According to the New Straits Times, Malaysia will dissolve the cap on imported US vehicles once the Trans-Pacific Partnership (TPP) agreement swings into motion. The move was disclosed in a side letter between the two nations on the automotive sector as part of the recently-released 600-page TPP document.
Also, Malaysia will “not impose new or additional charges on the imports of vehicles from the US,” the English-language newspaper reports, in reference to the side letter issued by the Malaysian Ministry of International Trade and Industry (MITI) to the US Trade Representative (USTR).
Beginning January 1 2021, Malaysia will “not provide excise tax credits on motor vehicles based on export performance and use of local content or local value added.” In addition, Malaysia has also agreed to be transparent in disclosing the details regarding any new excise duty structure that is introduced.
“Malaysia shall publish, and provide opportunities for any person or party to review any draft of any proposed regulation, standard or conformity assessment procedure related to excise duties for motor vehicles as soon as it is available,” it was noted in the aforementioned letter.
Separately, International Trade and Industry minister, Datuk Mustapa Mohamed, had earlier mentioned that car prices have dropped by 17.9% since 2013, in line with his party’s manifesto issued during the 13th General Election. “In 12 years’ time, the import duties of US vehicles, currently at 30%, will be gradually reduced to zero percent,” he commented on the Trans-Pacific Partnership (TPP) agreement.
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But then, what cars are being imported from the US in the first place?
Not a single Ford model on sale in Malaysia is built in the US – bar the upcoming Mustang. Not a single Chevy we get is built in the US as well.
The only US built cars that used to come in were the BMW X3, X4, X5 xDrive30d/35i, X6 xDrive35i and the X6 M, which now too, has been trimmed to the X4 and X6 M. And we all know they barely sell enough of these two models to even justify a cost decrease.
So, it’s pretty much business as usual folks.
No one buy car made from US. Same as you won’t buy phone made from Russia. After all, you wont’ go wrong with sushi cars.
Lol just face your faith, although i dont see this policy being imposed because we all know Malaysian governments all too well.
When a ford fiesta ecoboost cost half as much as your POS Toyota vios, Toyota is gonna be in deep shee.
you forget to add the E85 (2002-2008) Z4.
On point, sudonano.
MITI is just trying to make this look bigger than it really is. Any Malaysian who knows how our auto industry works will realize that this ‘big deal’ is meaningless.
Even if we want to import ‘cheap’ and ‘suitable for Malaysia’ American cars, like the Chrysler 200 and Dodge Dart for example, any savings on import tax will be offset by AP limitations and high roadtax. Then there’s the excise tax, which is the real, silent killer.
And even if we wanted to import American-made Japanese or Korean cars, that will probably not work out either, because it’ll be up to the top management in Japan/ Korea, and they would want to preserve their Malaysian assembly plants and other investments too. Even if it does work out, it would not be an overnight thing. And lets not forget, America is a left-hand drive country, why should they care to make right-hand drive cars just for third world countries like ours ? Their labour costs are high and although their automotive industry has higher economies of scale than ours, it is based on a U.S.-centric network. In other words, America does not export a large amount of ‘people’s cars’ across the globe, but countries like Thailand and China do.
Tl dr; unless if you’re saving up for a Mustang or Corvette… this isn’t worth raising your hopes for.
Jeeps are built in US, you may see the Jeep Cherokee at the price of the kimchi Santa clause.
But again it is a small-to-no market here, sushi cars are still the best.
So will Sime Darby drop their price to reasonable levels? The Mustang price is ridiculous as it is now or they will find some other excuse, APlah, exchange ratelah, etc.
How many cars are imported from the us anyway? US is left hand drive. It’s not like we can import everyday cars like civic, camry, accord from there. Only those wishing to buy the Mustang will benefit!
Ford US has already exported right hand drive version of mustangs to europe, therefore those ponies probably gonna end up on our shore, thru ford malaysia or recond unit from europe. Then the engine choice of 3.5 v6 (base model), the 5.0 v8, and the most probable engine we malaysian gonna have, the 2.3 ecoboost mill.
