including research and development for right-hand drive vehicles and related tech, such as fuel efficiency, lightweight material, telematics, tooling and component design.
Malaysia’s 2014 Total Industry Volume (TIV) grew 1.6% to 666,465 units, compared to 2013’s 655,793. Approved investments in the auto manufacturing sector totalled RM11.5 billion, while those in the after-sales and services sectors reached RM2.6 billion.
As of end-2014, RM4.9 billion of these investments was realised, boosting production capacity by 70,000 units a year. These investments began in 2013 and will be completed by 2018 to yield an increase in the existing production capacity from 600,000 to 923,000 units.
Eight carmakers are involved in these investments – of these, only Perodua, Honda, Go Auto (Great Wall Motors) and Mazda were mentioned, and they all happen to be EEV carmakers.
Where the auto sector is concerned, Malaysia exported almost RM4.9 billion worth between January and November last year (cars, RM550.6 million) – a RM306.7 million drop from 2013. Conversely, we imported just over RM17 billion in the same period (cars, RM8.8 billion) – that’s RM878.5 million less than we did in 2013.
Reasons cited for the fall in both imports and exports include a “challenging market,” increasing ASEAN competition and our comparatively small market.
The trade balance therefore stands at RM12.1 billion in favour of imports for the first 11 months of 2014. This is our narrowest import/export gap in the 2010-2014 period. Mustapa said the final figures, taking December into consideration, will be revealed in due course.
Asked if a decision has been reached on whether to retain or abolish the Approved Permit (AP) system, the minister revealed that a study on the issue is “almost finalised,” and that he is due to be briefed sometime next week before he presents it to the government.
Elsewhere, the Malaysia Automotive Institute (MAI) trained a total of 8,075 people in 2014, with almost all of them securing jobs in the auto sector at wages around 25% higher than the industry average. A total of 21,072 new jobs were created in 2014, comprising mostly technicians, skilled and semi-skilled workers and engineers.
Additionally, MAI’s implementation of the Lean Production System and Automotive Supplier Excellence Programme was said to have improved productivity by 21.5%, saving RM601.3 million amongst 277 vendors.
As of end-2014, 21 technology projects were initiated, with a total value of about RM39.9 million. Four of these projects have been commercialised by December 2014.
Other topics from the NAP 2014 status update:
New car prices dropped 7% on average last year, 20% reduction on average by end-2017 targeted – MITI
Euro 5 diesel to begin selling in Klang Valley this year
No plans to extend CKD hybrid tax exemptions as yet
Public not ready for Vehicle End of Life policy – Tok Pa
Looking to sell your car? Sell it with Carro.
“WTF” Does this Bozo knows what he is talking about! On one hand he keep harping that we are promoting EEVs BUT on the other hand “no plans” to extend the CKD hybrid vehicles. Then WTF are you promoting?
Maybe because govt not much money left, so must get more car taxes. Tahniah macai2.
The recent car prices issue made me curious. Having been totally unaware of such huge discrepancies between Malaysian and world prices, I surfed the Internet to see what real world car prices were. I was shocked.
These are US car prices with US duty and import tax paid, which are just like Malaysian car prices with duty and tax also paid, but here, you will see, they are much lower and less exorbitant than in Malaysia.
Bear in mind all cars are CBU (complete built up) Japan, CBU South Korea or CBU Germany.
The following cars we get here are CKD (complete knocked down) cars with more than 50% Malaysian content and “supposedly” are cheaper due to their being CKD and supporting Malaysian manufacturers.
I cannot understand, we support our own Malaysian manufacturers and beli barang buatan (buy local) Malaysia too, and yet the prices can be higher than barang buatan (made in) Japan or German, which is usually higher in quality.
And yet, to make matters worse, US people’s GDP per capita is higher than Malaysia’s and the average American earns five times more than the average Malaysian.
Below are car prices based on exchange rate of USD 3.0 as it was 2 years ago when I wrote my article. These Malaysian car prices were also 2 years ago, so, it is fair to use the exchange rate of 3.0. Malaysian car prices infact have risen the past two years.
