SHOULD THE GOVERNMENT BAIL OUT PROTON?

SHOULD THE GOVERNMENT BAIL OUT PROTON?

Jefferson Lim's (my) Opinion:  My father side family members already owned 12 Protons since 1992.  For me, I have MOSTLY Great experience of owing Proton Cars having owned 2 Protons namely 1995 Blue Proton MPI Catalyst Auto  (UK-spec Iswara) from 2000 to 2008 (READ MORE HERE!) and 2001 Proton Waja 4G18 (A) from 2011 to 2015.  Both were generally reliable cars in their own way.  

For my 1st car, Proton MPI Catalyst, I encountered the following MAJOR problems:

1) ECI-Multi Throttle body malfunction (replaced 3 times)

2) Power window failure (replaced twice)

3) Right rear wheel bearing (replaced twice)

4) Makan Minyak Hitam (Changed the Piston ring oil seal)

5) Rust-in-roof blisters (fixed once)

I've owned both my Protons up to age 13 years and 14 years respectively and guess what?

The Gearbox still Original.  Very LOW Maintenance costs. 

As for my Waja, I only faced 4 Problems:

1) Power windows (changed 3 times FR left and 4 times FR right, 2x Rear)

2) Makan Minyak Hitam (Changed the Flywheel oil seal)

3) Central locking Failure (replaced twice)

4) Broken Door handle (replace twice)

Thank God NO Rust for the Waja.  Again, 14 years ORIGINAL Automatic Gearbox.  MUCH MUCH Better than VW or Ford major Gearbox issues.

END OF MY Proton Experience...

Article source from "Stay Tuned blog"

written by Armin Baniaz Pahamin.

Proton Edar Sdn Bhd (PESB) has appointed 52 years old Rohimee Shafie as its 11th Chief Executive Officer. Most of Proton Edar Dealers Association Malaysia (PEDA) committee members have been around since the first Proton Edar Sdn Bhd (formerly known as USPD) Chief Executive Officer, Dato Rashid Rahim. As PEDA President, I have served under 6 of the former 10 CEOs and have served all 10 CEOs as PEDA committee member, Vice-President and Deputy President. We have also been under former Proton Holdings Berhad (Proton) Managing Director Tengku Tan Sri Mahaleel, Proton Joint COO Dato Kisai Rahmat & Dato Kamarulzaman Darus, Proton MD Dato Sri Syed Zainal Abidin, Proton CEO Datuk Lukman Ibrahim and Dato Harith Abdullah. PEDA welcomes and look forward to work closely with Dato Ahmad Fuaad as the new Proton CEO.

We have seen various policies that destroys the dealers network and policies that really improved our total sales. Unfortunately, everytime a new CEO was appointed, we have to start the same bad and the good policies all over again. Ironically, arrogance and ego took the best of any newly appointed. Despite the promises made by Tan Sri Khamil Jamil when DRB-Hicom first bought over Proton, to be dealercentric, in reality Proton & PESB Management took the dealers network (except for a few favorite dealers with special treatment), akin of a thorn in a bed of roses. With plummeting sales (up to the point where dealers can hardly break even), stricter parameters were introduced restricting further dealers whom are hungry for business, to do sales.

Since DRB-Hicom took over Proton in 2012, Proton car sales has been downhill from a total sales of 141,120 in 2012, 138,753 in 2013, 115,782 in 2014 and last year 2015, Proton hit its lowest sales record of only 102,175.

Personally, I don't think DRB-Hicom management style works at Proton. There is no empowerment and decisions took longer than in the past. Reaction and responses to market sentiment is poor and do not get me started on the production deliverables of cars to be delivered to Proton car buyer. The mismatching of customers order to manufacturing production worsens on the backdrop of non-availability of cars for the dealers to sell. The communication channel from top management to the middle management and to the dealers were distorted. Whatever that was resolved and discussed between PEDA and top management was not properly minuted and communicated to middle management as well as the dealers network. With an already over congested dealers network, the addition of 29 Suzuki dealers adds on alot more burden.

Relationship between PESB management and PEDA whom represents the dealers network distanced further and further that in February last 2 months, we seek an audience with Tun Dr Mahathir Mohamad, Proton Executive Chairman. 

Tun Dr Mahathir Mohamad seems to be the only passionate driver in Proton. His passion, vision and determination to ensure the success of Proton is exemplary. Tun Mahathir's resignation is a great lost to Proton. Most of senior executives in Proton and PESB are there for their own survivability and not with the same passion as Tun Mahathir and the dealers (whom had exhausted their life time savings struggling to stay with the eco system). The dealers whom are capitalist have all surrendered their dealership because there is not much money to be made during this trying time. What is left, are those hard core dealers whom truly believes in and will die with Proton.

The government should provide the grant to Proton with Tun Mahathir driving the national car. Any grant extended to Proton with Senior Executives on contract running it, will suffer the same fate as in the past. Proton needs a driver as passionate as Tun Mahathir, and a leader such as Dato Sri Syed Zainal whom inspires rather than penalise the network. Proton Edar needs a Chief such as Dato Maruan Said who focuses in nothing else but to maximize sales. 

