According to RHB Investment Bank, the planned subsidy rationalisation by the government will more heavily impact the mid-market segment of the automotive market. In a report highlighted by Astro Awani and NST, RHB this was because the low-income group is still expected to benefit from subsidies while high-income earners are less likely to be affected by the ending of subsidies.
“We are optimistic about the salary hikes for civil workers, with a more than 13% increase likely encouraging consumer spending on significant purchases. However, we are maintaining our earnings assumptions for now, as overall sentiment in the sector remains cautious due to uncertainty surrounding subsidy rationalisation,” it said.
The firm added that the restructuring of the Employees Provident Fund (EPF) to include a new Akaun Fleksibel (also known as Akaun 3) will have minimal impact in terms of spurring sales in the automotive sector.
“It is anticipated that only RM4 billion to RM5 billion will enter the economy annually through these withdrawals. It is much less compared to the RM145 billion withdrawn by 8.1 million EPF account holders through previous pandemic-related withdrawal programs. Consequently, the withdrawal per member this time is expected to be lower,” the firm explained.
It added that the loan approval rate of year-to-date vehicle purchases reached 58% compared to 62-63% in 2022-2023, while gross loans for car purchases only increased by 2.7% despite TIV increasing by 5%. This suggests more stringent requirements for granting loans and consumers switching to more affordable cars.
In the first quarter of 2024, the total industry volume (TIV) made up more than 30% of RHB’s 2024 TIV assumption of 625,000 units. However, this is deemed to be not sustainable and the firm is not expecting sales to reach a new high and should return to “normal” levels after two record-breaking years.
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Agreed. Cheap to full tank 80 liters diesel into Raptor and full tank 60 liters ron95 into Camry yet.
M40 are those driving
Not high-class type
Toyota Honda Mazda
Proton X50/70/90
Harap ade bujet
minyak lagi la
KKB voters! This is time for you to rise up your anger and vote PH out so they know the rakyat’s fury!
Whether PH wins or loses KKB.
Govs don work for the people. They work for the global elitist.
Look at US under bidenomics… fuel is USD7 per gallon. During Trumps time it was USD2 per gallon.!
Failed PH Gomen will think twice to increase just like in previous byelections which they lost they did not raise taxes but after winning a few recent PRK they have up SST to 8%, so the key is to keep them losing until we hit them hard by kicking them out of gomen.
As above. PH Gomen continue to troll millions of Msians
What?! impact more M20? What k7nd of study is that. Fuel hike will impact all. Those in T20 earn more but spend more also on children education, healthcare etc.
T20 kaya, so no impact..b20 will get triple cash aid from subsidy rationalization..M40 got nothing even though got 5 kids.
As above. PH Gomen continue to troll millions of Msians
Nope, not true.
The old classification of household income T20, M40, B40 is already in accurate.
Here in KL the so called T20 barely meets their month end commitments.
It affect them as well and hard. T20 doesn’t mean the house income is 20k per month.
If 20k per month then, no issue if got no subsidize etc. But with household income of merely 12k per month, it is really tough out there.
Government need to help those with household income of 15k and below in cash subsidy to offset the fuel subisidy rationalization.
And yes, unfortunately the Petrol price need to be some how floated(because our petrol price is way too low in this region (only Brunei is lower than us), but the citizens will get cash subsidy to off set the removal of petrol subsidy.
add one more wheel to your tricycle!!. I think you are blind in one eye…
Go to Alam Impian, Puncak Alam and other newly opened gated areas and see for yourself how the T20s are livings in their double storey bungalow lots, with their mercedez, porsches, teslas and ho=bungalow renovations worth millions!!.. these people don pay taxes or they pay minimum… just like the millionaire who kissed pee mx hand after there was a rice shortage!!
Those are clearly not at the classification line of T20. The moment you mention bungalow is already T2 and above.
There is a strange perception of T20 being ‘rich’ heck even T10s are nowhere near ‘rich’. MOST T10 are not even sub millionaires by liquidity.
Do not be surprised that many border-T20 are living from paycheck to paycheck. Especially those with kids.
