Thailand: “Malaysia non-compliant under AFTA”

small_toyota_hiace.jpgThe AFTA agreement requires that the 6 original ASEAN countries (Malaysia, Thailand, Singapore, Philippines, Indonesia, Brunei) cut import tariffs between each other to zero by 2010. This requirement does not apply to new developing ASEAN countries like Burma, Cambodia, Laos and Vietnam. Currently it has been agreed that automotive tariffs on CBU vehicles and CKD kits are to be lowered to 5%.

Thailand says it will not reduce it’s import tax on CBU vehicles from Malaysia to 5% and will maintain it’s current 20% import tax, as it says Malaysia has imposed non-tax tariff barriers on it’s automotive industry despite reducing it’s import tax to 5%. Thailand Fiscal Policy Office director-general Naris Chaiyasoot says Malaysia’s requirements for automotive manufacturers to register for approvals is a non-tariff barrier and this does not comply with the AFTA agreement.

This might affect the competitiveness and profit margins of made in Malaysia automotive products exported to Thailand, like the new Toyota Hiace van announced recently.

Source

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Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • KY (Member) on Jun 19, 2006 at 10:03 pm

    can you say EXCISE DUTY?

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  • mystvearn (Member) on Jun 19, 2006 at 10:08 pm

    More like padan muka to malaysia

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  • jtshin (Member) on Jun 19, 2006 at 10:24 pm

    AFTA Agreement will be crashed if Malaysia continue to do like that. If other ASEAN countries which are in AFTA Agreement agree with what Thailand did, Malaysia will be the one beating itself up. Malaysia did it cos the National Treasury doesn't hv more cash and they need it, n one more is our country's so called automotive policy to protect Proton. Can anyone do anything? can the Govt wake up? Hope Pak Lah wakes up n find some solution before it gets worse…

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  • motorhead (Member) on Jun 19, 2006 at 10:25 pm

    Paul, non-tax tariff barriers = ED tax & sales tax?…

    Import duty now 5%, but ED tax is still 75% for CKD & 125% for CBU.. anyone of us here knows any country do the same thing like msia??.. if CKD ED tax lower to even 50%, xde org nak beli poton or produa.. civic 1.8 with current tax, just 113k!!.. avanza (plus tax) now can get 57k on the road, with cash discount ofer this month.. see how competitive they r…

    Cant forget somebody said poton get no benefit from NAP… but gov benefit the most…

    ps: Finally we all can make patriotic contribution….

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  • mycar_stolen (Member) on Jun 19, 2006 at 10:44 pm

    malaysians need this pressure from outsider to teach something for this stubborn G who only know how to channel money into their pocktes(and cronies off course)….

    the main culprit is Proton……

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  • motorhead (Member) on Jun 19, 2006 at 11:29 pm

    UMW toyota is the victim in this matter… ni la susah nak bisnes in msia.. policy mcm2…, can change overnight some more.. like our petrol price.. nak tido pun x senang.. UMW toyota towkehs oso penin lalat….

    Msia boleh, tax boleh, kita sendiri kena tax, padan muka.. sorrylah UMW…

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  • DAN (Member) on Jun 20, 2006 at 12:08 am

    dont laugh to much , is we all become victim that work for all who people that spoon feeding minority, who ? u me o dog!

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  • cimok (Member) on Jun 20, 2006 at 12:12 am

    pergggh UMW victim.

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  • Joe Ooi (Member) on Jun 20, 2006 at 12:44 am

    So, now Malaysia get "boomerang" lol, if Proton export there, then Waja may price RM 90K to RM 110K, and Civic, Sentra or Corrola Altis price around RM 50K to RM 65K, he, he, he, ………… see who buy Proton outside Bolehland …

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  • Initial D (Member) on Jun 20, 2006 at 1:28 am

    ha….it will be gd if it publish in front page newspapers…….all will know wat happen………then newspaper will be flooding wif comments from readers demanding the G to remedy it…….remove the barriers!!!!!

    Cheers!!!!!

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  • kt71 (Member) on Jun 20, 2006 at 1:51 am

    It doesn't matter for Proton, they survive on us, and all this while Proton export doesn't makes any difference with AFTA or without AFTA.

    Ridicoulous financial deal are being offered to overseas buyers, something like half sell-half free kind of deal, so to throw some cars on overseas roads.

