The implementation of the Goods and Services Tax (GST) in 2015 is set to encourage demand for vehicles following the termination of Sales and Service Tax (SST) that would lead to price drops, according to a Bernama report.
“(Translated) It will stimulate demand for cars and we are not expecting a huge impact on prices after the implementation of GST,” Malaysia Automotive Institute (MAI) CEO Madani Sahari told reporters at the MAI-Lafarge Automotive and Logistic Safety Exhibition 2014 on Saturday.
When asked if vehicle sales have dropped due to customers adopting a wait-and-see attitude towards GST, he claimed that the industry was actually still showing positive growth.
“The Total Industry Volume (TIV) is higher this year than the last, backed by aggressive sales campaigns from industry players,” Madani said. “The 2014 TIV projection of 670,000 units has now been changed to 680,000 units. Through the launch of new cars this month and in the coming months, we are confident that the TIV will beat projections.”
MAI reported that Total Industry Volume (TIV) for the period between January and July this year was 11,490 units, 3% higher compared to the same period in 2013.
Meanwhile, Lafarge Malaysia CEO Bradley Mulroney said that his company was preparing a variety of initiatives to educate drivers and cargo handlers on road safety.
“This exhibition will create awareness about the importance of health and safety in logistic companies and transport services operators,” he added. “We also work closely with our transport operators to ensure their vehicles are in good condition and are equipped with the necessary safety equipment.”
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Really hope this is true.
Don’t put your hopes too high. Coz there will not be any significant price drops. History has shown whenever there is talk of tax decrease, buyers would always end up disappointed. Coz it just ain’t gonna happen under the present regime.
Madani Sahari is a shameless man. He is used by the government to confuse the people with heavy duty analysis and charts. He has no dignity. Malaysians not interested in the TIV and all that. We want the below 3 issues looked into.
Madani Sahari, where is the clean diesel for the whole nation? Important things like this you don’t address.
2nd issue. Your boss, whom you kipas, promised before the last election, that all car prices would be reduced by 30%. Why isn’t MAI pushing for this? Ask your boss to honour his promise. He promised the nation that he will match PKR’s offer to reduce car prices. What happened?
Thirdly, why no action on the AP boys who are minting billions at the expense of the 30 million Malaysians suffering with high car prices?
There above 3 issues including clean diesel, Madani got no telur to tackle. The MAI guys are paid very high pay to confuse the rakyat with all sorts of analysis and charts but there 3 issues, the don’t bother.
Our hard earned money is spent to support the fools at MAI. But no result. The last big paper/NAP they were to scared to touch on the AP Kings. Kenapa takut? The AP Kings are the main cause car prices in Malaysia is so expensive and collapse of our potential trillion dollar car industry.
Please Madanai and MAI, have some guts to serve the people of Malaysia and not just your own pockets.
All this drama/bull by MAI is for the rakyat. We know, nothing will happen. MAI love to do this. Come out with analysis and charts, but nothing will be done. Remember MAI is the Government and the Government is MAI. So, it is a drama for the rakyat.
It is solely because of Mahathir and his AP kawan kawan, as well as inaction by Bogus MAI that for 30 years, 30 million people in Malaysia suffer. Everybody’s biggest payment per month is their cars as we are paying overpriced cars.
You see, in the 80s or even in the early 90s, you can get a brand new Nissan 130Y or a Toyota Corolla for RM20,000. Now, the same car is RM139,000.
In truth, the past 30 years, car prices have come down a lot globally and have NOT gone up due to inflation. It has come down due to economies of scale achieved by car companies. This is proven by the fact that you can get a brand new purely Japan made top spec Toyota Camry 2.5 with 9 airbags in the US for US$22,000. That is about RM60,000. The normal B segment car like the Almera is sold in the US for US$9,999. (RM30,000). Mind you, this is after Toyota and Nissan of the US has made their margin and profits and the US government has collected taxes and duties from Nissan and Toyota. The direct from factory prices is far cheaper. UMW will get the above 2.5 Camry for US$15,000 from their principal in Japan. As our Camry is CKD, the price is even lower than that.