Should the government bail out Proton? A popular answer will be a big NO but really, what MITI had failed to provide, is the monetary multiplier effect that Proton has contributed to the economy since its inception in 1982. 

There is nothing wrong with Proton business model except for the person who is running it. Tengku Mahaleel had accumulated for Proton more than RM4billion in cash reserves. Proton lost its no 1 position under Dato Azlan Hashim and his Joint COO, Dato Kisai Rahmat and Dato Kamarulzaman Darus whom succeeded Tengku Mahaleel when Tengku was dismissed. Proton almost made a comeback under Dato Sri Syed Zainal Abidin.

The dealers network stood by Proton through thick and thin from those period when Proton car owners can voiced out 10 complains in 1 breath to where it is now, 1 complain in 10 car buyers. The dealer is the first party that get spit at by any passersby for bad quality, manufacturer defective parts and long waiting list from production mismatched. Dealers livelihood should be given due consideration by the government and the new Proton management. We believe, the government should have a representation both at Proton and Proton Edar if the government is extending any grants or financial assistant. There are alot that needs to be done both at the manufacturing and at the distribution network.

The dealers network also condemns Proton being brought into any political conflicts. 

Read my next piece: Khazanah to be blamed for Proton downfall.

The past Proton Edar CEO since inception are as follows:

1. Dato Rashid Rahim

2. Abbas Mehad

    Stanley Tan (Acting CEO)

3. Datuk Maruan Said

4. Ahmad Tifli Talha

5. Datuk Maruan Said

6. Mohamad Shukor Ibrahim

7. Ahmad Suhaimi

8. Dato Hisham Othman

9. Azmi Idris

10. Norzahid Zahudi

I am ORGAN DONOR & I DARE YOU to join me!

I, Jeff Lim pledged to Donate my Organ (touch wood) when I die.  I'm sad to read today's Star that only 1% of Malaysians pledged to donate their organs after death!

 Ironically, the same article also said there's 7,000 people killed in road accidents, mainly involved young ppl yearly! Therefore I urged everyone to take the challenge and pledge to be organ donor! 

And I have no regret whatsoever! Cause I don't smoke, drink a little (socially) only and have relatively good heart, healthy kidneys and relatively good pair of eyes (250/275 short sighted only)! 

MORE TOUCHING PHOTOS and ARTICLES:

 Above: Proof of YOURS TRULY (me) "IKRAR UNTUK MENDERMA ORGAN SAYA SELEPAS MENINGGAL DUNIA" (Touch wood).  The process is EASY and HASSLE FREE as it just took 5 minutes of my time to PLEDGE!

 Above: An ARTICLE from The Star Dated 19 February 2013 about Amanda Tan.  It's HER who  INSPIRED me to WRITE THIS BLOG ENTRY to CREATE AWARENESS of being an ORGAN DONOR.

Above: Articles snapped from Yesterday's (20 Feb 2013) The Star praising Amanda Tan on the left column and 2nd article PLEADING Malaysians to make their pledge to be ORGAN DONORS!

ABOVE: AN ARTICLE in Yesterday's The Star (20 February 2013) HIGHLIGHTING the Importance of Organ Donor and urging Government to provide INCENTIVES to Donate Organs!

If you are touched by this post and wish to Donate your organs kindly call toll free 1800809080 or visit http://agiftoflife.gov.my/ to pledge as organ donor!  I DARE YOU!!!

Photo Snapshots CREDIT TO THE STAR Newspaper 19 and 20 February 2013.  That's all folks, thanks for having the time and patience to read this blog entry.  

WORST RESALE VALUE CARS (Updated 11 Oct 12)

In Malaysia, typical bad resale value car have the following characteristics which are divided in 4 categories (in my book):

1) Most cars with Petrol 2.5L engine capacity and above (EXCEPT Mercedes Benz C-class and E-class). Why? EXPENSIVE Road tax, High fuel consumption fear. Also, for BIG car such as BMW 7-series, there's NO DEMAND for used ones as MOST of 7-series owners are RICH, hence few will BUY USED units.

2) LOOKS of the Car. Eg. POORLY Designed car such as Proton Juara. Few would buy a 4+2 seats (the 3rd row of seats are for KIDS as it is small, has minimal paddings and poor legroom. The car's like BRICK on wheels. Rear lights are placed VERY LOW and at the Bumper. Not practical. Engine's too small at 1.1L and underpowered... Another WIERD looking car's FIAT MULTIPLA. Another poor resale value car as it has NO Automatic gearbox and to many "WORLD's UGLIEST CAR". This is NOT my word, it's VOTED by many European and Malaysian (TORQUE MAGAZINE) Publications...

3) HUGE Discounts... How do you feel if you bought a newly launched car at RM165,000 in 2000 and the car's priced RM20,000 cheaper in 15 months time. PISSED right? Adding salt to the wounds, in 2003, the car had FURTHER Discounts of RM20,000 which makes it RM125,000.  Wait, I haven't finish, in LATE 2003, the car's renamed as a NAZA and another RM27,000 cheaper.  The result?
Resale Value badly affected. Which car is this? KIA Carnival/Naza Ria!

