The ministry of international trade and industry (MITI) says it will be taking steps to address the issue of delayed vehicle price approvals, which has been affecting car companies in Malaysia since last year, The Star reports.
One of the steps is to increase the frequency of the monthly meetings held by the Automotive Business Development Committee (ABDC) – which is chaired by MITI – from once to twice a month. This, according to deputy minister of international trade and industry Ong Kian Ming, will help reduce the time needed to process automotive incentive applications. He said the dates have already been identified and it will be circulated to members of the automotive industry.
Ong said that MITI will also come up with an enhanced process flow and client charter of ABDC to ensure that there is greater clarity in the process of evaluating incentive applications. As part of this, the cost and benefit analysis (CBA) for energy efficient vehicle (EEV) customised incentive applications are set to be reviewed to ensure a fair and equitable evaluation process.
He said that the CBA for the Industrial Linkage Programme (ILP), which is done by the Malaysia Automotive, Robotics and IoT Institute (MARii) needed to be more transparent and detailed than it is now. He added that it also needed to be updated to take into account new conditions in the car manufacturing and automotive sector.
“It’s a process of refining and updating the CBA. We want to make it as clear as possible to the industry players, so that the ABDC process can be sped up, and the issues that have been raised by MAA in terms of delays that had occurred last year will be minimised, moving forward,” Ong said.
He explained that it will take about two days to process and approve the ILP at the ABDC stage before a letter is sent to the finance ministry, which can then decide on the level of excise tax that can be adjusted or reduced. As for customised incentives, he said it will take about a week.
Previously, Ong had stressed the importance of the ILP and why it has to go through the ABDC, stating that if car manufacturers want to obtain a higher exemption on excise tax, MITI will want to know what they can bring into the economy in terms of manufacturing activities as well as energy efficient/saving technology.
The purpose of the ABDC is to evaluate and recommend the ILP, Multi Sourcing Parts (MSP) and customised incentives for EEVs under the National Automotive Policy (NAP) 2014. The recommendations by ABDC are for the consideration of the finance ministry when it comes to deciding the amount of duty reduction that will be extended to the vehicle companies.
The Malaysian Automotive Association (MAA) said it hoped that the request for incentives to get pricing approvals will be sped up in the future. Last week, MAA president Datuk Aishah Ahmad said that the finance ministry had been delaying approvals for new car pricing applications, even after the ABDC had decided on the incentives.
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A lot had been said about EEV incentive, it just isn’t transparent and too complicated. It’s crap compared to Thailand’s green car incentive.
MAA, Madani and all the previous goons just don’t get it and just wanna blame new govt for the shitty mess they created. We still lag behind Thailand. Madani tok kok about wanting us to be hybrid, EV hub, but car makers decide to walk the talk and go to Thailand instead.
If Datuk Aishah, Madani and others have a sense of shame, they should resign, but they keep comming everyone without the slightest sense of shame. Malu apa bo55kuuuur
Dedak2.0 can cover any shame, even the shameless basher troll everytime got caught spewing his fake news bollocks.
The problem in Malaysia is very simple. Nearly all car companies are owned by the Government or their GLC owned kroni.
For example Proton is DRB, PErodua is UMW, Toyota is UMW, Honda is DRB, BMW is Sime, Ford is Sime, Hyundai is SIME etc etc
This was the previous corrupted Government’s way to milk and perah the rakyat with super high car prices with very low safety spec cars.
So, the Government cannot act neutral like Government’s of other countries. Cause in Malaysia, if the Government price the car too low or give you too much safety spec, the GOvernment themselves is losing money!
In other countries, the Government will sue the car companies if they price too high or give you very low safety spec because the Governments don’t have a share in the car companies
In the US for instance, the Government sued Toyota on behalf of the rakyat and to protect the rakyat. In Malaysia, how is the GOvernment going to sue their own UMW?
No such thing. US has protek policy for their automotive industry, otherwise, it wud have been easy for Jepunis or Kimchi brands to direct impot cars into USA and undercut kawkaw the local brands. They can priced higher but not lower, of cuz US pipu wun go for Toyota or Hyundai if they r same same price with Ford, GM, or Chrysler. So it was market forces and knowledgeable US consumers who dun have blinded Jepunis loyalty, that forced car prices down, not the Gov.
this is the same john who told us Malaysia had the cheapest cars in the world and cheapest petrol in the world. Sure I bilip you!
Dear Johnnie
I think u have a psychiatric condition called ” reverse bi polarity “‘.
Kindly have PH gomen sponsored check up.It is free of charge.
I dont even bother reading anything from john anymore. We all know it is propaganda.
I am for certain, john is at least more trustworthy that a troll (yes I figured you’re that troll in the Driven article).
Hey, Pakatan does not give dedak. This is not your previous corrupted coalition. Pakatan wins the heart of the rakyat
The rakyat sincerely loves and supports Pakatan.
Well said tok. Dato Aishah, Madani and all the previos shitty goons Sembang. maluapabo55kur
Make sure MITI is run by a foreign CEO like Li Chunrong.
Li Chunrong in 6 months found out what was the cause Proton going bankrupt. He identified that the suppliers and vendors were overcharging Proton big time.
This is something local CEOs could not identify in 20 years also.
So moral of the story, get a foreign CEO like Li Chunrong to run the company or MAI.
You wll see better efficiency
We can’t compare to Thailand la, we still kampung people with kampung mindset
This is the only reason why all car companies lari from Malaysia to open in Thailand.
20 years ago, we were the Detroit of Asia. But because of corruption, all car companies went to Thailand to make Thailand the Detroit of Asia.
Since 20 years ago, Thailand has got few hundred billion USD in investments. This is about few TRILLION ringgit.
Thailand also has benefited from few hundred thousand jobs which could have gone to Malaysians.
I think MITI, MAA and MARii does not seem to be doing their job well
Thai people make decisions fast. What Thai people decide in 1 meeting, Malaysian people need in 20 meetings to decide the same thing
We are not that bad. We are Asia BMW. Now is also ripoff of China.
In Malaysia we need to minum teh and makan karipap and makan kuih lapis during meetings.
Then when decision is not met also, must have majlis bersurai.
This happens at least 10 to 20 times. At least 9 months to 1 year.
In Thailand, they come out with price within 3 days.
Far too long.
All talk.
No action.
Better close shop.
So far only see MITI speeding up process to increase car prices
Yea… it will be completed once they are sure there wont be any more by-election in the near future.
Just reduce car prices by 50%.
MITI, pui all corrupted people being there how to progress. Thailand ahead now all because of stupid people in MITI.
Too much bureaucracy in the car industry. The government should stay out of the car industry. After all the car is just another consumer product just like thousands of items.
Is this a joke?
They must meet face to face for the sake of agreeing on a price…Wow…they really have nothing to do. I wonder how much saving there is if we removed these redundant post.
yb deputy minister,
like usual, this all looks brilliant on paper but the more pertinent question is, can it be done? the govt has backtracked on a lot of promises and kept on the policies of the olden days (which they themselves opposed & already provided alternatives for).
when reduce? after cny?
Or 5years?