Sime Darby’s NAP plans

Sime Darby is determined to take full advantage of the incentives the government has given in the new National Automotive Policy.

The National Automotive Policy’s new incentives encourages foreign automakers to assemble their vehicles here in Malaysias, thus turning Malaysia into an automotive assembly and distribution hub for the ASEAN region.

Sime Darby has long been a major player in automotive assembly and distribution in Malaysia. They have an Inokom assembly plant in Kulim and a BMW assembly plant in Shah Alam. The Inokom plant assembles the Atos and Matrix cars, and the BMW plant assembles the E46 and E39 BMW 3 and 5 series for the local market. Sime Darby is currently looking into assembling the Hyundai Getz in the next 12 months and the new E60 BMW 5 series by Q1 2006. Next up would be Hyundai’s saloon models – the Accent, Elantra and Sonata, and BMW’s new E90 3 series. The group intends to export both local assembled marques.

Sime Darby group chief executive Datuk Ahmad Zubir Murshid said that BMW was originally interested in assembling all it’s models in Thailand and bringing them over to Malaysia to take advantage of the ASEAN tax breaks, but now it makes more sense for them to assemble the models in Malaysia. Sime Darby also intends to become the ASEAN hub for Hyundai cars, eventually.

On the rumours of Sime Darby taking over Khazanah Nasional’s stake in Proton, Datuk Ahmad Zubir said Sime Darby has always been focused on assembly and distribution, so going into manufacturing is very tricky. There are no plans to take up stake for the time being as they have no experience in automotive manufacturing.

Source: The Edge Daily, StarBiz

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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

  • whatever been say and done, Malaysia auto industry expecially the manufacturing is not mature. BOTTOM line I wish to see the price of cars come down.

    I pay a BOOM for the RM48k for the Myvi

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  • eMalaysian on Oct 26, 2005 at 9:50 pm

    That's right man. Bottom line is affortable cars. We should acheive a standard that we don't need 9 years loan for car. I've stayed in barat before and I know that most don't take loan for a new car.

    Malaysia Boleh.

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  • Joshua on Oct 26, 2005 at 9:59 pm

    in other countries, fresh grads like me can get a nice car with a 2-4yr loan. but in malaysia, most of us had to get a 7yr loan instaed. and it sucks.

    Myvi is already considered reasonable priced seeing that we can get a car with ABS and airbag at Rm51k. but still its expensive when compared with other countries. :P we want lower prices, cars and fuel as well!

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  • bloody seconded. we should not be forced to pay extra (and i do mean EXTRA) than the normal retail price. Of course they will be taxes etc etc but about 80K for a car in the vios/city class is abit expensive. Not to mention the interest involved.

    the money from all this tax used to build landmark like KLCC etc etc but should be used to further develop the country's infrastructure in ALL PARTS OF MALAYSIA.

    I live in Kuching (sarawak), and we almost dont see any benefit from it… we ask for better road, improvement etc but G say no money and suddenly KLCC come out lar, KLIA (so empty inside). We are the richest in the country in terms of natural resources and our GDP (gross domestic product) also the highest.. why the fark we so poor? i remember i heard about some tourist guide in KL tell foreigner that Sarawak ppl live on tree and he point to Brunei instead of Sarawak in the map.. if i really see sum1 do that i will chase him on my crocodile..

    i also get alot of those comment from Semenanjung/Singapore ppl " you really live on trees ah?" or "got shopping centre there onot??" or "How you come here? got airport meh"

    i know this is abit out of topic, heheh, but goddamn it, if you are going to charge us ridiculous taxes on a neccessity (the way i see it, BUSES are out of the question in malaysia) you might as well put it to good use especially to those who deserve AND need it. Kuching is drastically underdeveloped despite being a tourist attraction and many foreigner flock here during the Rainforest festival!

    or just make Sarawak like labuan lar.. free trade zone… Honda Accord new one rm50,000 only huh. knn

    this is abit out of topic but

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  • Charger on Oct 26, 2005 at 10:47 pm

    Haha, so now they have this talk about assembling Getz in Malaysia again huh?

    That was mentioned like a yr back ago.

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  • hehe ignore that last line, probably some of the html/java/sql died.

