Following the signing of new trade agreements including the Trans-Pacific Partnership Agreement (TPPA), Malaysians can look forward to a drop in car prices in the next two years, The Sun reports.
International Trade and Industry Minister II Datuk Seri Ong Ka Chuan said told reporters that within the next 26 months, various trade agreements will bring out the competitiveness of auto industry players. Besides the TPPA, Malaysia is also in the Asean Economic Community (AEC) and Asean Free Trade Agreement (AFTA), and has trade agreements with Japan and Australia.
“Car price reductions are facilitated in the open market policy and the whole world will explore the free trade areas with three basic principles – movement of goods and services, skilled labour and investment, which will offer competitiveness and reduce the car prices,” Ong said.
“Under TPPA, cars from US and Canada will come in for 12 years to enjoy the free tax. We have to participate in this trend to compete with the international market. At least for a while, we will protect the local industry but after 12 years, you will have a choice of international cars,” he added. Read more on the TPPA-car price relationship here.
CEO of the Malaysia Automotive Institute (MAI) Mohamed Madani Sahari is on the same page. He believes that cheaper cars will continue to hit the market next year as car price rationalisation exercises had already begun since 2014.
“By 2018, we estimate 20% to 22% of price reduction. As of May this year, car prices have been reduced on average by 16.5%. How did we measure this? We monitor the prices model by model, variant by variant and we do not include the promotional prices. We only include the reduction of car prices on permanent basis,” he said.
The talk of cheaper cars seems to be against the trend today, and Malaysia Automotive Association (MAA) president Datuk Aishah Ahmad takes a completely different view. “We expect the car prices will go up in 2016 due to the foreign currency exchange rate. But we are positive of our forecast for Total Industry Volume (TIV) this year at 670,000 units,” she said.
Aishah is not so certain about the positive impact of TPPA either. “TPPA is still in the future and we need to know the details. For local industry we have not been officially briefed. Import duty will be reduced for most of the companies in Malaysia but we are not sourcing from North America as we only source from Asian countries like Japan and Korea as well European markets,” she pointed out.
The government and the carmakers seem to have opposing views on car prices in general, and TPPA, but “cheaper cars for Malaysians” does seem to be against the current trend to the layman, and the weak ringgit as well as the fact that most auto players here have little business with North America seem like legitimate factors.
In fact, car companies have already announced prices hikes (or the possibility of prices going up) effective next year – Toyota/Lexus started the ball rolling, followed by Honda, Nissan, BMW and Mitsubishi.
Looking to sell your car? Sell it with Carro.
So wonder how many local automobile dealerships are actually bring in their retail products from Australian or Canada or US ?? and for the car direct from Japan..wonder what TPPA will effected on their local assemblies line ? shut down ?
The question we must be asking is, where is Najib’s promise to reduce car prices? Why wait for TPPA and another 2 years more? Sampai 2 years time, Government will do another bluff.
After all AFTA supposed to come in 15 years ago and give us cheap cars then. But we kena tipu and AFTA was circumvented.
Don’t wait for TPPA and another 2 years but we must ask…
Where is Najib’s promise? Najib promised 30 million people 2 years ago before the election that he would reduce car prices by 30 percent.
He said the 30 million people need not worry because BN always kept their word and never mungkir janji. He said if people voted for BN, he was 100% sure to reduce car prices by 30 percent.
Najib, in his speech told people that BN knew how much people suffered paying for their cars and he felt very sorry for the people, thus, he was sure to reduce car prices by 30%.
It is a well known fact, that we Malaysians are paying 3x the global prices of cars. And double whammy, not only we pay 3x the global prices of cars, our cars are stripped down so bad, it hardly lacks any safety features. Even our top D segment cars each have about 20 less safety features than the same car costing 3 times less overseas. For example, a 10 airbag Toyota Camry CBU in the US cost US$22,000. In Malaysia, this cost RM180k. And loads of safety spec taken out. For example Tyre Pressure Monitoring System and many others. Camry Hybrid in the US is US26,000. Come to Malaysia, should be tax free. CKD it using Malaysian parts should be even cheaper. But here sell RM175k
Typical Sendiri Cakap Sendiri Syok. End of day NOTHING done.
