A Free Trade Agreement was finalised and signed between Malaysia and Japan on Wednesday. The Japan-Malaysia Economic Partnership Agreement (JMEPA) focuses on solving issues with the trade of automobile and steel between the two countries. This will mean some tax incentives for the import of Japanese vehicles into our country.
Now before everyone shouts “Hooray, now that Honda Jazz I’ve been eyeing will be affordable to me now!”, there’s some conditions involved. Whatever benefits that the JMEPA brings would only affect vehicles that do not compete with Proton and Perodua. What does this mean? What are the types of cars that Perodua and Proton does not make? Probably only SUVs, high performance sports sedans and luxury vehicles, at least for the time being. Everything would probably take effect step by step, with the final stages being tax abolishment for Proton/Perodua competitors. When? Probably when the government thinks our home boys are ready to take on the Japanese makes.
Under the agreement, Malaysia will abolish tariffs on completely-knocked-down (CKD) vehicles and components produced by Japanese carmakers in the country.
Tariffs on auto parts imported from Japan that are not used in CKD vehicles will be reduced to between zero and 5% in 2008 and will be fully eliminated by 2010.
Tariffs on completely-built-up vehicles (CBUs) will be completely abolished by 2015.
Meanwhile, tariffs on vehicles with engine capacities of between 2,000 and 3,000cc, multi-purpose vehicles (MPVs) and trucks of 20 tonnes or more will be gradually abolished in five years.
For vehicles with engines bigger than 3,000cc, tariffs will be cut to between zero and 5% in 2008 and totally eliminated by 2010.
– The Star
Not very beneficial to the majority of the rakyat isn’t it? I mean, the people who can afford sports cars and luxury vehicles are already rich and have the money to begin with. And with such degree of protection on Perodua and Proton, no reason for them to strive to be better, except for competition between themselves as we can see with the recent Myvi vs. Savvy battle.
Other items which the agreement covers are industrial goods, agriculture, customs procedures, trade-in services, investment, cooperation between countries, intellectual property, anti-competitive activities (what about local car manufacturers protection?), and enhancement of business environment.
The JMEPA is expected to start effect this December.
More details on JMEPA available at these links.
Motor players to gain from Malaysia-Japan FTA
Japan-Malaysia economic pact may be signed in December
Ministry of Foreign affairs Japan – JMEPA Joint Press Release Statement
Free trade agreement lifts tariffs on Japanese cars
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I’m a new reader of your blog. U did a great job there n 2 thumbs up for the creative effort. Keep blogging…
Not beneficial to us at all
Js another "Agreement Trick". Nvm, v (rakyat) already immuned to their trick long long time ago!
I don't think the Japanese cars' price will eventually go down. The government will try their best to tax from these car through excise duty or even a new structure of taxes. Don't be so hopefully. But for the sparepart, i think it helps a lot. After all, not only Japanese cars available here, Japanese motorbikes and trucks also. Not forgetting the 'selipar Jepun', no duty, affordable, comfortable. Proton, daring to change? I don't think they daring to hear the news.:))
ah…they always say only…it's not true…AFTA agreements ended up with the government exercising Excise taxes only to increase prices of vehicles. Don't expect any changes in the near future because Proton will require some form of protection for the next 10 years still…
u r right. Benefits of all these are to the RICH!!! bloody bn govt. wait until the govt introduce Goods n Services Tax (GST) in 2007 and we the ordinary people will kena lagi left, right and centre. Not to mention that subsidy of the fuel will be demolish in due time. Hellloooo? still want to give thumping majority to the BN?
Just more bullshit same as always, what more can be expect.
If the prices of ALL Japanese cars will be competitive in the next 10 years….cows can fly
Hopefully our rakyat will not be tricked into buying Japanese cars straightaway. In the long run you still have lots to pay for a Japanese import vehicle.
But if what our government is currently doing is true, then at least I can save money for an Impreza Turbo =8-D
"Well done" Malaysia!
proton and perodua are pain in the ass! using the government to stay in business. maybe our great grandchildren will benefit from this agreement
the robin hood concept….
TAKE IT FROM THE POOR AND GIVE IT TO THE RICH
This question was posted on the yahoo.com.my
“Should the government protect Proton from foreign competition?â€
more than 66% respondence agree to “No protection please. Proton needs to compete globally or sink â€
Having to raise my children, I know we to let them learn by themselves.
Our son Proton is now 30 years old, still studying in the University, and when there was a big bully push him around, father have to make a trip to the school to inform the teacher , and look for the bully.
Poor old father is now 65+ and one will imagine how long will father still need to do this.
Our son Proton graduated and started working is a big firm, at now age 40, married and have child of his own, his manager scolded our son proton and make him do the report again, poor old father, now at age 75+, DO YOU THINK HE NEED TO GO TO THE OFFICE TO SCOLD THE MANAGER.
GROW UP PROTON
i hear proton putra mk 11 already had a prototype can u show it,,,
please give proton some time….n u will see the proton model on the muzieum
one word to say: selfish government and stupid proton.
hey guys, come on!!! at least MJ is innocent!!! hehehe… Yo Harry, I'm with you man,
[Hellloooo? still want to give thumping majority to the BN?]
ain't gonna be me!!! never vote before, but if me do have to cast a vote, until my soul rest in peace ain't gonna thump any BN!!!! Green Peace that is me!!!!
Hi guys,
i am so sorry about an "obsolete" car but i have no choice. i am planning to get a Kenari – auto (not AeroSpot). Any good comments?
correction
Hi guys,
i am so sorry to ask about an "obsolete" car but i have no choice. i am planning to get a Kenari – auto (not AeroSpot). Any good comments? MYVI is too expensive for me as i have plan to continue my studies.