Agreed, you read my mind. I still think the APs are the biggest problem here. At the end of the day, whoever can secure the most APs will always win… that’s why it must end.
Does that mean ford mustang or tesla will be cheaper here in the future?
“…the import duties from US will be reduced from 30% to zero..”
Why they didn’t tell you is that our currency against US already worse off by 30%….
30% Import duties of US vehicles abolished = 30% Excise duties of US vehicles added
-30 + 30 = 0
Conclusion = US vehicles will remain expensive, forever beyond that 12 years.
But the story says excise also no more?
rules are meant to be broken or twisted. No more excise duty, they can come out with other tax like patriot tax, 1mp1 tax.
Dun forget excise duty was introduced because of ASEAN CEPT.
1MDB tax coming soon.
Guess Chevrolet is the only one which would benefit.. Any other brands ?
Our Chevrolet come from Korea
2021 … 6 more years still long long don’t know what will happen.
Different gov in 2.5 years = diff. policy
The Ford, Chevy will perform better? LOL..nope..
So…..meaning that we can get a brand new car from US at a much more cheaper price?
and at a later date, slowly but surely, they n wil remove all taxes on them, american cars will b dirt cheap, flood the market, and thats how TPP works basically, only american products will win at the end… It will most probably kill most of our local industries, not only cars, jus everything u can imagine…
Be more competitive and use some brain then…don’t just forever rely on tongkat and aim for being jaguh kampung!
How many right-hand drive cars are assembled/exported from there…
So in 2021 I can buy Ford Focus RS at RM 140k?
You damn smart bro. They said cars imported from US not with badges originating from there.
Because nobody wants to buy them anyway even if the Cap is abolished.
Heard all these rubbish claims from our government since the dawn of time and no actual proof to show for it. Mustapa Mohamed magically plucks these figures from the air. He is telling me that 2 years ago a 100k car is now 17.9k cheaper. Mind you…and that is industrial average too!!
motor vehicle import tax & excise duties forever remain key revenue generator to fed govt. unless crude oil prices shoot up to USD100/barrel, one can just forget about cheaper car prices.
in this land, news is just a piece of information.
tell me only when is on paper that we can get cheaper price.
what car drop by 17.9%? regardless of what was put in or removed… the price range is still the same and is going up due to weak Ringgit.
Hope it means we get Acura and Tesla (which normal people can buy and own) here, finally.
even in US Tesla is a luxury car…. more expensive than Camaro and Mustang…
true dat. the Camaro starts from $25k. A fully loaded one (with the top-of-the-range 2SS trim & V8 engine) costs you over $50k. The most expensive Camaro, the Z/28 costs $78k. The P85D Model S has a six-figure price tag.
Tesla come to Papa!
Is this means.. We gonna get Chrysler or Dodge? I would not mind owning a Chrysler 200.. hehehe
you can get a recon RHD UK-spec Chrysler 300C from RM280k.
Datuk Mustapa Mohamed, had earlier mentioned that car prices have dropped by 17.9% since 2013. So a RM150k car price had been reduced by 17.9%, that is RM123k or thereabout.
Can the Minister tell me which car or cars have prices cut by that percentage? Just list them will do, or you are just bullshitting for the party, not the government. In other countries, governments work for the people, but the reverse in Malaysia. Hambug!!!
i can tell u a mazda is reduced by nearly 20%. and dont forget about a certain mercedes down by 30%. so what he said was factually correct.
the reason i am telling u is we need to change the way we argue matters. for example if go for cheaper cars these snakes can tell to our fcuk face that cars already become cheaper. but is it cheaper car that we actually want?
the answer is AFFORDABLE car. the mercedes was slashed by 30% through tax rebates and some policies but can we really buy the s-class? the answer is no. so now change the way we argue matter on this cheap cars
affordable cars.
so many bodohs here. excise duties as high as 105% is the main killer. what is 30% import duty to gov.
As usual. talkkok only. By then, our ringgit exchange rate will be at RM15 to USD 1.00 with the DUMNO govt.
the excise duty will be removed they say, OTR price will remains they never say.
Tesla Model X please. LOL