    BTW Kuching has an INTERNATIONAL AIRPORT under heavy renovation with PLANES in it! LOL

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  • Selipar on Oct 26, 2005 at 10:50 pm

    i agreed with edw, eMalaysian & Joshua…

    in UK, newly hired non-exec. can buy a car after the 2nd salary pay due to very low in downpayment & low interest & cheap car (esp. japanese/korean made)…installment period is around 2-3 years time…as compare to our shore…i do envy others country in terms of this..sigh.

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  • yup,

    during my stay in australia you work part time in Mcdonalds (only 15-16 kids work there, so i dont even wana apply) you can earn $12 an hour starting pay… WTF.

    yeah living cost is higher, but at least they can still buy the things they want instead of dealing with lower quality substitute products with their national flag on it..

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  • Selipar on Oct 26, 2005 at 10:59 pm

    swee…i've been to kuching before now "bandaraya"…i just don't get it people are saying sarawakian people still living on the tree..for me it is such a wonderful & interesting places with nice & friendly people….

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  • ya loh :(

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  • Selipar on Oct 26, 2005 at 11:06 pm

    swee…why don't you just bash those people who critisized sarawakian badly…if people ask u wheter it is true or not…just say even we live on the tree, we need to use lift to go up & down…watching astro when get bored, surfing to get info..etc… sure they feel embarrass

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  • thanks selipar for tat comment. yeah.. sarawak mite not be as developed as west msia(dependin which part, cant compare to kl) but its rising fast now. i love my town sibu, good food, ppl (erhem, depends),etc. cost of living is lower , and we get all we need to live comfortably. i had a teacher from west msia last time, before she came here to sibu, she was very reluctant for the posting after hearing 'rural sarawak'. den after 5 years, she didn't wan to go back to the west. yeah ur last comment's a good one, hehe. :)

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  • ROFL, i will just tell them we use crocodile to move around and use the vine swing from tree to tree (house)… and then the richer family got bigger or more crocodile to bring them around. During chinese new year we have big bonfire in middle of hutan and everybody dance like red indian and cook a horse in the fire to eat.

    Every once in awhile a lucky sarawakian may use a raft to sail to semenanjung and make it big, then finally can use heli to transport their family over for nice living.

    Also 20% of sarawak is headhunter, so watch out!!!

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  • keniji on Oct 26, 2005 at 11:54 pm

    THAT MEANS WE WILL GET

    GLOBAL FAIR CAR PRICE:

    BMW3 AT RM150K

    HYUNDAI GETS AT RM35K

    LIKE THOSE AT THAI, CHINA…

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  • SEE FU on Oct 26, 2005 at 11:56 pm

    Swee,

    I had never been to Sarawak nor Sabah before but some friend of mine living there and working there too near KUCHING. The city is nice and ppl are friendly too. I only saw some photos and wish I could visit someday, I like the place especially the green forest too.!!!

    BTW, I am interest your last warning …….>>20% of sarawakian are headhunter!! Wow I like it!! I wish I could feel it!! Wow more exicited than BanGI Jump man!! When can you introduce one to me?? can Arr?? Joking!!

    As You may know, in KL there are many Headhunter too!! Recruitment company lol, I am hunting ppl too, anyone wish to join my Company arr??

    YAU MO KAU……CHOU!!!!

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  • har har headhunter now obviously against the law :P

    i wana move to KL… more people = more chiobu!

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  • aksMs on Oct 27, 2005 at 2:00 am

    Hehehe…really off topic already.

    Swee: I'm so puzzled when you said Sarawak didn't get much of it's share from the Gomen. Err…have you ask your CM (Chief Minister)? I heard he's getting richer and richer…..hmmm…I wonder…..

    Anyway, 35K for Hyundai Getz….? Cheaper than Myvi? Are you trying to make a joke? Hehe. Naah…I don't think so. Even the British pays extra for it. I don't expect it to be lower than 60K. As for BMW, I can see more people are buying it now compare to 2 3 years ago. Errr…any problem with the locally assembled BMWs?

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  • talk about sarawakian live on tree. only stupid ppl say that because they their mum teach them to talk without using their brain. They use their diCk to think only. why?

