Thailand gives Malaysia AFTA rates, finally
Thailand has finally granted Malaysian AFTA CEPT preferential rates, dropping tariffs for items coming into Thailand from Malaysia from 20% to 5%. Full details of this approval would be announced later by the Finance Ministry of Thailand.
It previously refused to grant Malaysia the lowered rates because it said Malaysia was not AFTA-compliant because it has an Approved Permits system which Thailand said protects Malaysian automotive companies, creating an unfair environment. Malaysia managed to convince Thailand that the AP system is only to check details of imports and not to protect the local auto industry.
I suppose UMW Toyota can breathe a sigh of relieve now as it can now export it’s locally assembled Toyota Hiace vans to Thailand without being slapped with a 20% tariff which makes it’s prices uncompetitive. It is also good news for Isuzu who recently took up a controlling stake in MTB Sdn Bhd and has decided to make Malaysian one of it’s foreign manufacturing bases.
June 26, 2007 @ 9:59 pm
What about Toyota cars (like the new Camry) … would it costs as it’s made in Thailand and sold into Malaysia market ?
June 26, 2007 @ 10:09 pm
Wow… prolly we could see price drop among popular japanese cars in malaysia. I think the Jazz and Camry came from thailand right? What else came from thailand nowdays, other than tomyam cooks?
June 26, 2007 @ 10:10 pm
Guys, don’t misunderstand the article. These are taxes for Malaysian cars going to Thailand.
Thailand cars coming into Malaysia for us to buy has enjoyed the CEPT rates for quite some time.
June 26, 2007 @ 10:20 pm
oh crap… cheap cars are still faaaaaaaarrrr in the horizon
June 26, 2007 @ 10:28 pm
o_O i tot the title already very obvious
June 26, 2007 @ 10:39 pm
Japs making BIG money now
1) FTA with Japan means CKD parts from Japan much cheaper.
2) Industrial Adjustment Fund, meaning if you have ‘local content’ u can get significant tax exemption.
3) ASEAN parts including Thai, Indonesian, Phillipino now all considered ‘LOCAL PARTS’, so more exemption as per point 2
4) For some years now no more MDL (Mandatory Deleted Items) where before makers MUST source things like windscreen, wiring loom, audio, etc. from local makers
But man in the street doesnt know so … their retail prices remain the same, PROFITS shooting sky high .. Toyota, Honda and Nissan. Plus scared of dropping price, resale value, etc
June 26, 2007 @ 11:07 pm
so cars coming into Malaysia from Thai still kena high tax?
June 26, 2007 @ 11:08 pm
WTF? Since when AP is to check details of imports? It has been around to protect Proton!
June 26, 2007 @ 11:26 pm
when did m’sia doin dat ?
June 26, 2007 @ 11:27 pm
I tot i saw news in Chinese new paper say that the AP for Asia already abolish.. So now AP is cancel, but for Europeans and Americans car’s still need AP… And 1 more.. I think yesterday, a representative from Euro nation want to boikot our Malaysia free trade agreement.. Saying our country is too protective on some section. Well car’s, simen, metal, oil price of course.. Maybe is the VW pushing them to us? And the another issue is the oil palm issue.. The enviroment group saying that the oil palm is destroying the jungle and the lifes of orang utans n other endanger spesis.. Well in peninsular i think the most is tapir n harimau.. But in Indonesia n sabah.. Emm..
June 26, 2007 @ 11:33 pm
If i not mistaken, Toyota, Nissan, Ford and mazda cars should be cheaper after Ap issue is abolish… Last time, i heard rumours say 1 AP are charge RM20k-RM40k, if really AP tak da.. Well those secondhand recon cars will sure cheaper then those new car selling in Malaysia! And Maybe those new cars dealer can discount more in this Decembers and take it another year as promotion! Well, Toyota (Thailand) is going to sell more in our country this year.. coz they are going much cheaper if this true..
June 27, 2007 @ 7:45 am
GOOD NEWS for Proton, Perodua and Naza.
June 27, 2007 @ 8:01 am
“Malaysia managed to convince Thailand that the AP system is only to check details of imports and not to protect the local auto industry.”
They sure know how to convince them. Only to check the details, just like stock count huh? This is good news to Toyota that wants Malaysia as Hiace assembly base.
June 27, 2007 @ 8:19 am
wahlaueh…
nothing to be happy with this piece of news, it doesn’t direct affect us at all… the new car prices still at sky high level.
Thailand why are you so easily cheated by Malaysia G… They give you some incentives to wave it???
June 27, 2007 @ 8:45 am
AP is never to protect local car industries, its to enrich certain people, the easy way. Guess rafidah will still be in the cabinet after next GE.