Everything is to protect Proton and cronies. You think our Camry Hybrid can’t be sold under RM100k? Think again.
Madani, pls don’t be a ball licker. Please ask where our 30%?
Who still believe BN in bringing down the car prices?
stop saying COULD or WOULD or MAY or whatever you say, do it right now if you want to…
we don’t trust you anymore lol
Madani has been promising Malaysians the past 10 years cheap cars. Every NAP, he will goreng to us that it will be fulfilled soon. But 2 issues he does not want to pursue.
First, his bosses promise to reduce car prices by 30%. Madani, you should ask Najib, where is his 30% car reduction promise?
Second issue, AP issue, is costing 30 million people to suffer. 30 AP Holders reap billion each per annum but 30 million people suffer with high car prices. Why protect the AP issue?
Madani cannot address these 2 issues. But he will goreng with us on cheap TPPA cars
AFTA supposed to give Malaysians cheap cars. It came into effect in 2001. BMWs were manufacured in Thailand for sometime now. Toyota and Honda as well.
By right we should be buying a BMW 5 series for less than RM200k from Thailand if we were to honour the AFTA agreement.
Yes. I hate these 3 words too. It is just as good as never said anything.
Yea, again this kind of rubbish statement from boleh land minister. They don’t even know the what is the real pros and cons but already told rakyat don’t worry and be happy. The sad thing is most kampung folks will trust their word.
Talk cock la, every year also say reduce price. The only reason it is reduced is due to either 1) reduce spec until become tin milo kosong and 2) year end sale
-BigBalls-
Government will never reduce car prices because Government own all car companies in Malaysia
Don’t get your hopes up guys, agreements such as TPPA and AFTA might seem to be good news for consumers but we all know IF there’s any price change, it will be minimal. I still remember they lowered the import tax but added in the excise duty, and it made cars more expensive! Now, thanks to the ‘strong’ Ringgit, we can expect ‘cheaper’ cars in the future. The talk of having cheaper cars has been going on for years and years now. Let’s be honest, the Gov is making shit loads from car taxes, APs and stuff like that. If they remove these, where will they get the money from?
Keep this news printed in case BN caught lying again.
They have cheated whole nation billions, what can you do when they cheat another.
sape laa yg impot keta dr usa or canada..haha..bodo laa mai dgn gomen ni..propa je lebih
Reduced coz have to compete wt US cars coming in…no extra tax of US cars…
Could or would or maybe… Another empty promise by BN Government ministry !!! “Under TPPA, cars from US and Canada will come in for 12 years to enjoy the free tax” he’s making empty talk within 12 years then most Rakyat will busy paying debts and daily life expenses.
Yay! My dream to own a Mustang V8 has finally come through. Yay!
Proton:”selagi aku masih bernafas, jgn mimpi la!”
Previously in anticipation for AFTA, Gomez say car price will drop. Before GST Implementation, they also said car price will come down after GST. Now, they say after TPPA, car price will come down. Well, third time’s the charm, eh? Nobody wants to believe that crap anymore. Please don’t insult us lah.
Have been hearing this nonsense for years and years already. I first heard it when i was a teenager, now already mid thirties. I will probably be dead when car prices finally drop.
All these are imports from countries which are irrelevant to us. We need cheaper CKD cars and CBU imports from the usual suspects.
Suggestion to call future car price reduction agreement plans as LPPL or TCSS. I think the public will understand them better without going into details of the agreements.
Hahahahahahahahahahahahahaha
Yeah, right. We so believe you.
Funny how they are trying to convince people to accept TPPA by telling us it will benefit us by reducing car prices, truth is.. the BULK of what pushes up car prices in Malaysia is not import taxes, but EXCISE duty. Reduce that and we have cheap cars without even needing TPPA!
