Apparently, the Trans-Pacific Partnership Agreement (TPPA) doesn’t just have the potential to reduce Malaysian car prices, but could also benefit automotive parts and components manufacturers, if a report by The Sun is to be believed.
Malaysian Automotive Institute (MAI) CEO Datuk Madani Sahari told reporters yesterday that a total of RM10 billion worth of parts and components are exported out of Malaysia every year – a performance that, he said, could be bettered through the implementation of the agreement.
“It has been an increasing trend as it only used to be RM5 billion before. We just have to do more and believe in ourselves…why can’t we double that export value in five years?” Madani said.
He added that Malaysia’s automotive players could tap into the markets of other TPPA-bound countries, under the agreement’s provisions concerning the rules of origin. “For vehicles that exported within TPPA countries, they must meet the rules of origin of 55%, meaning the parts and components must be coming from TPPA countries.
“Malaysian suppliers not only have the opportunity to supply to OEMs (original equipment manufacturers) within the country, but also to TPPA countries, especially the top four countries that produce cars – namely the US, Japan, Canada and Mexico,” he said.
Not only that, Madani also believes that Proton and Perodua could also access other markets under the TPPA, due to the preferential tariff rates of member countries. “But provided they must be competitive in terms of their base cost – that’s why the strategic direction of National Automotive Policy (NAP) is about enhancing competition,” he added.
Madani also said that it’s not too late for the country to establish its footprint in the regional automotive industry through its Energy Efficient Vehicle (EEV) policy, despite Thailand being the automotive hub for the ASEAN region. He contended that there are still many more carmakers that focus on fuel efficiency and low carbon emissions, which have yet to penetrate the ASEAN market.
Moreover, Madani said that thanks to the liberalisation of the automotive industry through the NAP, Malaysian car prices will be largely influenced by market forces in the future. He claimed that the average car prices of 400 variants are now 12.7% lower in the first quarter of this year, compared to 2013.
However, Ministry of International Trade and Industry (MITI) deputy secretary-general of strategy and monitoring Datuk J Jayasri said that he could not guarantee that car prices will be cheaper after the implementation of TPPA. “By right, if [there are] no changes in excise tax and when import duty comes down, you should see a 30% drop in car prices provided there is no exchange rate fluctuation,” he said.
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Madani Sahari still talking kok. Before you talk about TPPA, 2 things Madani has not done.
1) Why have you not asked your boss Najib to honour his promise to reduce car prices by 30%? Why do you still kipas Najib? you already got your Datukship, are you waiting for your Tan Sri ship?
2) For years you have been avoiding the AP crony issues. Why MAI and Madani don’t do anything about the AP cronies? Everybody is losing. 30 million people losing with high car prices whilst 30 AP cronies are becoming billionaires every year.
Don’t talk about TPPA. Do you know TPPA is 2 ways? You think TPPA is one way? Now, Malaysia will order car parts from US and use the TPPA to import at cheaper prices. Judging from Malaysian attitude, Malaysia will import more than what we will export.
And globally, everyone also will ask, why Malaysians themselves have so little faith in their automotive sector and the parts Malaysia produces? Eventually, the white man also will stop importing Malaysian parts in return.
Their own eyes will see, the same parts manufacturers also make for our national car. yet, our national car falls apart in pieces in few years. White man will soon realise, the parts manufacturers here have been cheating their own national car company Proton for years with low quality parts.
You think they will still buy our auto parts?
How still anyone believe the “LAIR” that every new year make “empty promise statement” and lie to Rakyat every single year about 30% reduced price. Infact all Malaysia Automotive manufacturers or dealers increase price !!! (beside 1-2 big foreign brand reduced price).
Stop talking bad about the Gov. If you can’t afford, just buy Proton. (That was the strategy all along)
Yada yada yada yada TPPA,
Yada yada yada yada cheap cars,
Yada yada yada yada export,
Yada yada yada yada EEX,
While in reality,
car prices are still high,
average citizen still need to take 9 year loan,
AP system is still there,
Excise duty is still high,
What change???
Lets continue to not buying any new cars. When stock are not moving, inventories go up, TIV go down and eventually price will go down.
When the buying stop, the killing can too,
When we work together, we can win this.
Let’s vote for BN for tomorrow’s election. BN will make sure car prices come down
TPPA only mention benefits local manufacturer BUT what about customers/future buyers benefits??? All the years same “empty promises make by BN ministry” !!!