    Looks like now it is better to loose face than to loose money for Proton. Proton cannot afford to loose us. Like a leech sucking blood, it will not let go so easily.

    Padan muka to the voters.

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  • farnaway (Member) on Jun 20, 2006 at 2:26 am

    I think there are two issues Thailand is not happy about: (1) excise duty & (2) AP as a form of non-tariff barier.

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  • kendo (Member) on Jun 20, 2006 at 2:48 am

    BRAVO

    THANKSIN tanks,

    keep Up the GOOD SCOLDS"

    and bring it up to

    WTO, UN,

    for the RAKYAKS

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  • lenker achse (Member) on Jun 20, 2006 at 3:08 am

    see even thailand protect their interest…

    chicken and egg thingy you don't reduce I don't reduce.

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  • cyborgx (Member) on Jun 20, 2006 at 3:39 am

    only soh@i will buy Proton outside Bolehland. :/

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  • szw (Member) on Jun 20, 2006 at 4:20 am

    no comment , lolz !

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  • RCM (Member) on Jun 20, 2006 at 4:36 am

    thai is protectin their country..doing everything they can..so its undstandable what msia is doing now with all the NAP, tax etc..

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  • Pentan Sakua (Member) on Jun 20, 2006 at 5:06 am

    Aiyaaaaa….20% oni ka….Thailand punya orang tak tau kira la….Should be 200%…..Baru padan muka kita…….I agree with Thailand until our G reduce all tax to only 5%…..

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  • Joe Ooi (Member) on Jun 20, 2006 at 5:24 am

    Welcome to TomYamLand, Sawadeecraaaaappp …….. Aiyuyu, this Prewtun wan to closs Bkt Kayu Hitam into Tailan. Welcome2, ……….. let see we are good in copy in leather product, we oso can copy the CarTaxLand pills. Let P1 taste the bitter. OK let we as Thais tax them up to 280%, see what are the selling price for Bolehland P1 cars after CarTaxLand imposed on P1 as CBU into Thailand: –

    1. Padana 2.0L, ok lah after tax selling price is RM 135K. Other like 2.4L for Camry, Teana or Accord selling at RM 100K to RM 120K.

    2. Wajia 1.6, aiyo this ciplak Lancer ok lah after tax sell at RM 95K to RM 120K. For Civic, Corolla Altis, Sentra sell at RM 50K to RM 65K.

    3. Jen-2, smaller a little bit than Waja, OK lah after tax selling at RM 75 to RM 85 K. Put same class with Vios and City selling from RM 45K to RM 55K.

    4. Wila, no, no, a little old like apek, not allowed to import. “walk also not stable, how about run”- safety not ok.

    5. Iswala – alamak, thisgrand father stone-age car, what? This is this big no, no cannot import. Thai live is more expensive than Bolehland rakyat!

    6. Sawi – wah this no backside small turtle, OK lah after tax selling at RM 90K to RM 105K same league with Yaris, Swift, Jazz, Aygo selling from RM 35K to RM 55K.

    7. Satlia Nio – Waulaueh new babe on the block, ok lah after tax selling at same with Jen-2 from RM 75 K to RM 85 K. So same class with Vios and City as well.

    So, to all freak Protonians who are so PATRIOTIC quickly seize the opportunity to conquer Siam first to “test the water”. If like to claim Japs and westerner come to bolehland to enrich them. Now are the opportunity for Protonian to go outside Bolehland to do the same, if cannot collect Yen, Euro, USD try collect Baht first as training ground. Show your patriotism by become distributors. Put up a good fight for the rakyat outside RM zone.

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  • RCM (Member) on Jun 20, 2006 at 5:50 am

    Paul!! Could you control this place also?…We want good discussions..No to spreading hatred & extremisme..

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  • Joe Ooi (Member) on Jun 20, 2006 at 5:51 am

    Ooooops, something miss up, the "big" guys like biggie and bigfoot interested to sale biggest P1 car – Cancell Lor, so check with Thais the tax is max 280%.

    Cancell Lor = RM 138K + RM 386.40K = RM 524.40 K only lah, "cheaper" than equivalent Mercs S-Class by few RM hundred K.

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  • Joe Ooi (Member) on Jun 20, 2006 at 6:57 am

    RCM – Don't try to be "enforcer" or have "3rd class moderator mentality". Don't try to tell Paul Tan what to do and tell other what not to do.