4) Image/Perception of the car brand. Malaysian tends to stereotype certain car brands. Eg. Alfa Romeo known for Overheating problems, Fiat is known as "FIX IT AGAIN TOMORROW", Citroen = Sit-tou-long (means rugi sampai habis), and Volvo = drinks petrol. FORD = FIX OR REPAIR DAILY, To them, most continential cars (Except Mercedes Benz) = high maintenence and spare parts costs. Own cars like Saab or Skoda typical Malaysian would question your taste or give bad comments...


I've compiled 25 worst resale value cars. BUT I'll only list out the top 10 which were very CHRONIC/SEVERE/TERUK Cases. The rest of the cars were pretty close and depreciated FAST but spread out in the span of 3 to 5 years... BUT these 10 LOST A HUGE Chunk of their VALUES at the 1st year itself... Here are the lists:

1) Chery Alado 1.6 57% retained value in 1 year!
2) Chery Tiggo 60% retained value in 1 year!
3) Berjaya Changan  CV6 1.3 Hatchback 65% retained value in 1 year
3) Berjaya Changan CM8 MPV 65% retained value in 1 year
5) Chery Eastar 68% retained in 1 year
6) NAZA SUTERA/FORZA 70% retained value in 1 year.
6) Mercedes S-class (S420 to S500L):  70% retained value in 1 year (SHOCKING BUT TRUE eg. S500L, new RM1,000,000.  1 year later: RM700,000).
6) BMW 7 series (730i and to 760LI).  ALSO 70% retained value in 1 year.  Eg. 730Li  New 680,000.  1 year later RM450,000.
6) Jaguar NEW XJ  (Also 70% retained value in 1 year)
10) KIA Carnival/NAZA RIA. 75% retained in 1 year.

For the top 6, what to you expect?  ALL CONQUERED BY CHINA CARS!

FOR the 3 LUXURY cars at No 6 to 9.  It's due to the PROHIBITIVE ROAD TAX Structure in our Boleh Land (Malaysia).  S500L roadtax is WHOOPING RM14,000 P.A.  (Doubled for Company registration = RM28,000 P.A.  Therefore, NO 2nd hand value.  SHOCKING but true.


As a comparison, see my previous topic: "Best resale value vehicles". The top 10 best resale value cars retained their value from 74% (Mitsubishi Lancer GT) to 80% (Mini Cooper) IN 3 YEARS!!! The 10 cars above RETAINED 57% to 75% of their resale value IN ONE YEAR!!! Again CHRONIC/SEVERE/"TERUK"/SAD Cases...

NOTE (17/1/07): These are "Volume sellers" (ie. "quite good selling" and easily available in the used market). There were brands like Fiats, Opels and Saabs and certain models such as Citroen C5, Alfa 166, Peugeot 607 which Resale value EQUALS or WORSE than the cars above, but they were RARELY AVAILABLE in the used market AND if you found one, the price will be DETERMINED by buyers itself (ie. No FIXED Value). (END OF NOTE)


Now will I fear of getting sued BY Berjaya Changan, Chery AND NAZA KIA? NO! I'm just reporting the facts based on my calculations. The Kias BELONGS to Category #3. It's caused by HUGE DISCOUNTS by NAZA-KIA itself. I pity those 1st batch Kia Optima buyers! They had to pay RM130,000, only to found that the SAME CAR costs RM27,000(!!!) LESS within 15 months!!!

That's all folks, thanks for having the time and patience to read this blog entry.  An original Jeff Lim's production.  My original work.  Not to be copied without credits or links.  COPY LIKE A MAN!  Don't Plagiarise!!!

RM30bil in car excise duty collected, says Najib

KUALA LUMPUR: Car excise duty collection from 2007 till last year totalled RM30.2 billion, Prime Minister Datuk Seri Najib Tun Razak told the Dewan Rakyat Monday.

A total of RM4.7 billion was collected in 2007, RM6.2 billion (2008), RM5.7 billion (2009), RM7.1 billion (2010) and RM6.5 billion last year, said Najib, who is also Finance Minister, in his written reply to Hee Loy Sian (DAP-Petaling Jaya Selatan) during question time.

Hee wanted to know the total car excise duty collected between 2007 and last year and whether the Finance Ministry intends to lower car excise duty with a view to reduce car prices for the people's benefit.

Najib said car prices are determined by several factors and not merely based on the tax rate.

Production, transportation, advertisement and distribution costs as well as carmakers and distributors profit are elements that ascertained car prices, Najib said.

"These elements are beyond government control. Hence, any proposal to lower car prices has to be studied thoroughly so that the outcome can really benefit the people besides helping to bolster competition in the local automotive sector in the long-term," he added.

 -Bernama

Driving tests using auto cars deferred

KUALA LUMPUR: Driving tests using automatic transmission vehicles that was to have been implemented last month has been delayed pending approval of the allocation to print the relevant books and material for driving schools with the introduction of the new driving education curriculum. 

