The investment, trade and industry ministry (MITI) has said that car prices in Malaysia are market-determined and not controlled by the government, which has provided various incentives and tax breaks for locally-assembled (CKD) vehicles via the finance ministry, Bernama reports.
“The purpose of these incentives includes encouraging the use of locally produced components from vendors, promoting quality investments, and conducting research and development activities in Malaysia.
“Through these incentives and tax exemptions, vehicle manufacturers can offer competitive prices for the local market compared to fully imported vehicles,” MITI wrote in reply to Senator Datuk Ahmad Ibrahim, who asked in the Dewan Negara if the ministry intends to review the prices of Malaysian-made cars, which are perceived as expensive despite zero import duties, forcing people to take long-term loans.
“Perodua produces its Rahmah category vehicles, which are affordably priced at RM22,000, excluding insurance, enabling more people to own a car. Proton also offers the Saga model priced under RM40,000. The government hopes that through this approach, people can choose vehicles that fit their financial capabilities to avoid a heavy financial burden,” added MITI.
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yea right, if they dont impose higher duties, car price should be lower by now
Refer my name
THATS A TOTAL BULL SHEET!
Who put the 100k cap on EV? and for no apparent good known reason, its still a mystery!
lol, seriously talk sh*t man, asked any industrian, things import or CKD all need to go thru MITI. everyone knows MITI > kastam
they try to spin a lot of fake lies and tall tales, same as how they claim the original founder of KL was Sutan Puaka instead of the true founder is Yap ah loy.
Rrrriiigggghhttttt. Then the govt should share how these companies work out their pricing then, and how much tax is being included for the price. I always read the news that car companies provide estimated price, and the final price is to be determined upon approval by the govt. Then explain why cars in Australia, New Zealand and a number of no automotive manufacturing is cheaper? Even it it’s almost the same, the spec will surely be better equipped. Now the govt can stop protecting Proton as almost half of it is owned by Geely, so stop protecting them already. Even if I calculate importing direct from Japan, the car would cost 1 fold when coming to Malaysia.
One will realise how nonsense it sounds where there is cut here, AP there, middle person another and Protection Taxes just to increased the car prices at the protection of the special.
What is government approved price then?
Huh?
So the super fat car import tax doesnt determine the car prices…. ok…
Malaysians knows exactly how misleading the title of this article is.
All talk kok. Trust me, ask honda and toyota to sell their vios yaris and city between 60-85k, and both companies would be more than happy to oblige.15 years ago Toyota started to introduce budget spec entry level known as Vios J, the lowest price allowed by govt as RM69,999.
Honda didn’t even bother. Sell higher, better margin, it said.
WHy do we voted this ppl???? kena tukar lah
Our cars are certainly taxed highly. For CBU cars there is import duty and excise duty. For CKD cars there is excise duty. These duties are pretty heavy. For CBU the import duty is 0% or 30% and the excise duty 75% to 105%. For CKD the excise duty is 75% to 125% of the open market value of the vehicle.
You may ask, why is excise duty levied on CBU vehicles when excise duty by definition is for locally manufactured goods? The reason goes back to the Asean Free Trade Agreement (AFTA) in 1993 which mandated no import duty for vehicles exported between Asean countries. So Malaysia had to impose 0% import duty on Asean sourced cars. However it whallops the tax back through excise duty which contravenes the spirit of AFTA. Well, Proton had to be protected at all cost.
Thailand, the detroit of Asean, doesn’t need a national car company. See how much we are lagging behind them in auto exports. Even BYD setup there for export base to European markets.
Whole Proton kena tipu by Geely, even cannot sell the Emas5 under it’s brand to Thai, Indo markets.
So why they are bising2 about it before
https://paultan.org/2021/03/26/maa-says-new-formula-to-speed-up-vehicle-pricing-approval-from-the-government-currently-in-the-works/
nice joke from MITI , wonder why loan up to 9 years then and we are the only country doing this too.
meanwhile in some other countries you can save up one years salary to buy brand new car in cash
I believe indonesia and Thailand also have similar schemes (longer loan period) because its the easiest way to sell more cars and for banks to earn higher revenue in interests. Though for both countries the high petrol price do deter the tens of millions people in the middle to low category from buying a new car.
Joker statement. If yes . Proton and perodua long time mati and gone in wind
Lol BS. All manufacturers need to wait for them to approve the price.
Market determine car prices…my foot! If this were true, we would have world class affordable cars…not those crappy protectionism. MITI, please don’t mislead ppl. You think we all live under the tempurung meh! See this article already blood boiling dy. Prrfhhh!