Mainstream car prices VS Malaysian Prices
Honda Accord 2.4 US$21,480 (RM64k)vs RM180k
Honda CRV 2.5 US$22,495(RM67k) vs RM180k
Honda Civic US$15,955 (RM47k)vs RM115k
Toyota Altis US$16,130(RM48k)vs RM139k
Toyota Camry 2.5 US$22,055(RM66k)vs RM180k
Kia Sorento US$23,150 (RM69k)vs RM160k
Hyundai Tucson US$19,245(RM57k) vs RM140k
Hyundai Sonata US$20,895 (RM62k) vs RM150k
Hyundai Elantra 1.8 US$16k (RM50k) vs RM118k
Luxury car prices
BMW 328i US$36,500 (RM109k) vs RM300k
BMW 528i US$46,900 (RM149k) vs RM420k
BMW 535i US$52,500 (RM157k) vs RM600k
BMW X5 US$47,500 (RM142k) vs RM580k
Mercedes E350 US$51,000 (RM153k)vs RM400,000 (In M’sia for only CKD E250)
Jaguar XJ US$73,700 (RM221,000) vs RM900k
Porsche Cayenne US$48,850 (RM146k)vs RM580k
Every Malaysian must realise they are being cheated on car prices and have been cheated for the past 30 years.
Most Malaysians pay close to 50% of their salary for their monthly payments for their cars.
Not only do the banks get an easy ride (cause everybody is “forced” to take loans), we have to live in debt for over seven years, depriving our family of better food and clothes.
You stay in Malaysia you pay local price
The prices has nothing to do with the government(to a certain degree)
They can only influence prices to a small degree
Neither its the manufacturers fault
The biggest bulk of the price differences is us as consumers
Your comparison is invalid because the US is a bigger market
They sold 16.4 million units of vehicle last year
Our market is 355k units of vehicles after minus P1 and P2
In the US if car manufactuers made USD10 profit per car, they are looking at USD164 million in profit
Malaysia?
At USD10 profit per car, they are only looking at USD3.55 million in profit
They can barely sustain that sort of operation here
Thus low volume = higher margin = our buying price
In other words I hope you dont cheat the rest of Malaysian car buyers
You cannot compare prices with countries that has high vehicle sales volume period
Its neither any better in the US, their students when graduate they already in debted with study loans
It took them almost 5 years to repay that student loan they took
Most cannot even afford a car while alot of us Malaysians has got cars even when they are still student
Oh here’s some facts for you
http://www.thepovertyline.net/map
In the US the poor pays USD4.91 for food while the poor in Malaysia pays USD1.36 for food
Almost 4 times more than what we pay
In other words you need to earn 4 times as much work 4 times as much as you are now to be poor in the US
Talk rubbish Wayang Kulit. I now stay in the US, food here is much cheaper. When I was in Malaysia also I had to pay study loans. What rubbish you talking BN Cybertrooper?
Maximum talk rubbish
Wayang got some right and got some wrong.
Yes, this global guy cant compare the cars price straight off like that as there are different mechanisms in both final price. Duty and taxes are different. Efficiency and economies of scale of both country is different.
Wayang, you are wrong about gov have nothing to do with prices. Government is one of the most powerful forces in economics. It can distract an economy from its equilibrium because it sets policies in its country. In this case our G’s proactive policies are the one that sets the prices of cars in Malaysia. We all know this. So sudahlah wayang, dont play wayang kulit here.
We all know where we are. Malaysia transparency, prosperity and efficiency is far from that of the US. Denying that is useless and not constructive.
Yes when G do something good we must praise, but when G is wrong we must choose to highlight and critise so that G is motivated to perform.
Wayang got free education kot cause of crony parents, warna kulit or parents are filthy rich. Most ppl in Malaysia have to pay their edu loans, or see their parents go thru hardship to get a decent education. And considering our edu system is far sub-par to that of US, i think we get a really sh*t deal.
Now wouldnt it be good if we can get a new G to change all these towards the better? Dont you guys just have enuff with our increasing hardship while the G play with 1MDB. Think abt it..
And no, dont emulate US. I rather we emulate other nations like the Scandinavian nations/Germany/Switzerland.. etc.
Some people in Malaysia get free education. Wayang Kulit, not everyone can be like you get free education, discount on houses etc. Most of us also got Study loans. I am still paying my study loan.
due to my work basis, I constantly meet up with customers from country like US, UK, NZ, etc and everytime if we talk about car prices in M’sia, they always shocked by how expensive our cars as compare to our income!!!
just take example above for
Toyota Altis US$16,130(RM48k)vs RM139k
For them, it probably cost them one or two months salary to own a Toyota Altis back in their country but for us, YEARS!!!
This is crazy and we must “thank” our “beloved G” for this!!!!!!
To protect Proton mah, If Corolla is same price with Iriz, then how?
You forget the cronies who sit on the BOD for the car companies like SIME, NAZA, HM, UMW who keep prices up and govt just tax on the prices submitted. If they keep it low or 20-30% from the price bought in from the original countries, 140% tax on these cars would not be so much eg imported recond cars are 50% (or less) cheaper than a new car. however cronies in the AP car industry also want to make max profit and do charge more that the price they paid for in the original countries ie Japan & UK or SAfrica so new car companies have to price them higher to profit their buddy cronies. If we can eliminate these cronies, then we get cheaper cars.
