According to Datuk Aishah Ahmad, the Vehicle End of Life policy is important to ensure the growth of the automotive industry, which in turn, can contribute to taxes paid to the government. The Malaysian Automotive Association (MAA) president told Utusan that the automotive sector can provide an estimated RM6 billion a year in taxes to the government, and should not be dismissed lightly.
“The Vehicle End of Life policy is important to encourage the purchase of new cars, increasing the demand in the industry. At the same time, banks should also make vehicle loans easier to obtain to ensure the success of the industry,” said Aishah. Last year, Malaysia Automotive Institute (MAI) CEO, Mohamad Madani Sahari said that suggestions to implement such a policy through a Cash for Clunkers scrappage scheme was being considered.
The scheme would allow owners of vehicles aged 10 years or more to obtain a rebate of up to RM5,000 when they trade in their vehicles (regardless of brand) for a new one from any local OEM producer. However, the plan has been in left in a state of limbo since then, with Minister of International Trade and Industry Datuk Seri Mustapa Mohamed saying “the public is not ready” for such a scheme or policy, although he did not elaborate at the time.
Aishah’s statement comes following the MAA’s negative forecast on the local automotive industry, where it projected a 2.5% drop in vehicle sales for 2016, amounting to 650,000 vehicles. This is in spite of record 2015 numbers, where 666,674 vehicles were shifted. The depreciating ringgit and tighter lending policies of banks were cited as factors that will disrupt the industry’s Total Industry Volume (TIV).
At the MAI’s 2014/15 review and insight on the local automotive landscape, it suggested that a Cash for Clunkers scheme could increase TIV to 750,000 units. Aside from the Vehicle End of Life policy, Aishah also suggested introducing new incentives to encourage the growth of the Energy Efficient Vehicles (EEV) in the country.
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Agree as long as they make the car affordable for a 5 years loan tenure. Not the bank loan facility, but the car prices themselves
Hahaha MAI really funny…Please send this msg to Datuk CEO “you dare to scarp kampung poeple’s cars?? and BN will lose majority vote from Rakyat kampung?” Another new year “BULLSHIT” statement from MAI !!!
The question we must be asking is, where is Najib’s promise? Why Aishah not asking her boss this?
Where is Najib’s promise? Najib promised 30 million people 2 years ago before the election that he would reduce car prices by 30 percent. Kenapa Aishah tak tanya Najib?
He said the 30 million people need not worry because BN always kept their word and never mungkir janji. He said if people voted for BN, he was 100% sure to reduce car prices by 30 percent.
Najib, in his speech told people that BN knew how much people suffered paying for their cars and he felt very sorry for the people, thus, he was sure to reduce car prices by 30%.
It is a well know fact, that we Malaysians are paying 3x the global prices of cars. And double whammy, not only we pay 3x the global prices of cars, our cars are stripped down so bad, it hardly lacks any safety features. Even our top D segment cars each have about 20 less safety features than the same car costing 3 times less overseas. For example, a 10 airbag Toyota Camry CBU in the US cost US$22,000. In Malaysia, this cost RM180k. And loads of safety spec taken out. For example Tyre Pressure Monitoring System and many others. Camry Hybrid in the US is US26,000. Come to Malaysia, should be tax free. CKD it using Malaysian parts should be even cheaper. But here sell RM175k
Now, what happened Najib? Where is your promise?
MAA, why come out with all this bullshit but so scared to ask Najib to honour his promise? Waiting for Tan Sri ship kah Datuk?
You missed-out those Persona SV or Saga SV (Sacrificed Value), they presented those % reduction figure from these SV car
Scrap the import tax, excise duty then only we talk about end-of-life policy. I am more than happy to change car every 5 cars, with the price the 86 is sold at RM66k at Japan. I won’t mind paying RM76k for it!!
What has MAA got to do with Najib? They not affiliated with the govt. I think you should check the background before lambasting like a typical idiot.
I think MAA is doing more than MAI who simply rip off others effort and claim as their own.