And there goes my hope for cheaper cars.
June 27, 2007 @ 8:46 am
No!!!!!! Thailand don’t do it!!!!!!!! Your southern states will buy cheap Protons and use it as guided bombs!!!!!
June 27, 2007 @ 9:02 am
Mmm, this is not a good news, this simply means that Thailand really think that AP is to collect import information or the finanace minister being granted a few AP himself.
And people holding AP will continue to AP all the way. Apalah!
June 27, 2007 @ 9:48 am
Malaysia managed to convince Thailand that the AP system is only to check details of imports and not to protect the local auto industry.
AP is to make a group of people rich lah, no other reasons…… the whole country knows.
June 27, 2007 @ 10:07 am
Topic AFTA but people posting on AP? How lah.
June 27, 2007 @ 10:25 am
maibatsu: Thailand initially refuse to give Malaysia AFTA rates as they accuse our AP system being unfair. Now they somehow accept that AP system is not discriminating and Malaysia is really AFTA compliant.
June 27, 2007 @ 11:41 am
AFTA and AP is the SAME in Malaysia… Ask the G who connected both to protect our P1..
June 27, 2007 @ 12:11 pm
So will they implement excise tax of more than 50% for Malaysian sourced cars imported into Thailand?
So what if Malaysia imposes import tax of only 5%. They raised the excise tax to recover what they lost out in import tax. End of story, layman like us still stuck with expensive cars..
June 27, 2007 @ 12:11 pm
its good news to our exporters sending goods to tomyam land.
but does it do any good to our public buying stuff from there as well?
June 27, 2007 @ 1:24 pm
how they hell they managed to convince the thai gahmen that AP is only to check import details, we will all never find out!!!!
either the thais are much more dumber than us, or something must have transpired, becos the stupidest people in the world will know the AP is to protect proton. all imported cars in malaysia are made expensive by these APs.
the gahmen really think we malaysian rakyats are stupids.
June 27, 2007 @ 1:47 pm
To me thats bad news.
The more foreign pressure, the more likely there will be changes made.
AP for statistic collections only, heh..yeah right. God knows how they managed to “convince” the Thai authorities over that one.
June 27, 2007 @ 2:55 pm
This is reality.. people must change to cope the globalization. If we dont change, we will end up like what north Korea, Afghanistan, and some African countries does… China also change drastically, India is coming too.. if we slower than them, haiz.. mati ditelan oleh mereka..
June 27, 2007 @ 3:15 pm
The reason why Thailand allow import of Malaysian cars now is that our govt at last removed restrictions on the number of AP’s that manufacturers are given to bring in CBU cars from Thailand.
So now UMW can have as many AP’s as they want to bring in Toyotas assembled in Thailand. They do not have to go through ‘third parties’ and pay hefty premiums. In the past, people like UMW had to resort to ‘buying’ AP’s once theirs are used up. However, for cars imported from non ASEAN countries, the rules and tax structure are different.
The interesting thing is how our local newspapers presented the news. I think it is a matter of saving face that the removal of restrictions on number of AP’s is separated from Thailand’s agreement to the reclassification of Malaysian cars exported to Thailand. It was actually quid pro quo.
We do want to be seen as bowing to the demands of Thailand, but that is what’s happening. I think Thailand has strong grounds not to allow Malaysian cars to qualify for AFTA duties, because of our AP system. Now their patience is rewarded and I’m sure there are many red faces in MITI.
June 27, 2007 @ 3:24 pm
U mean those red faces officer cant makan more already lol.. Padan muka.. Anywayz UMW also own by Tun Dr.M n other high rank officer.. So i predicted this will happen before open market by 2010.. Even Dr.M Lexus is given by UMW, a little bit of Dr.M n supporters help should be easy..
June 27, 2007 @ 8:08 pm
AFTA or not AFTA also same!
G still want to tax!
where does these tax goes ?
you should know!
June 27, 2007 @ 8:16 pm
Decepticon pls come and destroy our G! Autobots pls protect our money from being sux by the G! LOL!
June 27, 2007 @ 8:54 pm
yep! still not enough cheating rakyat. now even wan to go cheat neighbourhood country rakyat.
June 28, 2007 @ 8:35 am
Toyota avanza is also sold in Thailand as cbu. As i know, this car is assembly in Malaysia n Indonesia only. So in Thailand, this car is import frm where???
Frm Malaysia or Indonesia???
June 28, 2007 @ 12:02 pm
Here in Thailand, all avanzas come from indonesia. Those have to re-furbish the interior in TAC factory ( JV of toyota ind izusu) like hiace from Msian.