Even After Massaging the Figures over and over , they come out with such pathetic figures. Obvious the country’s economy in DIRE straits
Oh really?
Which part?
Eating out or at home?
Did you factor in tips? Or are you like the typical Asians who dont tip ?
How much you paid for education in Malaysia vs the States?
How much did you pay for medical in the States?
How much does your insurance cost and coverage ?
Pointing out things that you dont like means im a trooper?
Whose spewing our rubbish now?
I said its neither any better in the States where they had to pay back student loans, which of that is rubbish?
PTPTN rings any bells?
Wayangkulit1, still talking rubbish. Semua dapat free dalam hidum also want to complain and kutuk orang lain?
Wayangkulit1, still talking rubbish. Semua dapat free dalam hidup also want to complain and kutuk orang lain?
By right all CRV buyers who pay RM150k for their car can actually own a Porsche Cayenne. See how we are cheated?
The result of first world ego, third world mentality. Unless you can expand the auto market overseas, keep dreaming.
@Al and @Gregg Chin notice I said they could influence to a certain degree? I agree they could but up to a point where our volume will limit that ability to influence price
Yes they too set a price in our car via taxes but that is secondary
The bigger bulk of your expensive car price is due to the fact that we have lower volume that the US
If you refuse to understand no one could force you
Ive given you figures on why manufacturers have to sell their cars here at a higher price than countries where they could push a higher volume.
And you conveniently ignore them
Nobody is denying that transparency, efficiency and prosperity is better
That is why we are a developing nation while they are a developed nation.
So not an apple to apple comparison either
The problem with people like you is jumping into conclusion
Ive defended the government on certain issues doesnt mean Im a pro government, a politician or a bumi
Ive got no such privilege you mentioned about
Im also thankful for the fact that we are being marginalized
Since our forefathers came here, they understood one thing, things are unfavorable towards them and thus they have to work harder than the rest.
While our forefathers worked harder to progress, those who recieved benefits and help regress/slack off
That was the recipe for their success, problem with our generation?
We are asking for benefit asking for help and whatever problem is some one else
All we do is sit and complain while not giving any effort to improve the situation
If you think you have an idea to reduce selling price at the same time maintaining the same profit margin, write to car manufacturers
If you think you can introduce policies to help reduce car prices, stand for election. You have my vote already
You can cry till the cow come home, change a few governments
Your car price will still be more expensive than in the US period
Unless you can improve our total industry volume to equal theirs
Proton has a market of less than 30 million consumers. Toyota has a market of over a billion consumers. The United States itself is a market of almost 300 million consumers. Proton could only manage to sell around 100,000 cars a year. Toyota, Volkswagen, etc. can easily sell 10 times that number. They have the economies of scale and can keep prices low, we can’t.
The world oil price reduction has already reduced Petronas’ earnings by a lot. Our ringgit has weakened by a great deal. And yet, armchair experts are calling for taxes to be abolished, for cars to be cheaper, for petrol to be cheaper, for local heavy industries to just close shop and let us buy imported goods for cheap prices without taxes etc. This shows a total lack of understanding of simple mathematics.
How then, can our country generate revenue? If our exports fall, the government will have to tax the population to earn money. If our local industries don’t produce, we’ll only have capital outflow and our national revenue will be even lower. If we lower taxes to the people and increase our imports, our inflation rate and currency value will be even worse.
There has to be a balance between taxes, supporting local industries, and yes, the taxes for foreign imports should remain, although it can be reduced or managed better. Otherwise, our country will turn to shit in no time at all and our ringgit will be worth nothing even when compared to the Singapore dollar.
Agreed, however the people here could really care less
I always hear them says the Government dont care and is selfish
I think these people are worst than the selfish government they so love to hate
They only want tax free, toll free, cheap cars, cheap fuel and dont care if the government make enough to sustain day to day operation of the country
Without these revenues who is going to pay for the operation of hospitals, police departments, custom departments, fire departments, street ligthings, traffic lights, rubbish collection, water departments and etc?
Money drop from sky?
These people are really selfish, all they do is open their mouth and eveyrthing must be cheap n free
You point out to them, they say youre being paid to defend the government
There are many people like me, who are willing to pay 100% taxes and pay half Mil for a vehicle. We, however, would like to advice our Government to be much more careful and meticulous about their spending/expenditure/wastage.