    If Kuching live in trees, then all these west malaysian live in cave. (except Selangor, Penang, KL). Kuching is much way developed than all these towns so they are NO FIT to tell us living in tree. Come over and see, you get all the proof you need.

    I have been to several west malaysia town and OH PLEASE, they are even more worst develop than Sarawak.

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  • hopefully the getz car prices will drop soon.

    to GGG,

    oh man…you show ur immature attitude and used bad word in this public blog.

    shame on you.

    p/s: paul, do something about this.

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  • gegaoff on Oct 27, 2005 at 7:03 am

    tell those brainless, that yes we live on tree because we love the earth. we taking care the environment. tell them we also plan to burn the forest to fight back the other side (indo) next summer.

    what the hell in their brain? all grass?

    cham…

    cheers…

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  • try to keep the discussion within the topic. i dont see how kuching has anything to do with sime darby's future plans in the automotive industry

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  • Resurrected on Oct 27, 2005 at 10:05 am

    Hmm, it's all about purchasing power. US$13k for a MyVI is a bit pricey of course. Corollas and Civics start at US$14k till US$19k (2 doors and 4 doors), Elantras are only slightly cheaper while Accents starts at US$9k (closer to 10k).

    Even if you convert the base prices :

    Accent starts at RM35k

    Civic/Corollas start RM 53k to RM 72k

    before tax and accesories.

    It is unlikely that the carmakers will sell these cars in Malaysia at such prices as the US is a highly competitive, and it is a maturing market (margins are low here for cars and many choices to choose from and it's a volume business here). Growing markets like Malaysia are good for high margins/premium pricing.

    So I wouldn't really be able to say for sure that the absence of national car projects will push down the price to such a level that we can have car prices as a small fraction of our earnings per annum. At the end of the day, based on cost and the margins carmakers have, we would still be paying through our nose for cars, albeit at lower than current prices. This is just because we don't have the sort of earning power.

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  • Resurrected on Oct 27, 2005 at 10:10 am

    As for Sime Darby, they need to do more in promoting the Hyundai range as it's now divided between them and Oriental. Some form of co-operation will augur well for them. They do have the know-how in assembly but their service centres and sales/promotion if are the same as their Ford range, it just wouldn't work. Their Ford stable is a classic case of a well-known brand with a good range of cars (but not brought into Malaysia for various reasons) but lousy consumer awareness. I drove a Ford befoe and the service centre is inefficient. Now they even shutdown one in KL. They need to manage things better.

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  • MyBoy on Oct 27, 2005 at 6:07 pm

    Are they still assemble E46 3-Series in Malaysia? Why dont they assemble the NEW 3-Series (E90) instead?

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  • epalhead on Oct 27, 2005 at 6:08 pm

    i've lives in UK …..i worked there, as a mando (some sort of like that) for team of building cleaner. I earn 250 pound/month. My wages is paid weekly. So one month I earn about 1000pound.

    Guys,

    Perodua kelisa is priced @ approximate 5000pound

    Honda jazz @ 11000pound

    Toyota corolla Altis @ 16000pound

    Impian/Waja @ 11000pound

    Gen-2 @ 8000pound to 11000 pound

    and so on so forth…..

    Guys….

    calculate the car price/wage ratio in UK…..

    take waja for instance for instance…..

    11000/1000 = 11.

    compared it to malaysia;

    Engineer salary @ 3000/month

    60000/3000 = 20

    guys….what can u all conclude????

    and if u lives in UK….the petrol price is @ 0.95 pence/litre (those days, now i dunno)…..with that salary, i can't be rich but still, i can buy petrol…this is simple math. if u want to compare the oil price @ UK after conversion to RM, make sure u convert my salary too….

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  • SEE FU on Oct 27, 2005 at 6:57 pm

    Epal arr!!

    I found mistake in your SIMPLE maths lah, how???

    I earn 250 pound/month. My wages is paid weekly. So one month I earn about 1000pound.

    You are earning 1000 pound in 4 months or 1000 per month??

    YAU MO KAU…..CHOU!! Rm6000 per months just cleaning the wdo??