Deputy Transport Minister Datuk Abdul Rahim Bakri, in disclosing this, said the estimated expenditure was RM5 million. 

"The new curriculum is ready and we expect the tests to be implemented within this year," he said.

The Government had announced that the switch to automatic transmission vehicles would be done in May to enable more Malaysians, especially the older generation and women, to obtain a valid driving licence. 

The new curriculum stresses on producing courteous and disciplined drivers, while the old curriculum had emphasised on dexterity and comprehension of traffic rules. 

- BERNAMA

Bank Negara defends rules

SOURCE: CLICK ME!

KUALA LUMPUR: Bank Negara has defended its move to impose responsible lending guidelines among financial institutions amid continued unhappiness from some automotive players that the new loan rules are affecting their sales.


The central bank said it was doing its job to manage household debt as it was expecting debt levels to increase this year.

“We are a banker and adviser to the Government, playing an active role in advising on macroeconomic policies and managing the public debt. 


“The guidelines are meant to avoid the excessive accumulation of household debt, particularly among households that are more vulnerable to income shocks,” it said in a statement, adding it did not see a need to review the guidelines.

(Italic: WELL SAID by BANK NEGARA!) 

Bank Negara also said that its job was to bring about financial system stability while fostering a sound and progressive financial sector within the country and at the same time promote a prudent conduct of monetary policy.

The central bank added that Western economies such as Australia and the United States had also duly adopted relevant measures after the experience of the US subprime financial crisis and the eurozone debt crisis.

Perodua and Proton Edar Dealers Association Malaysia (Peda) recently indicated, from the tone of statements made to the press, that they were not too happy with the responsible lending guidelines which have come into force since the beginning of this year.

In a statement issued recently, Perodua put the blame on Bank Negara's responsible lending guidelines after its year-on-year sales declined by 11% in March from 18,000 sold in the same month last year.

(BOLD: WHAT A SELFISH PEDA businessmen)

However, Perodua's sales in the first quarter this year have stabilised, easing 2.2% to 44,700 vehicles for the first three months of this year from 45,700 vehicles registered in the first quarter of 2011.

Peda president Armin Baniaz Pahamin said it would meet with local banks to iron out issues relating to Bank Negara's responsible lending guidelines.

END OF SOURCE...

Jeff's (otoreview) opinion: 

If your customer can't afford the Loan (to buy) then, EASY, dear Car Dealers/Distributors just don't sell to them.  If still want to sell then make it affordable. You just can't have the cake and eat it this time round. What a bunch of selfish businessmen.

For the buyers, what's your problem?  

if cannot afford to pay for a new D-segment new car then buy a new C-segment.  Or if cannot afford New car then buy a used car which I strongly recommend at the moment.  I don't see a point to complain about this issue!

MBPJ above the law? Check this out!!!

In this blog entry, I'd like to show you 2 articles on MBPJ staff abusing their parking lots... Before that, I'd like to show you what I "discovered" on 11 Nov 2011 before I paid my MBPJ Summon. My offence? I kena this summon while I was away for 10 mins.

This car pictured was parked at "OKU" parking lot for AT LEAST 3 hours, Yet no action taken.

Note that this "above the law" Perdana committed 3 offence.
1) Parked at OKU Parking Lot
2) Expired Road tax
3) Dark tinted glass.

YET NOT A SINGLE SUMMON ISSUED!!!

Enjoy these wonderfully taken pictures:

This is the Last summon I'm going to pay. Received Another summon 10 days later at SS2. An irony as I was only away for 10 mins (tapau McDonalds).


Upon closer inspection, this car got "KAKITANGAN MBPJ 2008/2009" sticker and Expired Road tax.

I hope MPBJ/JPJ or Polis who read my blog entry go after this Offender.

Without further ado, I now present you 2 articles showing MBPJ blatant ABUSE THE POWER!!!

Article 1:

MBPJ staff ‘abusing parking lots’

SOURCE (Click me)

B Nantha Kumar March 26, 2011 PJ New Town retail outlets have seen a drop in business activities because Petaling Jaya City Hall appears to be a 'turning a blind eye' to the city's parking woes.

PETALING JAYA: Frustrated residents have accused the Petaling Jaya City Hall (MBPJ) personnel of abusing the public parking lots in and around the city.

According to them, MBPJ staff occupied most of the public car parks throughout the day for free and inconvenienced the public.

Petaling Jaya, Selangor Resident’s Association Coalition (APAC) president Johan Tung Abdullah said they were very concerned about the issue as it had resulted in a drop in business activities in the area.

“The shop owners have been complaining of a drop in business over the past few months… when customers come, there is just no place to park,” he said, adding that APAC had submitted a memorandum to Petaling Jaya mayor Mohamad Roslan Sakiman, on the issue.

Citing an example, Tung said on March 23, nearly 50 cars with MBPJ stickers were parked around PJ New Town and “none of them paid parking fees”.

“It is a daily occurrence. All these cars are parked in public parking lots and none of them had any parking coupons on the front dashboards to indicate that parking fees had been paid.

“Fifty free parkings per day means MBPJ is losing at least RM50,000 a year in revenue from these lots,” he said.