    By all means and honesty from your heart. List down what are the criterion or traits which in your opinion are constitute "good discussions". I would like to get the words from "horse mouth". Let me analyze how far you can go in legal perspective.

    Also, with your honesty, how do you classified and categorize "spreading hatred & extremisme.." because I check with Oxford Dictionary, this two words carry legal and political implications? Please list down with full honor as your statement seem try to project yourself as "SAINT GUY"! I would like to listen, hear and pay full attention on your "holy view"! Please show your boleh spirit! Let you tell all Paul Tan visitors this is the "sacred rules" all have to follow!

    Please take up my challenge on the above. Nothing wrong and everything are correct!

    Back to biz, Malaysia shall take remedial actions to make good any non-compliance of AFTA or any other FTAs as it will have repercussion to other goods and services like agriculture sector. Any action shall have holistic view on all sector, rather than deal with it on piecemeal basis.

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  • kt71 (Member) on Jun 20, 2006 at 6:57 am

    Our country earns more money if it becomes hub for car assemblers. Local SMI for car components and supporting services will propers. Many times more people will be employed for the industry. Our people will enjoy safer and quality cars without those protective taxes for Proton. Fatality rates at road accident will be reduced.

    Who says rakyat should sacrifice for a Berhad company?

    He is the real traitor of our country.

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  • Joe Ooi (Member) on Jun 20, 2006 at 7:13 am

    kt71 – "Who says rakyat should sacrifice for a Berhad company?

    He is the real traitor of our country."

    Who ah? – Rakyat Ciplak Malaysia

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  • jtshin (Member) on Jun 20, 2006 at 7:40 am

    Joe Ooi said,

    June 19, 2006 @ 9:24 pm

    So, to all freak Protonians who are so PATRIOTIC quickly seize …..

    ________________________________________________________________

    Well Joe Ooi, by using this sentence, u're starting to lit a fire again. wat RCM said is true and you don't need to say anything about wat RCM said. He's just suggesting. Anyway, I suggest that u don't use this kinda sensitive words like above that can let others wanna shoot you again so we can discuss peacefully here. and those who wanna reply his comments, please leave him talking alone. Thanks. don't start again.

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  • Joe Ooi (Member) on Jun 20, 2006 at 7:52 am

    jtshin – noted your comment. "Peace talking is the jargon."

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  • aksMs (Member) on Jun 20, 2006 at 12:36 pm

    Joe, you've got a yellow card once. Don't la push it again. Another yellow card will get you a red card you know! But Paul is Pierluigi Collina here. He's been cool all this while. So let's all play it cool too. No need to shoot others, directly or blindly. I'm not shooting you Joe. I'm reminding myself too. =) -Peace!

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  • aksMs (Member) on Jun 20, 2006 at 12:55 pm

    Anyway, what the Thailand government did should teach Malaysian policy maker something. In fact, they should've known that even us, the rakyat didn't agree with the so called "National Automotive Policy"! Besides, I don't think Syed Zainal really need all those protection. If given the space and freedom long time ago, I don't think they'll look as bad as they are today.

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  • Bigjoe (Member) on Jun 20, 2006 at 2:56 pm

    Proton is capable of single handedly destroying AFTA, putting a screeching stop to regional market integration. The truth is ASEAN formula does not work anymore, born out of a common communist enemy, its was never an economic grouping. If not for communist Vietnam and military Burma, ASEAN would be largely ignored.

    There is nothing in ASEAN to punish states that renegade on their promises. Burma is a clear example and Malaysia's Proton is the other. Without it, regional integration is a pipe dream. LKY understand this and on a regional visit to China stated it clearly that ASEAN free trade area is a pipedream. Singapore has given up on it and instead looks to China and India for more liberal trade and investment policies. It pursues unilateral free trade agreement in hope to prise open one market after another. The last place it hope for free and fair trade is with Malaysia.

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  • rexis (Member) on Jun 20, 2006 at 6:02 pm

    Good, we need somebody, anybody to make noise about the AFTA.

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  • whatsoever (Member) on Jun 20, 2006 at 6:24 pm

    honestly, this is the minute that i waiting for. I have been asking the same question over and over but nobody can answer me. Well at least Thai answer my question.

