The Malaysian anti-corruption commission (MACC) is reportedly investigating alleged irregularities happening in the local tyre industry. These irregularities include suspected price manipulation practices that are said to have placed an undue burden on consumers, as the New Straits Times reports.
An unnamed source told the news publication that one key concern is the importation of tyres, which can reach up to 300 containers annually. It is said that the government may be losing up to RM70 million a year due to leakages in the collection of import duties involving approximately 100,000 imported tyres, mainly for heavy vehicles, each priced at an average of RM1,600 per unit.
According to the source, the losses are apparently due to unpaid import duties of up to 40% on tyres imported from non-AFTA (Asean Free Trade Area) countries as well as collections from the 10% sales and services tax (SST). Additionally, some of these tyres are believed to be unsafe or unsuitable for use on Malaysian roads, raising serious road safety concerns.
“MACC is closely monitoring the issue and will take further action, including opening an investigation paper if necessary,” the source said. Contacted by the NST, MACC’s special operations division senior director Datuk Mohamad Zamri Zainul Abidin confirmed the matter, but declined to comment further.
As indicated by the news report, the controversy comes amid rising tyre prices in Malaysia, which have reportedly increased by five to 10% in recent years, with some sources claiming prices have tripled since 2022. While the price hike has often been attributed to the weakened ringgit, concerns are mounting over the quality and safety of imported tyres being sold locally.
Earlier, Berita Harian reported road safety expert association (RSEA) founder and advisor Jamil Manan Supri as saying that tyre-related issues are a leading cause of road accidents, especially those involving heavy vehicles.
He said that despite repeated incidents of tyres failing – either from exploding or detaching – on these vehicles and becoming “flying tyres,” enforcement in this area remained weak, and that if not corrected, would result in more “ticking time bombs” that could strike at any moment, without warning.
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Too little too late. And any is just wayang sandiwara. It looks like a PH minister will have to die in such an accident for PH Gomen to take serious real action.