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  • kanasai on Oct 27, 2005 at 9:07 pm

    is suppose to be 250 pounds/week la.. i can tell u that epalhead is telling the truth as i been there working before. 1 month u can earn 1000 is easy la. just to cleaning or even operator will make earn this much. here in bolehland 1 hour earn RM 4 but there in UK one hour we can earn 4.5 pounds at least. During my time i have once earn 5.50 pounds working in a factory. most operator in that fac there from central europe owns at least honda civic second hand. darn cheap but insurance expensive oni la.

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  • SEE FU on Oct 27, 2005 at 10:53 pm

    kanasai arr!!

    If over there can find easy money, why you still come back to Bolehland?

    Due to Living standard too high or any other problems at UK??? Tell us more.

    Paul, Sorrylah your topic is a bit Bore so by ADDing some advertisment or entertainment will be much better! Okay lah!! YAM CHai Kanasai pay!! :)

    YAU MO KAU…..CHOU!!

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  • eMalaysian on Oct 28, 2005 at 12:43 am

    Most of us come back to malaysia because of parents, freedom of religon, friends, family, culture (and barat place has zero culture), etc. Some just love this country. And so do I. But we pay for this with our terrible cost of living.

    We don't calculate cost of living by converting currency. Its calculated by an index like how epalhead says. or by comparing car price against house/apt prices. Or car price agains GDP or something.

    Altis = 120k, House = 300k, Index = 2.5

    Altis = 120k, Apartment =120-130k, Index = 1.08

    Technically an altis = Apartment on wheels.

    In australia, an altis is not an apartment on wheels. I am not sure of other countries. There is something wrong with our car prices. I can't understand. Can somebody help me?

    Btw, I know australia's GDP is 3-4 times more than malaysia, but their car price index is lower. Why ah?

    Can the NAP help?

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  • SEE FU on Oct 28, 2005 at 1:34 am

    Wah so many of you Working at Oversea or aboard before!!

    No wonder so many complains on this and that about Bolehland lol.

    I agree that Bolehland car price is strange and I believed is one of the HIGHEST in the WOrld. Besides the car price anything else that is Higher than others countries?? I means….Food, house, …..shopping……..Can someone explains it…….come lah!! Don't be SHY…….or Malu….. no brashing one okay!!

    eMalay…sia…n,

    NAP is only a "PANADOL" means temporary pain killer, the car price will not drop until the level we are expected in other countries lah. Dreams…dreams …dreams…oh….dreams……..mmmm like the song we knew.

    YAU MOU GAU…..CHOR!!!!

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  • epalhead on Oct 28, 2005 at 1:37 am

    SEE FU

    U got me….typing error..250pound/week

    thank u SEE FU…so glad this blog have u in…

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  • epalhead on Oct 28, 2005 at 1:52 am

    eMalaysian:

    i agree wit u. most of us come back because of our family, parents, relative…everybody…this is my country. i lay my blood on it…we just luv our country.

    SEE FU:

    like kanasai said….insurance a bit expensive…the properties…(sighs) very expensive..but u could find a room apartment which is affordable.

    SEE FU:

    i'm sure u have a lot of money (from the way i see u commenting in this blog), so y dont u try look the world outside….u'll get what i said.

    for starting…try Thailand, then Indonesia…try UK….

    SEE FU:

    Happy trip…..GOD BLESS U!

    YAU MO KAU…..CHOU!!

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  • epalhead on Oct 28, 2005 at 2:04 am

    SEE FU….

    one more thing…in UK i get get a candy bar below 1 pound…80 pence like that for a snikers….here in boleh land….(sigh).2.40, 1.80,……

    u get wat i said SEE FU??

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  • Slime Babee on Oct 28, 2005 at 4:25 am

    Aiyo… Gip us ckd Alfa romeo laa

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  • SEE FU on Oct 28, 2005 at 4:13 pm

    Epal arr!!

    I am not poor and not rich lah!! Just enough lah!!

    I will consider your proposal, but one thing is……I had been to these places already except Singapore, Sabah, Sarawak, UK, India, Russia, …………..Mexico,………………………until the last journey to the Moon (about RM 3000,000,000 in year 2010 latest promotion from JAPAN tours agent). Why…….suddenly too many placeslah need to be visited and too much money lah, I don't think is Okay to do so, Epal arr, How many place you have been too???