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  • motorhead (Member) on Jun 20, 2006 at 7:03 pm

    Thais suda kira generous give 20% only.. if bagi 75% like our ED tax, we can dream la export our cars to thai.. good lesson to our policy makers, one slap on the face.. i guess japs oso not very happy with our situation now… so remember gov, whatever we r doing, people can do it to ourself back… so at the end, tiada siapa yg untung, our market oso will never grow… jual domestic aje la… brapa sgt boleh jual…

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  • kt71 (Member) on Jun 20, 2006 at 7:17 pm

    I don't know why people still thinks this will have an impact on the Goverment. This is not yet a lesson. To survive, Proton cannot loose us but can loose Thailand or any other AFTA country. Who cares?

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  • Joe Ooi (Member) on Jun 20, 2006 at 7:31 pm

    kt71 – But today and in the near future our local auto market look like rakyat have visible yet plenty of choices, and to a certain extent they lose some of us if not all (40% to 30%). Below cetain percentage point, then P1 may become "critically ill", NAP pills also can not help!

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  • Bigjoe (Member) on Jun 20, 2006 at 9:45 pm

    Why is AFTA important someone asked? Because Lee Hsien Loong is going around telling every major company in thw world if you want to set up regional centers, you set it up in Singapore because Singapore only Singapore is AFTA compliant and more with FTA with every major economies in the world. So while we are happy to wallow in our market, Singapoire is getting major drug companies, major service centers, major design centers of these companies. Do people know that oil&gas center in South East Asia is in Singapore but Singapore has no oil or gas. Even major auto-electronic design centers are in Singapore!!!!

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  • Joe Ooi (Member) on Jun 21, 2006 at 12:53 am

    Bigioe – So, NAP have "domino" effects to all sectors of the economy!

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  • topgunthang (Member) on Jun 21, 2006 at 10:47 am

    japan and thailand have been screaming the same thing all the time…..but the gov does not change anything. either that or some 'presents' have been exchanged. just to shut them up. the country has to sacrifice so much more for proton. having singapore, thailand snapping up all these economic victories is disgraceful. we lose our top talents to singapore, now we losing economic ground.

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  • kt71 (Member) on Jun 22, 2006 at 5:14 am

    Joe Ooi – thats why they cannot let go of the taxes. if P1 going to loose the last 'suap of nasi', that's the end.

    topgunthang – losing ecomonic victories is not considered as disgraceful as losing a Berhad company for some silly people. Even if one day the Berhad became successfull, it is actually already a failure given that so many things has been sacrificed. Trading blood with honey is stupid.

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  • Akazamabamaboo (Member) on Aug 21, 2006 at 6:17 pm

    Malaysia = Jaguh Kampung

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  • domoteka (Member) on Aug 24, 2006 at 1:11 am

    How disgraceful of you people!!! How can you be so Un Malaysian!!!!

    In the spirit of "Malaysia Boleh!" and "Keranamu Malaysia!" we Malaysians must bend down and let "them" kick us in our rear ends! All in the Merdeka spirit!! Just think we managed to break loose from a dictator thousands of miles away and breed our own elite "Malaysia Boleh!" dictator.

    Because Malaysia Boleh!, our pride and joy Proton and Perodua can be sold in UK at Wira(persona) for 6000GBP and Kelisa for 4842GBP thousands of miles away from Bolehland! Oh yes dont forget an Iswara in Irag can be sold for USD5000!!! MALAYSIA BOLEHLAH!!! No other people in the world can achieve this!!! We surely should get a place in the Guiness Book of Records for the cheapest, crappy, lousy car sold in another country other than the origin country. Hey that's not Malaysian enough we should create a place in our very own Malaysian Book of Records. Hmm I see, we can have a place for the most expensive, crappy, lousy car sold in origin country other than any other country compared to the price of same car in other country thousands of miles away!

    "Keranamu Malaysia", we shall buy our own crappy cars more expensive than it being sold in another country thousands of miles away!

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  • oranglulu (Member) on Aug 24, 2006 at 1:35 am

    with etc etc etc policy and protection,why are we still getting low grade expensive national cars?if you travel to oversea and look at our proton vehicles there,my god,how come we dun had this or thats,they have and cheaper then us,though travel 1000miles aways,how are we going to be proud of our national cars when we are getting sub standard cars compair to foreign country.expensive some more.

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  • domoteka (Member) on Nov 20, 2006 at 7:55 pm

    ditto my previous post….

    bolehlah malaysia!

    keranamu malaysia!

    matilah kita(rakyat biasa)!

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