Bank Negara Malaysia’s new guideline on responsible financing, which tightened the criteria for auto financing, has impacted the automotive industry, especially budget car players. Proton Edar Dealers Association Malaysia (PEDA) has been among the most vocal opponents, claiming that only 30% of loan applications were approved in January.
Industry players met BNM last week and Perodua MD Datuk Aminar Rashid Salleh said the meeting was beneficial as it addressed serious issues.
“We are committed to support the government’s initiatives, in particular to address the rising household debt, but we would also appreciate it if the government and its regulatory bodies would consult the players to better understand the impact to the industry prior to the implementation of any new initiatives or measures,” he said.
Aminar added that partly due to the implementation of BNM’s financing guideline, the inventory of vehicles has risen and if left unchecked may need a downward revision to production planning. He added that the automotive ecosystem has also been hit as approval time for loans has lengthened, affecting sales of dealers.
He urged that the new guidelines be implemented in stages to allow a soft landing for both the players and consumers. Aminar said financing institutions should also take into consideration of the government’s desire to see growth in the industry by increasing competitiveness as well as a better business environment for all, in line with its comments on the soon-to-be announced revised National Automotive Policy.
Click here and here for PEDA’s views on the matter. To air your views, hit the comments section.
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AI-generated Summary ✨
Comments express concern that Bank Negara’s new responsible financing guidelines have negatively impacted the automotive industry, particularly affordable car makers like Perodua and Proton, due to stricter loan approvals reducing sales. Many feel that car prices are inflated by high taxes, making affordability difficult for the average Malaysian, especially fresh graduates earning below RM2000. Several comments criticize government policies, excessive tariffs, and taxes that keep car and property prices high, which contribute to widespread debt and reduce the quality of life. Others argue that the saturated domestic market limits growth and suggest reducing taxes, promoting exports, or offering better financing terms to improve affordability. Overall, there is strong support for measures to lower car prices and address the high cost of living, coupled with frustrations over political and economic policies perceived to favor cronies and inflate prices.