    Why not try to advanture JAPAN or USA??

    YAU MOU GAU ……..CHOR!!!! OUt of TOPIC again…..Paul don't MARAH LAH it is all because of EPALHead.

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  • rainbow7j on Oct 28, 2005 at 10:20 pm

    I dont agree with the calculation method of the car price overseas compare to here.

    In US and western Europe, the car price is lower than here, but the price of the insurance, road tax, petrol consumption, parking, tol, all these add up to be hell a lot more higher than here.

    I studied in Germany before, and I did a calculation on getting a car there before, the car price is not so much of an issue but the cost of maintaining the vehicle is daunting.

    In a nutshell, actually it all make sense as here in Malaysia, car is more expensive but when you used it on road more it doesn't cost so much compare to overseas, especially in europe, perhaps not the case in US where gas price is lower……… on the other hand, you get to own a car easier in europe but the more you use it the costly it gets….

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  • jared on Oct 28, 2005 at 10:46 pm

    Rainbow7j,

    Pardon me but you missed a big point here. Other than car prices, owning and using cars in Malaysia is cheap. If the government sorts out the car prices then Malaysia will be one of the best places to live.

    Insurance is calculated based on risks, not location

    Road tax, petrol consumption, parking and tolls are all normalized to Malaysian standard, i.e. what we pay now is based on what we can afford derived from our standard of living.

    Your point that in Germany costs of owning a car is higher is somewhat inaccurate, because you must factor in how much salary the locals there take home.

    A simple but grossly accurate calculation is to take the average monthly income, and minus from it costs of maintaining/owning a car including hire-purchase costs.

    So, if you make RM2000 monthly and is planning to buy a Waja which is an entry level car by European standard, at least 1/3 of your salary is gone.

    Please qualify your statement by stating the monthly income of average Germans and costs of maintaining/owning a car so that we can see a clear picture.

    The argument that we should not compare to developed nations is absurd because Malaysia is 15 years away from being a “developed” nation.

    For your info, in the United States 13 years AGO, an average police officer made USD24000 annually and a base model Honda Civic 1.6 cost USD15000. So go figure where we stand now. Thanks.

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  • MAt tOUGH on Oct 28, 2005 at 11:53 pm

    Hi friends out there, I've stayed in Australia-2 years, France-2 years, Sweden-1 year, Finland-1 year and Germany-1 year under company assignments. What can I recall is that, cost of living in M'sia is sucks.

    The most important thing in live is house and transport (car). Just imagine with RM200k in M'sia, I can just only get a typical Double Storey 20ft x 70ft whereas in Australia with AUD200k (apple-to-apple comparison – without currency conversion), I can get a double-storey Bungalows for land size of typically 80ft x 80ft right in big town like Melbourne, Sydney, Adelaide etc.

    Huh..don't talk about car la…brother. Yet everyday, we all have been supple by the annoying remark from the G, that Malaysia terkenal seluruh dunia, kita ada Bangunan tertinggi di dunia bukan satu tapi dua, kita ada F1, KLIA adalah diantara Airport yg terbaik didunia (but in reality can't even beat Bangkok Airport air traffic).

    In actual, one particular example in 2002, when I was in Penang for short assignment, I've encountered one miserable incident in Hospital BM, there is one poor Indian lady (who cannot afford for Private Hospital, I guess) giving birth on the floor because the bed was full in the Maternity Section. This is very sad for a country who is self proclaimed as terkenal dan maju in the Millenium Century.

    For this, I would like to convey my deepest sympathy for those who has being the victim of the Mega Project during the Proton Adviser era, and for those teachers and G servants who took 10 years loan just to buy Proton Iswara but after 1-2 years of use, the dashboard start bergegar, tombol pembuka pintu patah, bush engine keras and many other tiny miny little annoying problem that Proton should have been made known before but yet being able to rectify it at all. Best example is the 15 years Wira glove box that till today there is still a gap that can be visualise by our naked eyes.

    For the Teachers and G servants, I pity for you guys since RM400-RM500 per month for you Proton Iswara was meant a lot of money for you…pity…pity..pity !! Zalim betul Proton and the current G.