Gomen says different things… Industry players association says different thing… Who is doing the auto business on daily basis actualy? Gomen tokok only… hence I believe what the idustry players says… Car price is ging up next year definitely.. Talking about CKD… those manufacturer import parts & CKD packs using what currency eh? Import use USD sell back in RM…make sense kah car price will go down? We buyer lah tanggung all the forex cost. RM has no indication going to recover at RM3.00 per dollar like over a year ago…
Sorry, but carving the price of a Proton Saga out of premium and luxury cars prices does not affect 90% of the population. But conveniently, it helps skew the graph, ha?
Why talk about the future 2 years when we still can’t decide on whether we still get tax incentive for hybrid that will expire in 2 months??
You all want many prices down and live happily and peacefully the answer is simple on this coming election just vote pakatan rakyat we all kick out umno bn government hopefully everything will settle.
They sure paint a very rosy story which sounds nice and all but what car sold in Malaysia is directly imported from the states or Canada?? I would say none as even Ford cars sold locally are from Thailand or other plants outside USA.
Come 2 years later and they will spin a different tale.
On another note, reduction in car prices has never been due to MITI or government effort at all. If a car cost RM90k now a price reduction would mean the car with the same spec should be priced 17.9% lower at RM74k. See the connection here 90k full spec vs 74k kosong spec is exactly 17.9% price reduction as deduced by MITI. Just because there is a kosong spec car does not count as price reduction.
all this agreement is just pure bulshit, if u want to reduce car prices, abolish duty and AP. The gov should not take credit for price reduction because car manufactures are forced reduce their price due to lack of customers not because of GOV POLICY
tok ismail sabri: we can not reduce car price otherwise bumiputra all close shop
Please la, don’t tell me reduce next 2 years or tomorrow.. or even after GE.. if sincere and honest should tell reduce from today, and not in future. We Malaysian has heard enough. Recently price reduce is after GST… do you think we are happy with the price reduction?
I can only see reduction in rakyat’s trust in the current government and their one sided management.
from current situation we can see car price will drop but toll,oil, even roadtax and car insurance price will raise up.
next 2 year, election
Jibby says Let’s take out all taxes on cars.
But then apply Gst 60%, otherwise malaysia akan menghadapi bankruptcy.
Cannot reduce later Dr M Proton marah. If you remove proton you remove the thorns that plague the issue of high car prices. One man ego versus 30 million people suffering
Not agree. because after close down proton, sime darby, naza n perodua still need to be protected..
The only time government will reduce the car price is when they are buying for their own use. But then again, I doubt they would need to pay a single cent.
Another “price goes down promise”, and I’m wondering what happen to previous “price goes down after election”. Nothing happen, end up the car dealer to reduce the price by giving discount. Still, Rakyat who suffered. To PM & the gang, don’t overpromise and do nothing. Please step down, I honestly can say you & your gang so incompetent to manage our nation. Let the right person manage our Malaysia. Please don’t thumbs down, just my 2 cents. I’m so unhappy with our PM and the gangs.
Not just this PM n the gang, if next gomen still appoint politicians to runs corporate & profesional agencies, nothing will change. All sweet talks only and later want to claim meeting allowance ..become B.O.D just for pocket money.
Another “Najis” promise by BN government, Malaysian pls wake up and stop fooling yourself under BN government. Just a single phrase to end my comment,”kalau kerajaan BN boleh percaya, Najis pun Boleh makan”
It is proven reduction will not happen in bolehland..the world oil price dropping they said the oil price remain…Nov?? Not bad!
Bulls only. All this only sweet talk just to get people agree for them to sign TPPA..
TPPA could reduce car prices… and booming the medicines cost.
Reduce car price my ass… reduce safety features, effectively forcing us buying expensive empty moving coffin.
Always compare yesteryear full spec car price to empty moving coffin and claim price getting cheaper.
I tell you what’s getting cheaper. Those Mercedes my boss bought, and not these common cars that most of us drove.
Then minister would tell you to work harder to afford Mercedes to enjoy price reduction.
Is over 2 years. No news for car price reduce in MY?