So, in actual fact, most Malaysians can enjoy cheap and reasonable cars but because of the AP failure, all the other car prices have been raised up tremendously to protect Proton, Mahathir’s AP cronies and the fat cats at Bogus MAI. Malaysians have already suffered so much. For 30 years, 30 million people suffer so much. We struggle paying for our high car prices all because of one man’s dream of benefiting his friends and relatives through the AP system. and the inaction by Bogus MAI
The AP system as well as inaction by bogus MAI, it has also cost us hundreds of billions in ringgit in investments from car companies who moved to Thailand and Indonesia. Car companies got fed up with Malaysia’s MITI for protecting Proton and telling other companies what to price their cars. They got sick and tired of the AP system and how genuine brands cannot get enough APs to import their cars in (like Mercedes, BMW and Honda).
They thought that if they set up their brands and plants in Malaysia, they knew they had to share the pool of APs with the cronies and they knew 90% of all APs go to the cronies. They all moved their operations to Thailand making it the AutoCity of the world.
Recently GM announced that they rolled out already 1 million cars from Thailand. Imagine if GM was in Malaysia and we taxed GM RM10,000 per car. Calculate that with 1 million cars. Just from GM alone, we lost Billions in USD. Imagine what will the amount be from other car companies if they had set up in Malaysia?
Because of Mahathir and his AP system as well as inaction by Bogus MAI, we lost hundreds of billion of ringgit in investment and trillions of ringgit from jobs lost. If Malaysia was the autocity of Asia, hundreds of thousands of jobs would have been created for Malaysians. We lost all that. Trillions of Ringgit and hundreds of thousands of jobs. Now, Thailand is benefiting from this trillions lost.
So, in summary, the 30 PEKEMA members have solely caused Malaysia to lose trillions in investments. What have they done? Nothing.
The AP companies also don’t employ many people.
Yes you read it clearly. Only about 10 people working. That includes the 4 Bangladeshi guys whose job is to wash the cars.
Go around KL and Jalan Genting Klang and see, all the AP cronies have hardly 10 people working for them each (including non bumi boss, non bumi salesman and secretary).
Remember one thing, other than Naza, each AP company have hardly 10 people working. So, if you do the maths, about 30 AP companies x 10 people = 300 people. Majority of which (98%) are non bumi. Defeats the whole purpose of the AP system to help the Bumiputera to venture into the car business.
Madani is protecting 300 people vs 30 million Malaysians suffer?
No need to wait end of this year. Look at this as a crime. Abolish it today itself. Abolish the AP system now Madani. It is causing too much hardships on the 30 million Malaysians!
No wonder my business get better and better, no time to comment here, and let the fake Same L0rrr kick in and bullshit on kampung people.
Real Same L0rrr never discriminate ppl, just junk and low RV car.
It’s gonna be the knowledge and education. Everybody should know how a car price is ended so expensive in Malaysia. Same for the neighbouring countries (Thailand, Indo, etc), . Once we may the majority of educated people, including kampung ppl, we’ll definitely pay for the real price. Again it’s educated ppl and knowledge that CHANGE the free money into the pocket policy (open AP).
Madani Sahari should firstly honour his boss, PM Najib’s promise. Madani loves to come out with all sorts of announcements every month but all got no substance.
Madani, ask Najib to honour his promise. Before the election, he promised the 30 million people in Malaysia that he would reduce car prices by 30%. He made this as his election promise. He assured the voters that BN could be trusted and BN always kept their word and we should not worry about anything because he was 100% going to reduce car prices by up to 30%
This was more than a year ago. Nothing has happened. Car prices have gone up instead.
So Madani, instead of carry balls and waiting for your datukship, please see to it that the 30% promise is honoured. After all, it is your own people that is suffering the most with high car prices and heavy monthly car loans.
If Madani cannot do this, better he resigns because car prices are the most important element in the 30 million rakyat Malaysia’s life.
Please MAI, please stop lying to us Malaysians. In the US, a good Toyota Corolla Altis, after the discounts, is US$12,000. That comes with 8 airbags. My cousin just bought one.
So for RM36,000, we can get a good C segment CBU car.
But the same car here is RM139k. Malaysians are overpaying by RM100,000.
If there is any reduction, car prices should fall by at least 50%, after all, ours is CKD and it should be cheaper
Once we have majority of educated people and knowledge, it’ll change. Kampung people also need to have the knowledge on how a Jap C segment is ended with RM100k ++, what’s the actual cost and what caused it. I’m sure even Thai/Indo are building the knowledge too, it’ll change and we’ll pay for global/US price one day.
MAI: GST = Car price drop. Bravo.
Check back when Sg implement GST, it doesn’t tell the same story.