You cannot let your friends to build a 1000 sq feet average house and charge you 800k for the building cost; no screw-driver can cost RM500 per unit unless the metal is argentum with aurum-plated. Is it true that our decision-makers in various departments (government servants?) actually bought properties in London? Wow.
You can collect car parking RM30 per hour and I will still not complain as long as you use the money wisely. Premium public toilet RM10 per visit is ok for me if you wash it after every single use, similarly.
Do we really need such a large team of servants / tangankakis?
50K servants in one house, for instance.
Just ensuring pocket will not go empty only.
well said
He’s promoting Proton lah, what else does NAP do than to screw the car economy?
“Malaysia Automotive Institute (MAI) trained a total of 8,075 people in 2014, with almost all of them securing jobs in the auto sector at wages around 25% higher than the industry average.”
For those kids out there that don’t understand and keep supporting cronies MAI/MAA/MITI.
BN supporter “panda muka”.
Never TRUST MAI- & Mandani
I saw, First slide of PPT showing photo of HIMSELF.
Bad personal behavior, introvert character = bad for nation building.
a junior mechanic starting salary used to be at approx rm700 per month, which has now increased to the minimum rm900 pay.
25% increase to that is actually nothing. only rm1,100 when the average income per capita is at rm5,900.
MITI is basically setting a winning a game that they themselve created. The ‘dropping’ of car price is something I can say ,predicted. By introducing ever cheaper and poorly speced models to the model lineup, and I’am looking at the City S, Cerato SX, Volkswagen Polo 1.6 and the Suprima S Standard, they can squeeze their way and say that they have achived their promised, and their promise was all the while, to achieve a 15-20% price reduction on each models, they never said anything like it will be the same spec as before or it will come with all four wheels.
And of course the same principle applies to ” Its key objective is to make Malaysia the ASEAN Energy Efficient Vehicle (EEV) hub by 2020″. the fact that the definition of EEV is so poorly define, that almost any car can be called an EEV. And with Thailand’s and recently Indonesia’s ever growing automobile industry, its not something I can see being acheievd any time in the future. But I’am sure MITI will twist their words to their favor.
I’m starting to take MITI’s announcements, slide shows, figures and percentages with a pinch of salt.
Only God knows what the actual figures are and I bet most of them on the slide show would have various errors.
They are not errors. It’s intentional twisting the figures.
If Gov remove tax and duty barrier, sure TIV can exceed Millionth!
Rakyat just want an affordable, reliable and safe car!
example : A Rm50K Honda City or a Rm40K Preve ?
A Rm50K Ford Fiesta or a Rm40 Suprima ?
Banned imported car!!!!!
buy Malaysian First……huahuahua…
pity to PR supporter …no cheap CARS…
wait when PR rules…hohohoho…
nevermind bro, we wont vote BN anyway
Ban every import thing for u. U can start wearing local made underwear. Most of the things were import from China!
What HUB when we cant even export to neighbor country and all car factories already build their HUB in neighbor countries…i mean Bolehland is not call “ASEAN”..it the same shxt in BOLEHLAND ONLY policy so all import will be 300000% expensive.
Shiok sendiri vision with no logically 1st step, due to monopolized for Protong
EEV Hub? Keep Dreaming……
alamak.. benda kecik macam ni pon xleh nak setelkan.. :) kasi saya laa jawatan tuu.. hahaha
Lu kena jadi ahli kroni baru leh dpt jawatan tu bro.. =)
He is promoting EEV but only to Proton and Perodua. They always talk nonsense and in the brain only think of $$$$$$$$$.
Still the same recipe, racial based policy.
Given to all bumi cronies while the real deserving bumi gets nothing.
Manufacturers has already shown that they rather let Indonesia and Thailand’s government squeezed their balls than us
They’d rather brave political uncertainty, natural disaster, investing from ground up in those countries and language barriers in those two countries than sticking with us; a country that has no natural disaster, 52 years of unchanged politic domination, lesser language barriers and lots of groundwork for the industry already well laid.
If I were him, I’d rather hide my face in a toilet bowl, malulah with the rejection and failure to keep them in as we were given first priorities and preferential over the other’s Asean countries
Managed well from the beginning, we shouldnt even have competition at all
The data has no meaning with monetary value alone as that figure can be jacked up
Please show us the amount in units
Thailand’s TIV is 1.8 million units last year
800k consumed locally while 1million is exported
Ours is in red, a huge deficit
In a business sense we are leaking money overseas while Thailand is enjoying surpluses
As long as our automotive industry is not being managed as a proper business we will continue to spiral down
And the peoples money are being wasted to keep it afloat
well said, well said, but they wont malu as long the $$ goes to their cronies pocket…
doing work for the rakyat is NEVER their job, but getting $$ into own pocket..
seriously, can we find a statement from any minister that make sense lately to the public?