MAA is doing more for the industry but not good enough. MAI/MITI is just worthless, with those idiots in charge (MAI/MITI), our industry will never be able to compete and always fall behind Thailand and Indonesia.
the PM has everything to do with everything in this country both good and bad.
agree , banks play an important part in this , if they can make the maximum loan period to 5 years rather than a 9 , it will help this thing to be implemented…
Hello Najib, besides car prices, why our petrol prices so high at RM1.75? According to global prices, our oil prices should be about 90 sen per litre. Already 30 years we kena screw with super high car prices, now, you want to increase even more?
We are giving the Government free money. Each time I fill up 50 litres for my tank, I am giving RM50 free money to the Government.
Calculate that with about 10 million road users, Government makes RM Billions Per Day untung. Plus from GST collection alone last year, that was over RM100 billion. The tax you collect from our cars alone amount to RM10 billion per annum…..still want to hantam somemore?
You hantam Malaysians with petrol prices, car prices also you hantam Malaysians. Our car prices are 3X the car prices globally. Tiga kali ganda. And yet, our GDP per Capita is one of the lowest in the world. Singapore petrol prices are so much cheaper (despite Singapore not producing oil) to Singaporeans cause Singapore GDP Per Capita is 5X that of Malaysia.
Why are we paying so much for petrol when we ourselves are an oil producer.
You ask us to tighten our belts and eat kangkung and your RM1 chicken but you spend RM500 million on a brand new jet despite having 4 other jets in your hangar.
How lah Najib? Now bodoh MAA said must the RM6 billion good for Government. But if 1 person can curi RM2.6 bil, that RM6 bil has no meaning!
u want free gas, pump urself
No way they are going to reduce the 9 year loan, almost all buyers take 7 or 9 year loans. Only the very rich take 5 years or less.
End of life will not work here because there are still much demand for old cars from kampung folks.
Agreed on the pricing of cars. The government should reduce the excise duty rate for all cars from the current 100-300% which was the major reason of overpriced cars in this country. Import and GST should be the only tax imposed on car prices.
cannot simply scrap, since many kampung folks not able to purchase a 40k priced car, new or used.
perhaps anything more than 30 years can be scrapped (unless had its status as vintage approved). but for cities like KL/penang/ipoh and jb… introduce age cap. something like 10 years. anything more than that will have to go elsewhere be it towns like Kuantan or Kuala Pilah. or Mersing or Kulim.
for the cities it is necessary to create a border to understand which area is covered and which is not allowed.
dun talk nonsense. ipoh is not city.
Why does all Malaysian datuk and tan sri always comes up with the idea on how to screw the malaysia public to benefit the government. Instead of scrapping old cars, how about scrapping all luxury car after 2 years so that the government can earn more tax? Afterall most luxury car are company paid cars. Screw the rich for once and not the poor.
Your sales drop a lil bit, and now u kipas the govt to amend End Life Policy. With super crazy high car price in the universe, u want people buy new car everytime when his/her 9 years hire-purchase loan going to end.
how about lorries and heavy vehicle end of life policy?? no need aa??
Best question of the entire MAA shits!
Not only lorries and heavy vehicle, EOL policy for their tires as well.
Agree..agree..big lorries carries kayu balak until now still got small timber door only. Tighting all the logs using chains.. dont forget our buses. Should scrap even faster..
no way Malaysian can accept this as long as the duty tax is still 50% – 100%.
this kind of cock talking makes me wonder should I support the automotive industry and pay more blood sucking tax.
Local OEM producer? Portong & P2? if so then is not “automotive” industry, is just Potong Industry…
car expensive
service lousy
Do this and wait for kampung people to flip table.
Kalau harga kereta berpatutan boleh la buat kak.. Masalahnya harga kereta tak berpatutan, takkan orang nak hutang sampai masuk kubur. Kalau dapat derma billion2 lain cerita.
Thing is, transportation is a need to us malaysian (anywhere for that matter), and one third of our salary goes to that(even when we bought the tin kosong axia). those with 3k salary can afford it,but how about those below 3k? even 3k salary in considered ‘miskin’ u know. please find another way to improve the economy. reduce imports increase exports or whatever, you’re the expert here.
now you’re saying vehicles(cars) would contribute up to 6bMYR. Soon when TIV drops due to people couldn’t afford 5yr tenure, you aim at motorcycles pulak. then bicycle.