‘Special privilege’

While stressing that he was not against MBPJ personnel using public parking lots, he, however, questioned why they were allowed the “special privilege” of free parking.

He said it was their understanding that the “Kakitangan MBPJ” blue stickers do not exempt the owners of the vehicles from paying.

“It looks like MBPJ is turning a blind eye to this impropriety since its personnel’s vehicles are not issued with summons,” he told FMT.

PJ residents told FMT the situation was not perculiar to PJ new town and in fact occurred in all the Petaling Jaya areas.

“It looks like MPJB owned the whole of PJ. They’re like the mafia controlling the city.

“If any of the shopowners made a complaint, he will definitely be ‘flooded’ with summons,” said a resident.

Tung meanwhile is hoping that the mayor will step in and resolve the issue quickly and uphold its mission of serving the Petaling Jaya ratepayers fairly.

ARTICLE 2: Also from "freemalaysiatoday.com".

http://www.freemalaysiatoday.com/2011/06/29/is-mbpj-above-the-law/

Is MBPJ above the law?

June 29, 2011

FMT LETTER
From R Ganesh, via e-mail

I was shocked today when I parked my car in Petaling Jaya as I was summoned and a MBPJ vehicle beside mine was not despite the MBPJ vehicle not displaying a parking coupon.

I had just parked my car and as I was walking towards the machine to obtain my parking coupon when a lady officer, on a motorbike, summoned my car for not displaying a parking coupon.

By the time I came back to the car, she had summoned my car and several other cars in the row except the MBPJ vehicle. The MBPJ vehicle was taking a whole parking bay for itself.

I entered the restaurant in front where the vehicle was parked and to my surprise, I saw two MBPJ officers in uniform enjoying their breakfast. It was their vehicle parked outside.

I went out again and asked the lady officer why the double standard and how come most of the vehicles parked there were summoned except the MBPJ vehilce.

She said the MBPJ vehicle was above the law and she was instructed not to issue any summons on MBPJ vehicles. I even informed her that the officers were eating inside.

I can fully understand if the vehicle was on official business. But here, the officers were eating in a restaurant. Later, when the officers finished eating, I appoached them to verify that it was their vehicle parked.
I fully support if a government vehicle was on official business, they should be exempt from summons to facilitate the workings of the government, but in this case, it was otherwise.
I was truly surprised. The lady officer who summoned my car was so observant it was a government vehicle and not summon it but she was not observant enough to notice I was walking towards the parking machine to obtain my parking coupon.

I cannot understand how government vehicles can be above the law, especially when the vehicle is used for non official business like eating.

This is a loss of revenue to the Selangor government. Not only the Selangor government loses revenue from parking coupons, it loses revenue from summonses as well.

In this case, my summons was RM100. If this double standard is allowed, the Selangor government loses millions per annum, money useful for the development of the state.

I hope the MBPJ president can clarify why a MBPJ vehicle is not summoned despite it being parked in a parking bay for non official business.

I hope Tan Sri Khalid also can clarify the law with regards to the above matter. I have evidence in support of my grieviance should there be a need.

END OF ARTICLE!

Also, I noticed they target "Chinese majority" areas only. Places like SS2, Sunway Mas, Dataran Prima, Damansara Uptown, Damansara Jaya, Section 16, Paramount. They WILL NEVER Summon Muslim Triple parking along Mosques causing Traffic Jams. Eg. Section 14, Jalan Universiti, Damansara Utama mosque etc... This is Blatant DOUBLE STANDARDS!

SOMETHING NEEDS TO BE DONE!!! After seeing this photos and articles, will you still PAY your MBPJ summonses? I for sure will IGNORE!!!

Budget 2012 Highlights

October 07, 2011 19:36 PM

2012 Budget Highlights

(Highlighted in BLUE is Automotive industry related issues)

(Highlights in RED is MY OPINION!)

KUALA LUMPUR: Highlights of Budget 2012 tabled by Prime Minister Datuk Seri Najib Tun Razak in Parliament Friday.
- Last year our FDI growth was the strongest in Asia and in the first 6 months of this year have already reached RM21.2bil
- In 2012, private investment is forecast to climb 15.9%, supported by foreign and domestic investment
- GDP in the first 6 months of 2011 was 4.4%, driven by strong domestic consumption
- In 2011, the economy is forecast to grow by 5-5.5%
- Private and public investment are forecast to increase by 15.9% and 7%, supported by foreign investment, the ETP and 10MP
- In 2012, the service sector is expected to grow 6.5%, the construction sector 7% and GDP is forecast to be between 5 and 6%
- Budget 2012 allocates RM232.8bil for Government plans, including RM181.6bil for management and RM51.2bil for development (181.6billion for Management!!!)
- RM29.8bil has been allocated for investment in infrastructure, industrial and rural development
- RM13.6bil has been allocated for the social sector, including education and training, welfare, housing and community development
- Total revenue for 2012 is forecast to increase 1.9% to RM186.9bil and the deficit to decrease to 4.7% of GDP from 5.4% in 2011
- The theme for Budget 2012 is “National Transformation Policy: Welfare for the Rakyat, Well-Being of the Nation” (We'll see)
- We will focus on accelerating investment and further liberalise 17 services sub-sectors, in places enabling 100% foreign equity.