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  • Selvenz on Oct 29, 2005 at 3:20 am

    Bro I will give you AUD200k can you get me a bungalow in Sydney…..Cmon man. I know our country has high prices for cars, houses and other stuff and our salary systems does not match the high prices…….but get your facts right, no way can you get a bungalow for AUD200k in sydney…

    !!!!!!!! its in the region of 1-Million AUD dollars or above….cause house prices there are very high. By the way i own a condo in South sydney which cost me AUD290k 3 years ago……

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  • WHAT DA FAK on Nov 06, 2005 at 5:30 pm

    heheheheh……

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  • Habib on Dec 31, 2005 at 6:10 pm

    Why are cars so expensive when half the nation is living in poverty??

    Only the strong survive, screw all the weaklings and let them burn in hell.

    In its article titled “The Mahathir Mystique”, Newsweek, (23 November 2003) terms Malaysia as an Asian success story where “the percentage of Malaysian households that fall below the poverty line has plunged from nearly 50 per cent to an estimated 6 per cent in 2000.” The figures quoted by Newsweek are lifted from Mahathir’s 2004 budget speech in Parliament on 12 September 2003. From the horses’ mouth as they say — but unfortunately some horses have learnt to bluff!

    The poverty line

    Generally speaking, the poverty rate can be lowered by two methods. The first is by raising the income of the poorer families to above the poverty line. The second method, and undoubtedly the easier option, is to lower the poverty line itself!

    Can a family of five survive on an income of RM550 per month, given the cost of living in Malaysia today? Where would they live? And can their children go to school?

    Malaysian household income distribution as quoted in the Eighth Malaysia Plan is pictured in Table 1 — with 75 per cent of Malaysian households earning below RM3,000 per month and 25 per cent of households earning below RM1,000 monthly. The same document (8MP) also specifies the poverty line for Semenanjung Malaysia as RM540 per month for a family of five individuals. Is this a realistic figure?

    A living wage?

    Table 1 – Household Income (RM/month)

    More than RM5,000 9.8%

    RM4,001 – RM5,000 5.5%

    RM3,001 – RM4,000 9.6%

    RM2,001 – RM3,000 17.4%

    RM1,001 – RM2,000 32.7%

    RM501 – RM1,001 20.0%

    Less than RM500 5.0%

    Source: Eighth Malaysia Plan.

    Can a family of five survive on an income of RM550 per month, given the cost of living in Malaysia today? Where would they live? And can their children go to school? Yet given the government’s definition, they would not be classified as being poor.

    At a meeting with 60 factory workers in Sg Siput recently, we asked them to suggest a reasonable household budget, and the outcome of that exercise is summarized in Table 2. The participants felt that the cost of buying a house and a small allocation for savings must be part of a balanced family budget. In their opinion, any family with a household budget of below RM1,750 would be facing economic hardship;

    A realistic poverty line

    Table 2 – Household Expenditure (per month)

    House Loan 400

    Marketing 300

    Groceries 300

    School expenses 200

    Motorbike 150

    Medical/Clothes 100

    Festivals/Trips 100

    Light/Water/Phone 100

    Insurance/savings 100

    Total RM1,750

    In Britain and in several other countries in the European Union, the poverty line is defined as one half the average household income. In Malaysia, the average household income is RM3,200 per month. Half this figure would be RM1,600. In other words if we used the definition used in Britain, households earning less than RM1,600 per month would be considered as poor! If RM1,600 per month is taken as the realistic poverty line, then around 50 per cent of Malaysians are poor — see the Income Pyramid overleaf — and this is the level of poverty as quoted by Mahathir for 1970!

    No one is denying that there has been significant growth in the national economy. Per capita income (Per capita income = total income of the nation for that year divided by the population) has soared from RM1,132 in 1970 to RM13,683 presently! (Incidently, this would work out to an average household income of RM5,534 per month.) However as the income distribution pyramid depicts, the distribution of income in Malaysia is skewed towards the rich, and there is still significant poverty in Malaysia.

    Perhaps the most incredulous aspect of Malaysia’s poverty statistics is that it hasn’t been challenged by the mainstream media nor by the academicians. Big Brother’s doublespeak (term used by Orwell in his book 1984) apparently rules supreme in Malaysia today!

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