Delayed vehicle pricing approval still an ongoing issue, says MAA – could take four months or longer

Delayed vehicle pricing approval still an ongoing issue, says MAA – could take four months or longer

One of the issues that has been affecting car companies in Malaysia for the past few months is the delayed approval of vehicle pricing, particularly for CKD locally-assembled cars, which has led to certain launches being delayed or estimated pricing being issued in the meantime.

As an example, the Honda HR-V facelift was first previewed in July 2018, but was only officially launched in January 2019. Other models such as the Toyota Rush and Vios, along with the Mazda CX-5 were also introduced with estimated pricing initially.

A more recent case is the Honda Civic facelift, with Honda Malaysia announcing the start of order taking in September 2019, but has yet to officially launch the model. Even new brands appear to be affected by it, such as Borgward, as there is till no official update when it will start its CKD operations.

During a Q&A session held after Malaysian Automotive Association’s (MAA) 2019 full-year review, the association was asked on the current status of the matter. In response, MAA president Datuk Aishah Ahmad said, “I think you are talking about the Industrial Adjustment Fund (IAF), the incentives that we apply for CKD locally assembled vehicles.”

Delayed vehicle pricing approval still an ongoing issue, says MAA – could take four months or longer

“The process is we have to send [an application] to the ABDC (Automotive Business Development Committee), which consists of its chairman, MITI (ministry of international trade and industry), MIDA (Malaysian Investment Development Authority), MARii (Malaysia Automotive, Robotics and IoT Institute), Customs and the MoF (ministry of finance).”

“They have said that this will take three months before they can process whatever application we send in, but the issue is not the ABDC. After that, when it goes to the MoF, you do not know how long it will take before we get the approval letter. It could be four months; it could be more than that,” she explained.

Aishah continued, “that has not changed, but what they have told us is they are reviewing the process and they’re trying to shorten it, which they will announce to the industry. They are now reviewing it.”

In January last year, MITI said it would be taking steps to address the issue of delayed vehicle price approvals, with several measures planned. Among them include increasing the frequency of the monthly meetings held by the ABDC, as well coming 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.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Msia driver on Jan 23, 2020 at 11:41 am

    Lolzz told u all, they want increase the price as selling like hot cake

    Seem they want starting from rm140k..

    Like or Dislike: Thumb up 14 Thumb down 1
  • dong gor on Jan 23, 2020 at 11:46 am

    Please also review the price of the asam laksa by the roadside stalls. Approval needed before we can eat.

    Like or Dislike: Thumb up 20 Thumb down 0
  • Just look at their faces, probably only know how to insert how many car units company A, B, C sold monthly into Excel sheet. Irrelevant body.

    Like or Dislike: Thumb up 21 Thumb down 1
  • seancorr (Member) on Jan 23, 2020 at 12:02 pm

    This happens when every single person who is in charge of reviewing goes to the mamak few times a day instead of sitting down and actually doing his work.

    Like or Dislike: Thumb up 32 Thumb down 2
  • msia driver on Jan 23, 2020 at 12:47 pm

    all of them makan gaji buta, actually they should fight for lower car price…lolzz

    Like or Dislike: Thumb up 17 Thumb down 0
  • vivizurianti on Jan 23, 2020 at 1:05 pm

    In Malaysia….lots of things are done “man-man-lai” (slowly slowly done). Even govt hospital emergency ward oso slow-slow. Relek-relek is everywhere thesedays

    No wonder Malaysia is lagging behind some “ahem” SEA countries.

    Like or Dislike: Thumb up 9 Thumb down 9
  • the delay is obviously bcs the gomen wants a higher price. expect a lot of back and forth between dealers and miti before they can get the prices approved.

    Like or Dislike: Thumb up 5 Thumb down 0
  • Mari Lepak on Jan 23, 2020 at 3:11 pm

    It’s ok. Let’s have meeting every week. We can relax, take time off, drink teh tarik and makan karipap.
    When we feel that we have enough meetings, we will just pluck any figures from the air and finalised the approval vehicle pricing.
    Relax-lah, brother!
    That’s how everything is done in Bolehland

    Like or Dislike: Thumb up 8 Thumb down 3
  • Levin on Jan 23, 2020 at 3:22 pm

    How can we be on par with our neighborhood countries when a simple thing such as approving a car price can take forever? I mean seriously, this is not like 1MDB case which might be dragged up to 20 years or so. Just approve it and get over it. We people deserve to buy newer/better cars instead of waiting for stupid excuses and keep blaming other committee/institute/association/etc… all these should be abolished and its freaking 2020 already, we should simplify things instead of making it complicated. What happened to being agile and where’s the automation?
    At the rate we are going, looks like recon card dealers could even get their hands on the “new models” and grey import them quicker than the manufacturers themselves.
    Just wondering how come grey importers can quickly bring in cars (various makes/models) and it doesn’t seem to need approval from such ridiculous agencies also? The only thing that supposed to be involved is the customs and MoF, that’s all.

    Like or Dislike: Thumb up 12 Thumb down 0
  • Same L0rr on Jan 23, 2020 at 3:29 pm

    This is u turn.. not delayed! u turn u turn u turn u turn u turn turn!

    Like or Dislike: Thumb up 8 Thumb down 1
  • jinggo on Jan 23, 2020 at 4:17 pm

    this is the result from the incompetent peoples.

    Like or Dislike: Thumb up 7 Thumb down 0
  • vivizurianti on Jan 23, 2020 at 6:54 pm

    The long delay is because of the combination of:

    incompetent ppl,
    undecided ppl,
    atas-pagar ppl
    u-turn-ppl,
    egoistic ppl,
    lazy ppl,
    gila kuasa ppl
    syok-sendiri ppl
    AWOL ppl
    blur-sotong ppl

    Malaysia Boleh!

    Like or Dislike: Thumb up 11 Thumb down 0
    • Crony on Jan 23, 2020 at 9:33 pm

      Terima kasih PH for giving us all those people. he he he he he….

      Like or Dislike: Thumb up 5 Thumb down 0
  • Why must bureaucrats approve car prices? This is the type of dumb regulations trump would have abolished. Too much rules and regulations killing our businesses.

    Like or Dislike: Thumb up 15 Thumb down 2
  • Dennis on Jan 24, 2020 at 8:02 am

    Car is a necessity in Malaysia and it has been very expensive especially when comparing to the pay of the people. Pls don’t increase anymore. Don’t chase away the investors

    Like or Dislike: Thumb up 1 Thumb down 0
  • RejimKejamGanas on Jan 24, 2020 at 8:13 am

    Thought MoF being run by apek now should be more efficient and competent. Or only applies to mainland Chinese, like in Proton?

    Like or Dislike: Thumb up 5 Thumb down 0
  • truepuod on Jan 24, 2020 at 2:51 pm

    deswai kim jong un anti aircraft gun is useful to shoot the goons. hahaha

    Like or Dislike: Thumb up 0 Thumb down 0
  • Ollie on Jan 24, 2020 at 6:03 pm

    Why is my taxpayer money funding these stupid committees that are just making things worse for the rakyat

    Like or Dislike: Thumb up 4 Thumb down 0
  • civicEK on Jan 29, 2020 at 4:03 pm

    mana janji kereta murah dei!

    Like or Dislike: Thumb up 1 Thumb down 0
 

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