- RP2 will be implemented in 2012, and it will be allocated RM98.4bil, to be split evenly between 2012 & 2013

- RP2 main projects will include the East Coast Highway from Jabor to Terengganu and road upgrades from Kota Marudu to Ranau
- RM18bil of the RM20bil PPP Facilitation Fund will be used for high impact projects, with RM2 billion for bumiputera entrepreneurs
- In 2012, the Government will allocate RM978mil to accelerate the development in five regional corridors
- The Treasury Management Centre will be established and offer incentives to develop M'sia as a competitive financial centre

- We will develop the Kuala Lumpur International Financial District, with incentives including income tax exemptions for firms
- Income tax exemptions for non-ringgit sukuk issuance and transactions will be extended for another 3 years
- To promote the development of Exchange Traded Funds products I-VCAP will provide RM200mil for Shariah-compliant ETFs
- Felda GVH will be listed on Bursa Malaysia by mid-2012 to raise funds for the company to become a global conglomerate. Felda settlers are expected to receive a windfall, and the amount will be announced before listing
- A RM2bil shariah-compliant SME Financing Fund managed by selected Islamic banks will be established in 2012
- A RM100mil SME Revitalisation Fund offering loans up to a maximum of RM1mil for entrepreneurs will be available from Jan 2012

- Full exemption of import duty and excise duty on hybrid cars and electric cars will continue to be given until 2013

- To promote tourism, the Langkawi Five Year Tourism Development Master Plan will be launched with an allocation of RM420mil

- The real property gains tax will be reviewed so it doesn't jeopardise the ability of low- and middle-income groups to buy homes

- The Malaysia Healthcare Travel Council will be privatised to promote and develop Malaysia as a healthcare destination
- Budget focuses on developing human capital, creativity and innovation and 2012 will be the National Innovation Movement year
- The Govt has allocated RM100mil promote innovation including the 1Malaysia Award (C1PTA) for innovative student inventions
- To enable SMEs to commercialise research products a Commercialisation Innovation Fund totalling RM500mil will be established
- RM50.2bil will be allocated to the education sector so that it can continue to develop talented, creative and innovative people (WOW! RM50.2billion!!!)
- RM1bil will be provided through a special fund for the construction, improvement and maintenance of schools
- We will abolish payments for primary and secondary education, making these free for the first time in our history
- Private schools registered with the Education Ministry will be given incentives including an Investment Tax Allowance
- The Govt will give tax exemption for contributions to educational institutions and all places of worship
- To encourage private sector human capital development incentives including a double deduction on scholarships will be offered
- Budget 2012 introduces a Rural Transformation Programme, so that rural areas can attract private investment and create employment

- RM5bil to develop rural infrastructure, including RM1.8bil to the Rural Road Programme & Village-Link Road Project

- RM500mil to expand the programme to supply clean water to the rural community in Sabah
- RM400mil to upgrade the water supply infrastructure in selected Felda areas
- To provide greater access to bank services for the rural population, Bank Simpanan Nasional will appoint agents in rural areas
- RM90mil for the Orang Asli for basic necessities, including the expansion of the clean water supply project. For the Orang Asli affected by the landslides at Sungai Ruil, RM20mil is provided for their relocation to new homes
- 600,000 Govt pensioners will benefit from an additional annual pension increment of 2%
- Civil servants get pay rise between RM80 to RM320
- Govt will extend the compulsory retirement age from 58 to 60 years old to optimise civil servants' contribution
- Civil servants will be offered tuition fee assistance for part-time studies, including 5,000 masters and 500 doctoral scholarships
- A special programme will be introduced for 175,000 army personnel who are not eligible for pensions
- RM3,000 will be given to ex-members of the special constable and auxiliary police as well as widows and widowers
- The Govt is mindful of the plight of the rakyat due to rising food prices and will take measures to address this
- The National Agro-Food Policy 2011-2020 will be launched and RM1.1bil allocated for the development of the agriculture sector
- In the spirit of “People First,” all subsidies, incentives and assistance totalling RM33.2bil will be continued
- 500,000 will benefit from KAR1SMA, which provides assistance to poor senior citizens and children and disabled people
- My First Home Scheme will be expanded to increase the limit of house prices from a maximum of RM220,000 to RM400,000
- Govt will identify areas in the vicinity of MRT, LRT and other public transport to be developed by PR1MA
- Govt will continue to implement the Program Perumahan Rakyat by building 75,000 units of affordable houses
- Govt will establish the Special Housing Fund for Fishermen to build and refurbish houses
- Healthcare will be allocated RM15bil operating expenditure and RM1.8bil development expenditure (Another potential leakage)
- Hospitals will be upgraded and constructed as well 81 rural health clinics upgraded and 50 new 1Malaysia clinics launched
- Hospital Kuala Lumpur - the oldest in Malaysia - will be upgraded to be the country's premier hospital
- Skim Amanah Rakyat (SARA) 1Malaysia will benefit 100,000 households with income below RM3,000 per month