I’m surprised you’re surprised. The M40 never realised that removal of subsidies won’t hurt the T20 and B40 as much as it would hurt the M40? Why did the M40 support the removal of fuel subsidies?
Maybe it’s a good thing also, now the M40 will finally realise that being M40 in this country is basically the same as doing charity. M40, the vote mules, the tax mules and the punching bag for everyone.
I guess that is why there is a lay flat movement.
Sape suruh dorang sapot PH memang bodoh!
Di Dalam apa keadaan , atau di mana jua keadaan …M40 memang selalu yang yg lebih terkesan…sejak dahulu lagi….kalau dahulu…Rumah Kos Rendah…M40 tak layak beli….nak beli ruma kos sederhana…M40 tak cukup gaji…
sampai lah sekarang….yuran sekolah asrama…jurang M40 dengan T20…sikit sangat….M40 luar bandar..macam t20 bandar…M40 bandar…macam B40 luar bandar…
Adding salt to the wound, M40 has to continue pay tax and enjoys very little.
Of course…
T20 is affordable for EV/Hybrid vehicles
B40 will go for lower-end ICE cars (P1, P2)
M40… makan rumput lah
Who thinks that Fuel Targeted Subsidy will benefit the nation?
What about those working class T20, most of this group of people pay more tax than business people, and their income is much much lesser than business owner… most of those 20k t20 earners are paying 40-50k tax a year… those business man millionaires perhaps paying half of it or even lesser…tax scheme is always not fair to those working class…
hopefully Vpower Racing fuel gets cheaper.
t20 = the bosses that under declare their income, but receive the most tax breaks
m40 = the hardworking workers whose tax payments are standardized and cant escape tax, and end up paying the most but receive the least
What do you mean under declare? Just in case you don’t know that LHDN has launched a series of actions to prevent under declaration. I have talked to few rich people with own business and they had been investigated and fined because of under declaration in the past.
bro its time for you to look at reality and see just how many of the rich people with own business run tax. if they so honest they would not be fined.
How many is that ‘few’?
How many more of rich people yet to talk to you?
You shall also say, whr is the benefits of producing petrol country? Look at Saudi petrol price… what did our giant oil and gas profits ($)? Ask them share with the rakyat.
M40 and T20 pay lots of taxes, yet got penalised for this. Buy medium price to high end price car, tax also in thousands. Whr is these money goes to?
B40, I trust you felt the pinched of car price, a savvy car now need 40k, else take manual. Even that, petrol subsidies is the determination?
Help reduce the country 80b(s) subsidy? MACC commissioner says expected 55b loss per year to those corruptions.
Look east look west look south look north. I still can rationalised this.
the reason fuel is not cheap in Malaysia is because of mahatahi!… he is embezzling part of the profits from petronas to his children companies
Kasian golongan pension. Harap² semua yang yg sudah bersara dpt atau layak menerima subsidi petrol/diesel. Kami di Swak byk guna 4×4 drive kerana keadaan jalan di rural memerlukan kenderaan jenis itu.
This will also affect the below tier T20. People think all these T20 hidup mcm raja, but in fact most of so called just live by each month. Most of the the salary just go to child education and household spending. Especially if you have more than 3 kids and have parents to cater for.
At the end of the day, all the tiers, even M40 and B40, will be affected since the blanket subsidy no more helping to keep the raw materials and food prices down. So, who’s laughing now.
Sabah sarawak not impacted from subsidy rationalization…they don’t dare, only peninsula
Nice….no problem…we have way too much money though
We really need a tax reform
No shit, Sherlock. B40 gets subsidies, T10 doesn’t care, T20 feels the pinch, M40 stuck in the middle. Wonderful research RHB, my grandma who dropped out of school can come to the same conclusion.
Idiots who are saying it’s PH’s fault can go back and live under their comfy rock. Our economy is a complete disaster thanks to legacy cronies and your one and only bossku. Wake up, Malaysia.
Inilah masanya utk kami bertambah kaya dgn menaikkan lagi harga bahan2 mentah. X sabar rasanya nak tidur atas duit smpi terkencing2.