As though Thai and Indonesian are so naive not interested in EEV.
MAI and MITI is playing with their own numbers. They have long been checkmated by the Thai and Indonesian auto industry but they still think they are in the game.
What hub are we even looking here when our neighbors do several magnitudes more per year. EEV Hub? these guys can’t even define what it is and do it transparently.
With GST and price of fuel dropping… Next years TIV would be even smaller….
Bull crap= NAP 2014
Enuf said
look at those slideshows. i bet uni students could’ve done better.
This idiot always present the rubbish forecast analysis and the g keep doing the rubbish job, it will make sure to have more burden from time to time and future to his call “rakyat di dahulukan”.
Car prices are high because of taxes and duties on cars, to the Malaysian government.
If you buy a locally made Myvi, the duty fee is
car price
plus 60% excise duty
plus 10% sales tax
= what you pay
If you buy a car made in Germany like a fully imported CBU Mercedes E350 the duty and tax is even higher
car price
plus 30% import tax
plus 105% excise duty
plus 10% sales tax
= what you pay
The reason why cars cost so much more in Malaysia than in America is simple. Malaysian taxes.
We are paying too much on car prices for low technology vehicles. That is why we are commenting on “rubbish” with regards to lower vehicles prices for low technology vehicles. Are we comparing apples with apples or apples with lemons.
Please use other names to post your comments.
If you see low-class comments under the name of Jimmy, those are not mine.
Be true gentlemen.
I never read any high class comment from jimmy. All are rubbish comments, problem?
gah…..an ugly face is the first thing i see when i open paultan now…..and pls change that c-class video on the side its so old
and ugly face is the first thing i see and pls change the c-class video
seriously i cant stand that face
Look at the ICAM..489m invest and 487 graduate! what a shame of burning money for 1m per student…I bet sending them to German to study wont even cost Rm1m/pax typical cronies activities.
and the job creation? how much job lost to Thai and Indo cos of this policies.
These data shown the G totally a waste of resource management..
NAP is always just about national car, i don’t think anyone really interested to invest here for EEV in long term. Look at the CKD hybrid, you want people to setup production line and give them short period of time to recover their investment, who dare to invest much here ? the same for EEV, after that when proton and perodua own EEV comes out, all foreign EEV incentive or plan will change.
So, foreign car manufacturer beware. u know the trap and crap of our NAP.
One thing to ponder though, why is it that even with the UK car price cheaper compared to Malaysia, why didn’t most of the people there dont own the more expensive car? I stayed in the UK for 8 years. Most of the people there drive vauxhall, toyota or volkswagen. Seeing a Merc, BMW there is a rarity even in a city like Manchester. I see more BMW, MErc, Audi in KL compared to Manchester. Is it because they dont see car as a ego boost but a tool to go from A to B? Here in Malaysia, people who still not own their own home, earning Rm3500 a month, still renting, married with 3 kids but still drive a chevrolet cruze. If you got to low cost flat in Malaysia, look at the car there, most of it are expensive cars like vios, city,elantra stream, wish instead cheaper car like myvi, viva etc.
Hmm.. are Honda and Perodua being forced to hire more than they needed?
Perodua hiring 1.7k+ to achieve 100K additional capacity. Honda hiring 1.7k+ for 50K additional capacity.
How on earth did Go Auto managed 25K with just 170 extra workers?
complaint complaint..car price high..rakyat suffer..but ironically most the person i knew who love tho complain is the one who keep on changiing cars every 3-4 years..and bragging they new car high tech equipment.
you dont want the gov to take your money (All the taxes)
you dont want the bank take your money (Interest / loan)
you dont want the sales person to take your money (Comission etc)
you dont want the car manufacturer to take your money (profit)
you dont want the JPJ to take your money (No plate reg. , new car reg fees)
…..and yet still change your car every 3-4 years and feeling proud?!
I finished my car loan 4 years ago on my Altis. Enough is enough, i wont buy any new car..i wont give my hard earned money to the repected parties above.
Lets boycoott the car industries for one year..and im sure the impact will be significant.
Dont buy any cars..use what ever u have..only for one year.
But will this people want to change?..nahh..they will keep on changing their cars…and then complaint car price to high…clever rite?
No need to compare with US car price.
Car same price with Thailand also we happy already lah
This people wayang kulit are cronies tooo, dont bother because you take example of lembu nfc our money what they did. They never complain cause their buddies and gang wasted a lot of taxes maoney here and there , still blame ordinary people that we must pay for higher prices for good andcfood. Go tohelll wayat kulit madey kutty.