AmInvestment Bank expects demand in the automotive sector to increase this year once the salary hike adjustments for civil servants, announced by the government in May, is made. It said this is because 1.5 million civil servants will have higher purchasing power once the revisions are completed and will thus find it easier to receive bank approval for loans.
Taking that into account, the investment bank has revised the anticipated total industry volume (TIV) of 740,000 units for 2024 to 750,000 units, as Bernama reports. The financial institution added that national carmakers Proton and Perodua are expected to benefit most in terms of increased sales.
“A higher salary automatically means a better leverage ratio and we believe car loan financiers will happily approve new loan applicants. We are confident that Perodua and Proton will enjoy greater demand as they are the most popular brands among civil servants,” the investment bank said in a sector update report released yesterday.
Although the exact rate of the salary increase is not yet known, communications minister Fahmi Fadzil hinted earlier this month that civil servants’ salaries will be increased by 15% to 43$ by the end of 2024 under that revised Public Service remuneration system (SSPA).
Details of the salary adjustment mechanism, which will allow civil servants to check and calculate their salary hike, is set to be announced on August 16.
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Where civil servants with more money want P1 & P2? They die-die will want a Honda.
Dah berjaya duduk di bandar.
Majority will trade their money for gold. Unwise to waste money on liabilities ok.
if many ppl so discipline & smart, there will be less new car sold every yr instead of achieving y-o-y increment. Many will indulge in material things instead of necessity. Thts y any salary increment will nvr enuff! The rat race will nvr stop! Actually, can blame on society tht only matters on showing off instead of living humbly!
I rarely comment but had to this time.
Nicely said!
Since when public servants are wise people?
Haha…well said. My neighour die die want a BMW and Merz. Their previous cars were perfectly fine, but tarak class.
Hello, hike of gaji is 1 of Disember lar, you need 3 pay slip for loan application, is this year hike sales is not due to gaji naik scheme announce by PM, this year. Next year maybe but hike this year is not
Ever heard put the cart before horse? Civil servant already make a booking or apply for personal loans ahead of the hike.
Hello, u think some naive civil servants will wait till Dec1 ?
They will take out credit card,swipe at the nearest P1 or P2 dealer as booking.Some models like Bezza take 3 to4 months for delivery.
By the time loan approved Dec 10,they can start balik kampong ,show datuk nenek keta baru.
The only problem is their debt portfolio has expended to scary limits.
Courts Mammoth loan,Bike loan,Car loan,Co op loan,Bank personal loan,Housing loan…macam macam loans to the brim..thats how they survive.
Low salary also can get loan. They will just use future money first!
After the salary hike, all essential items wil also increase, dun believe u just watch.
I choose watching.
Petrol subsidy removal will balance the interest in buying car.
Sohai, government only intend to remove it for T20, not B40!
Government give them a salary hike so that they can live comfortably in the midst of inflation. those that use the money to buy car to bergaya is really dumb.
They are!
Clear evidence that everyone knows that civil servants are not truly underpaid.
Only their needs and priorities are set wrongly.
They need luxury and prioritize easy work… that’s why they become civil servants.
Just ask any Rakyat who are not civil servants that is satisfied with their service.
Even their own complaints about other departments.
I went to one of them last week and guess what.
1. 2 reception sitting there playing handphone before knowing what I truly need, told me to go to another department saying it’s not handled by them.
2. When they cannot answer me, call a superior who did the same taichi stance telling me to go another department in another town.
3. When I threaten to complaint and raise this publicly and legally, then started asking everyone which finally one of them answered “Yes, the record is on the reception table already prepared earlier. Nah… sini record itu”.
Really syiok, 6 person staffing but only 1 person do work and all taichi first ask later attitude.