Benefit local manufacturers aka crony Proton vendors enough already lah. As long as pocket UMNO diutamakan, who cares about rakyat? Now you’ll know who’s the real party hard
I will vote for BN cause they have given us good and safe cars like Proton. I trust Proton fully. Stupid bashers will say rubbish but I am proud of my Proton.
Be grateful. Our government cares for us
Remember before GST, all the Ministers said prices will actually go down. Lo and behold, prices went, not only 6% but up to 50% up. All the strong BN believers got a shock of their lives. Until today, people sre struggling with the GST lie
So now again, our brilliant Ministers are saying the same thing. TPPA will reduce car prices. Do you really believe this statement?
Err, no. After GST almost all car prices went down. I can search in PT for u but im too lazy to help u cuz u too lazy to search urself.
TPPA is good for us. It will make everything cheaper. Clever people choose TPPA. Dumb people reject TPPA.
I support TPPA fully!
Madani still talking about EEV? hello Madani, MAI is the one that cheated all Hybrid buyers and Honda and Toyota who invested billions to set up CKD plants to CKD Hybrids in Malaysia.
Toyota and honda invested billions to CKD the Prius, Jazz and Civic in Malaysia listening to Madani and MAI. Then one fine day, Government said PODAH to Hybrids and EEV. No more incentive and all that.
Everything collapsed. Honda and Toyota lost billions. Malaysian buyers of Hybrid cars also became laughing stock as their cars got no RV in the market now.
Still Madani talking about EEV ah?
Toyota n honda lost billions??
U know, i get ur frustration, bt it doesn’t mean u just simply come out with numbers from u kno where!
Back to topic, saying good or bad is stupidly naive without any data, research and solid economics regarding TPPA, we obviously have ZERO faith in whatever comes from MAI…
I suggest everyone to google the implications of TPPA just for general knowledge rather than getting the wrong pic from those ‘rocket scientists’ we hv here…
RBA rule #1: Bash first, use brain much much later
Opposition doesn’t even have money to give angpow, and you think they can afford cybertroopers? Only you can get paid with donations.
But why Rakyat still believing in BN ministry??? MAI another SPAD in Malaysia???
Begejillions also I believe in your economics, abang samy.
Everyone shud be like Motor Image working hand-in-hand with TMCA to CKD subaru cars and more importantly to price it reasonably like XV and Forrester CKD which is 31% price down. Or even like Honda MY that is pushing hard for better safety in City, HRV, and even 6-airbags for-all-variants Civic now.
Others that think they can be arrogant like umw toyota just cuz they r Party Hard crony better go die with their overpriced, underspec moving coffins. God kompeni toyota is next.
Without doing anything else, just get rid of AP, all imported cars will be slashed by RM45,0000.
1. Nobody respect me.
2. My statement is God’s statement.
3. TPPA is extremely good to all of us. It is Made in Heaven, Buatan Syurga.
Shud be more than 12.7% lower lah. there r huge discount given for 2014 stock. there are also huge discount for pre-reg 2016 stock
12% car price drop BMW is irrelevant to majority rakyat.
And look at MITI making a fool of itself giving excuses 30% car price drop. Bunch of clowns.
VW already drop more than 30%. What say you?
Logically better focus on big profits auto parts industry than loss making national car failure bailouts.
With cheaper and accessible parts, we can ensure 1990s Iswaras and Wiras can run forever. Many people don’t ever need to buy new cars, leading to poor Proton sales. If Proton doesn’t do well, 30% car price reduction will never happen. Proton will ask for more bailouts. Looks like people are going to drive their Iswaras and Wiras until the Day of Judgment.
That’s IF those parts producing quality accepted by other car manufactures which we know not many others worked like Protong procurement lol..
According to him, in order to increase the export value, “We just have to do more and believe in ourselves…”
Is he talking to school children?
Please talk facts and give educated statements!
yup, thats why malaysia univ is top400 over in the world..
Only fools think uni education is the be all end all. Just ask Bill Gates.
Does that include UiTM/Mara?
With this kind of comment, you better go to primary school again
MAI memang tarak boleh pakai.
Worst than makan gaji buta.
Please jump into the sea and drown, please
TPPA got any effect on road bike price? Want to upgrade my Cervelo to better bike.
TPPA is beneficial for crony car parts maker to make parts like VSC. So shut up and cukurlah ada Proton