- To assist taxi owners facing increased operating costs, measures will be introduced including tax exemptions on taxi purchases

- The National Legal Aid Foundation will ensure that every individual who is charged in court will be given free legal aid
- To assist the homeless, the Govt established a social assistance centre known as Anjung Singgah
- A training allocation of RM10mil will be provided for women to develop leadership and managerial skills
- To prevent cervical cancer, the Government will provide free Human Papilloma Virus immunisation nationwide
- MyCreative Venture Capital with an initial fund of RM200mil to be established
- RM15mil will be allocated to build 150 futsal courts to achieve the “One Court for One Mukim” target (This is insane.  RM100,000 per futsal court.  Wonder which Crony get this project?)
- To ensure the welfare of retirees measures including a tax relief on Private Retirement Schemes contributions are introduced
- Senior citizens aged 60 years & above will be exempted from outpatient registration fees in Govt hospitals & health clinics
- One-off assistance of RM500 to households with a monthly income of RM3,000 and below will be provided
- For those in private sector earning RM5000 and below, employers' EPF contribution will increase from 12% to 13%
- Book voucher worth RM200 will be given to Malaysian students in all private and public institutions of higher learning
- Civil servants will be given an additional bonus of half-month salary and pensioners RM500.

END OF SOURCE... 

For more info about this "BIASED" Budget:  Surf to:

2012 Budget Business Highlights:
http://www.bernama.com/bernama/v5/newsbusiness.php?id=618522

Why BIASED?  Here's my highlight:

* Tax deduction on expenses incurred for sukuk wakala to be given for a 3-year period from 2012. (WHAT IS SUKUK WAKALA? Islamic Bonds - thanks Google)

* Income tax exemption for non-ringgit sukuk issuance and transaction extended for another 3 years until 2014.

* Valuecap Sdn Bhd to provide RM200 million as seed monies for syariah-compliant Exchange Traded Funds

* Felda Global Ventures Holding to be listed on Bursa Malaysia by mid-2012 to raise funds and emerge as a global conglomerate
* A syariah-compliant SME Financing Fund totalling RM2 billion to be managed by selected Islamic banks by 2012

* Syariah-compliant Commercialisation Innovation Fund totalling RM500 million to be set up

* RM200 million allocated for the development of Bumiputera entrepreneurs and contractors through the Ministry of Rural and Regional Development

* Government proposes allocation for TEKUN to be increased to RM300 million

* Amanah Ikhtiar Malaysia will provide RM2.1 billion for micro financing to entrepreneurs, particularly for women. From this, RM100 million will be for Malaysian Indian entrepreneurs and another RM100 million for Chinese entrepreneurs (See.  >90% allocated to Bumis. How Unfair)

THAT"S ALL FOLKS! Thanks for having the time and patience to read this blog entry.

Govt reviewing National Automotive Policy

Friday, September 23, 2011

Govt reviewing National Automotive Policy
Friday, September 23, 2011

GURUN: The Government is reviewing the National Automotive Policy (NAP) to meet the needs of the customers and industry players, locally and overseas.

Deputy Minister of International Trade and Industry Datuk Mukhriz Mahathir said the Government was talking with industry players to obtain feedback on how to create a better environment to boost the growth of the industry.

"The industry is very important and it has recorded high earnings for the country.

"I'm confident that Budget 2012 will give more emphasis to the sector considering that it is contributing to the economic growth apart from creating high-income jobs for Malaysians."

Mukhriz said this to reporters after Naza Automotive Manufacturing's celebration of the production of its 150,000th unit here Thursday.

He said the local car sector has grown tremendously compared to the neighbouring countries in which Malaysia is not only an assembler but also a manufacturer.
 -Bernama

Govt to revise Hire Purchase Act

SOURCE

 PETALING JAYA: The Government has agreed to revise the recently amended Hire Purchase Act 1967 (HPA) following the brouhaha it created since its implementation barely two months earlier.

Following a meeting with the Domestic Trade, Cooperatives and Consumerism Ministry yesterday, the Malaysian Automotive Association (MAA) said the bulk of the amendments that were made to the HPA would be revised.

“The meeting went well. Most of the MAA’s requests were accommodated,” its president Datuk Aishah Ahmad told StarBiz when contacted yesterday.

“The changes will now make it easier for registrations and will take effect immediately. The Government will issue a circular on the changes next week,” she said.

The MAA earlier this month said local automotive players were not consulted over the amendments to the HPA which took effect on June 15.

Since its implementation, automotive players had been complaining that the Act had created confusion and delayed the car-buying process.

Aishah clarified that the new revision by the Government did not mean that the HPA would revert to its pre-June 15 amendment status.

“Some clauses will be amended while others will remain. Simply put, it makes car registrations easier.”

Among the contended issues when the amended HPA was implemented last month was the 1% maximum booking fee (based on the total selling price) which required car sellers to refund customers 90% of the booking fee if the deal were to fall through.

This meant that car sellers or dealers could not accept booking fees before the car buyer is served with a Second Schedule notice.