Even to buy motorcycles pun people have to hire purchase, very few can afford to buy cash you know. which is why second hand market is rather booming.
Not everyone is rich. My dad in kampung rarely drive. He owns an old mercedez and a Myvi that looks like new. Still working well. Why he need to be force to buy new cars? Please, this end of life policy is too selfish. Please find other source of tax. To start with, our car is expensive. Let us drive it longher or die with it. Please dont take it from us.
wait, what do u mean “Malaysian” automotive industry?
It doesn’t belongs to “Malaysian” at all. It should be called “Cronies Automotive Industry”
Selfish MAA thinking of car sales only
How many ppl can afford to changes car often
Maybe they should introduce a good leasing model here like in the US
leasing has been here for some time already but unfortunately, only for registered companies.
i like the idea of leasing, where i dont have to come up with a downpayment and need not worry about resale value. i pay a little bit more though as per monthly payment but that is still acceptable.
leasing probably managed by cronies anyway
Stupid statement on CNY day. Even you bring down the car prices some people out there still can’t afford to change car every 5 years no matter how cheap is the car is. People will go for property just to make sure they have a roof under their head after paying off their car. Why burden people?
Instead of encouraging people to buy more cars, government should be looking at providing safer cars for the people and improve the public transport. The current infrastructure could not accommodate more cars on the roads. Look at all the major cities like KL, JB, Penang.
No problem if our car are same price as US, here we pay 3 times the price yet we suppose to scrap it off in few years ? this would mean car would have scrap value when closer to scrap time.
How about those retire people with very low or no income ?
Don’t forget to mention that while we are paying 3x the price, we are also earning a fraction of their income. So the real difference is much greater than 3x.
Just stop buying car all together!
Those 20 years old Proton Saga is more reliable than 2016 VW Jetta anytime.
good! there will be fewer cars on the road.
In a parallel universe,
Property Industry are damper and Malaysia having affordable housing problem.
Example Proposed solution:
Landed properties older than 30 years, will be auto scrapped/demolished to make new high-rise condos.
This will help the “Malaysian Property” industry, increase safety of properties, and contribute new taxes.
Properties (landed and high-rise) older than 5 years, will be subjected to annual Interior Decoration Inspections. If found to be ugly or dirty, will be scrapped and redeveloped (with owner getting a generous RM20K discount given for next property purchase from a local “authorized” property vendor).
Everybody wins, except the poor rakyat.
Pls scrap yurself
just plan to be loan free after finish my 9 years proton loan, then i have to face another 9 years of shit just to support your longevity?
Typical tonkat mentality like rakyat owe them a living. Instead of thinking how to improve sales or offer affordable cars. Forcing rakyat to scrap cars and buy form them. So they can continue their comfortable life….
Saya setuju, asalkan majoriti kereta di malaysia adalah mampu milik. mulakan dengan kereta segmen-c tahap-ukur berharga dari RM 90k dan ke bawah, kenderaan CKD tidak terkecuali. Kalau mahal seperti sekarang, maaflah, lebih baik kita semua keluar dari malaysia sekiranya MAA mahu kuatkuasakan polisi ini.
Kebergantungan rakyat terhadap kenderaan persendirian amat tinggi berikutan kemudahan kenderaan awam amatlah terhad.
In order to reduce jam, public transport will need to be improved as the very first step.
Next should reduce loan margin and maximum of 5 years hire purchase tenure.
Then you may impose vehicle end of life policy. It will affect all cars RV greatly including the Vios and Hilux. But this should be the way to improve public transport and people can avoid buying vehicle and traffic jam can be reduced.
Fine, then make cars affordable. 3 to 5 year loans. Its crazy that even an “affordable” proton takes some people 7 to 9 years to pay off.