But if car price really drop, it is a good thing. At least while everything goes up, car price fell. So this balance everything. You lifestyle become more expensive, your pocket money shrink, and you can get a 9 year loan to get a cheaper little car.
GST in, all things goes up but automotive. Aside from car, does motorcycle, boat, air craft also drop in price? Cause there are minority people who are filthy rich is waiting whether to purchase their aircraft or wait for GST to come in.
All over the world, once VAT or GSt comes in, everything goes up. I was living in the UK before VAT came into effect. Once VAT came into effect, everything went up.
Don’t know what lies our government, especially Madanai is telling everyone in Malaysia. Don’t lie to the people Madani. Common sense will tell you, everything goes up in price.
Enough of all the government bull about how things will go down in price.
Standand of Safety equipped?? This guy is just joking.
He love to joke around and making people laugh.
“Important of health and safety”
Why EEV 100% taxes?? Joker of Gov officer.
Bashing BN in 3…2…1.. Start!!!
“The implementation of the Goods and Services Tax (GST) in 2015 is set to encourage demand for vehicles following the termination of Sales and Service Tax (SST) that would lead to price drops, according to a Bernama report.”
Gov says implementation of GST will increase revenue, which means GST tax will be higher then existing SST tax, simple mathematics.
Then the big question is, how can car prices drop with higher tax…?????.
increase gov revenue means those tax invaders or those who cheat their tax can’t run anymore. Gov will get them. and those who sell their products with excessive profit will be known too. and increase gov revenue also means some items which are not taxable before will become taxable. for cars, 10% SST will be lowered to 6% GST.
Mofaz said it right.
Decrease excise Duty and you will see some drop.
Biggest joke I ever heard “GST set to encourage demand for vehicles”
Come on, you know that won’t happen.
‘Robbing Hood’ will not be pleased; stealing from the rich in the past but now taxing the ‘have less’ to give to give to the rich. A case of priorities, however one looks at. Last time I heard, cars were for the rich but now it has become an essential – in view of less than satisfactory public transport.
As I’ve said earlier, IT JUST AINT GONNA HAPPEN!
Continue to dream on if you wish.
‘Giget’ ‘victor tan’ both of u are bodoh , go and study what is GST and sales tax before comment .
After so many years of putting expectations on car related, the only happy thing to me is the reduction of RM20 road tax on my old 2L Ford. The rest are all disappointments. From fuel price to NAP, hybrid tax exemption etc etc…
The man already said that the price will not drop a lot so expect very little savings depending on how much is the car you are buying BUT who is to say that other stuff will not increase in price?
Sure the car price might drop a little but they can adjust the price on other parts or services with the justification of ‘cost going up so price also go up’. In the end its the same for any product or service. Just take a look at our coffee shop food price in the last 5 years.
stop dreaming la rakyat
Madani Sir. I think you should change your profession to politician, and apply for the post of Selangor MB …..
Can’t believe what i hear from MAI. That shows how incapable such ppl manning the department and gov.
And the lack of understanding or even education in taxes. GST will tax u either directly or indirectly. The end results will be approximately 10% increase in price. Like it or not. For those who think I’m talking cock, mark my word.
Btw, i had live thru the times when SG implement GST at 3%. Our gov is looking at 6%.. It will hurts everyone including the poor and very poor.
I am confused…. with the implementation of GST to replace SST, is car price itself coming down or going up?
For other goods and services, its clear that with GST, it is all gonna go upwards and gets more expensive.
You said it yourself that all prices are going high and Why do you think Car price is an exemption from that ?? lol
just brace yourself and pay higher !!
The implementation of the Goods and Services Tax (GST) in 2015 is set to encourage demand for vehicles following the termination of Sales and Service Tax (SST) that would lead to price drops, according to a Bernama report.
“It will stimulate demand for cars and we are not expecting a huge impact on prices after the implementation of GST,” Malaysia Automotive Institute (MAI) CEO Madani Sahari told reporters
You already see 2 contradiction in the opening 2 paragraph, by Bernama and by Madey-ney! Bernama says there might be a possible price drop after GST and Madey-ney says dream on suckers !!!
Will the 6% GST be based on the final selling price or ???
People don’t get your hopes too high, it is very naive to think that prices will drop~ with GST, prices of everything will be going up. You all think 10% change to 6% u get 4% discount? supply chain for every part of the car will be going up and final price will be higher~ Of coz car sales now good, wait GST, HAILAT Lorrrr~