I came from kampung. With majority of us are underwage fishermens, farmers and the rest are doing wide range of rough jobs, we don’t have a steady income, we just try to go on with life. An old car is a necessity for those who are able to buy one at cheap prices even though it looks like a junk rusty metal to the urbans. It takes us 5 to 7 years for us to have some to buy those junks. Life is difficult nowadays. Yes..we are not ready here.
Automotive growth?! Another brainless & selfish statement at this difficult time. Peaple….. still remember ĢST will reduce car price?
because of automotive sales is projected to go down 2.5%, they have headache already and wanted to employ “scrap car after 10 years” policy. what??
1. how can they easily came out such proposal, (even it was proposed before) just because of the data forecast can be bad to automotive industry (2.5% drop?? really??)
2. Even the taxes still unsolvable, 2 to 3 times higher than actual prices for imported car, so we pay higher prices for the car, and the car must be scrap after 10 years, okay i get the point
3. even a person who got a stable job (makan gaji) cannot survive, salary just enough to pay car loan wedding loan ptptn loan parent and family care and house loan, not to mention other unseen loading, then they have to scrap the car which mean all they effort to pay the car must be scrap? usually can be sold as used car, at least have return or not selling the car and just used it. And the percentage of malaysian that fall in that category, i dont know, 50%? have they study that? and that not include the fraction of the income, <3k, <2k, 10years old car, and how many percentage malaysian fall in that category?
theres a lot more factors they must look deeply and study, and consider before such drastic measure is proposed, i mean how they can easily proposed such idea, just because they afraid of falling sales by 2.5% ?
ya Allah selamatkanlah kami
-concern citizen-
please ensure all the affordable car price can be settled by 2-3 years malaysian average income then u can talk about vehicle end life policy
So what if your dad pay the car loan for 9 years (which was sold at inflated price), then he becomes a pensioner, with the only car that he has, and then, the MAA guys say nope, you can’t keep your car, we need your money to stimulate our growth and pocket.. You know what MAA, pegi mati..
This is ridiculous!! How can they force people to spend more just for the sake of “ensuring the growth of the industry”!
It’s like creating a law to force people to pay so that the car companies can get richer!
If people want a new car, they’ll buy a new car – these fat cats shouldn’t be forcing people to spend on a depreciating asset!
but my old car is better than proton..
Not necessarily a Proton, nowadays most older Toyota is far more better than most brand new Toyota which become ‘taik’ already, somemore with super high inflated price.
For example, a 10 – 13 years old 1st gen Vios easily far more better built than brand new 2016 Vioshit with lots of problems. Also, a 10 – 12 years old Altis 1.8G with VSC were lot more safer than brand new 2016 Altaik 1.8G without VSC.
this MAA head need to be changed for years but WHY is she still there???
Why MAA propose Vehicle-EOL to generate Gov income instead proposing mandatory ABS, Airbag & ESC for all new Cars to improve road safety?
Don’t follow IGP naik saman proposal to reduce traffic fatalities comment, improve new car safety first then car fatalities will drop…
Agree..agree..Everyone now thinking about screwing rakyat only..haiya
can only afford an exora for my family.. only 3 year.. 6 more to go… aiming to finish this off and I don’t want to buy another one, can’t afford too maa.. FO MAA.. you become rich, we all become slaves ka?
People scrap their cars, only to find out that they don’t have money to purchase a new one. No one buy cars (except a handful of rich people). People travel through other means of transportation. Demand for cars drop. Local car industry dies…
I believe this government and its ministers need an End-of-Life policy.
We should have End of Life policy on the Government itself.
Really irresponsible statement. All these minister under current government is brainless. These are the the people that govern Malaysia at this very moment. The bright one either go to jail or ousted. So you all can judge what Malaysia will be in years to come. Majulah Malaysia.!
They are not brainless i think..but rather use their brain thinking how to collect money from rakyat instead of thinking how to ease our living cost burden.
Really irresponsible statement. All these minister under current government is brainless. These are the people that govern Malaysia at this very moment. The bright one either go to jail or ousted. So you all can judge what Malaysia will be in years to come. Majulah Malaysia.!
You are wrong..the brightest of all still there.. ahmad maslan still working fine what..