The Second Schedule notice can only be completed and served, in practice, on the car buyer usually after the hire-purchase loan application is approved.

The remaining 9% downpayment on the car can only be paid when the hire-purchase agreement has been prepared, with details such as the car’s chassis number included.

This meant the hire-purchase agreement can only be prepared after the actual car unit has been allocated to the dealership.

Auto players unhappy with Hire-Purchase Act

Auto players unhappy with Amended Hire-purchase Act

Auto dealers are doubtful whether the targeted 2.1 per cent increase in total vehicles sales to 618,000 units this year can be achieved, no thanks to the amended Hire-Purchase Act 1967, which although aimed at protecting the rights of consumers, was dampening bookings.

Several auto companies have complained that their daily bookings mainly for cars had declined by an average of 20-30 per cent since the amended Act came into effect on June 15.

Local automotive players, while appreciating the amended Act which upheld the rights and interest of consumers, are already feeling the pinch of flat sales which they expect will continue for the next few months due to new requirements under the Act.

At least three auto industry players Proton, UMW Toyota and Edaran Tan Chong, with a combined market share exceeding 50 per cent of the total industry volume (TIV), said they might revise the company's initial sales targets.

The amended Act, which came into effect a month ago, has resulted in cash flow problems for dealers, as the maximum booking fee of only one per cent of the total selling price of the car imposed on buyers, was too small compared with the previous requirement of 10 per cent.

To make matters worst, if the deal falls through, the buyer gets back 90 per cent of the booking fee, leaving very little for the dealer.

The Executive Director of Edaran Tan Chong Motor Sdn Bhd Datuk Ang Bon Beng said customers can change their mind to purchase a car even at the eleventh hour in view of the low booking fee.

In other words, there was no commitment to the deal, he said, adding that the burden of this uncommitted relationship has to be borne by car dealers or the principals of automotive companies.

Besides, customers only need to sign the purchase agreement when the car is produced and shown to the customer and if the customer opts not to buy the car, dealers again tend to lose out.

If the cars are not sold, then it causes disruptions to the supply chain as orders were already made for the cars.

As a result, car dealers were now recording a 20-30 per cent decline in bookings per day owing to the longer process required to get a car under the amended Act as buyers now have to deal directly with the bank which means increased documentation and processes.

Previously, a dealer would be able to handle the entire documentation and buying process of a vehicle. "We (Tan Chong) used to record about 200 bookings per day, but now it has dwindled to about 100 bookings only," Ang said.

Ismet

Moreover, due to the low booking fee, car dealers could not distinguish between genuine and phantom buyers, as many opted to switch to other cars at the last minute.

Dealers also complained a buyer could place phantom bookings at several different car dealerships without paying booking fees, resulting in a waste of loan application resources and inefficiencies for banks and car dealers.

President of UMW Toyota Motor Sdn Bhd, Ismet Suki, while concurring that the intention of the government to ensure consumers were not cheated and misled was noble and accepted by all industry players, however, felt there were weaknesses.

"The act is flipped, from the automotive perspective, as many segments are disrupted, namely manufacturing, production and the (vehicle) ordering system," he said.

Ismet said the longer documentation and paperwork process between banks, car dealers and customers have actually slowed down the delivery system as the process of finalising a vehicle purchase agreement took an extra 3-4 days.

The manufacturer and marketer of Toyota marques as well as the distributor of Lexus-brand vehicles also said that the main issue now was not selling the cars, but taking the risk of producing cars according to the order bank, without knowing whether the orders were genuine or would be met.

Proton Edar Sdn Bhd General Manager for Marketing Sidik Abdul Hamid said as far as the national car maker was concerned, the reaction to the amended Act from consumers was positive.

However, he said, the company was looking at revising downwards Proton's initial sales target of 173,000 cars as the number one automotive player has registered a 30 per cent drop in bookings since June 15.

Against such problems faced by car sellers, the government had last month promised to resolve their grouses over the implementation of the Act.

 -Bernama 

Related: 

Government open to reviewing act

Ministry to meet car industry reps on HP Act

The Star: Friday, June 24, 2011

SOURCE: 

KUALA LUMPUR: The Domestic Trade, Cooperatives and Consumerism Ministry will be meeting financial institutions and used car industry representatives to discuss issues on vehicle sales, resulting from the recently amended Hire-Purchase Act 1967.

Minister Datuk Seri Ismail Sabri Yaakob said he had instructed the ministry's legal and enforcement departments to do so.

Ismail

Regarding complaints of a slowdown in car sales since the amended Act took effect on June 15, Ismail said, “We will need to look at the causes of the problem.”

He reiterated that the Act was amended to protect the interests of consumers.

“Of course, with the amended Act, the documentation process (by financial institutions and vehicle dealerships) is more troublesome and takes more time,” Ismail said yesterday after officiating at a function concerning the Government's Tukar (transform) initiative, aimed at helping traditional sundry shops stay competitive.

To recap, car marque franchise holders and dealers contacted by StarBiz recently said they were worried about the possibility of trickling cashflow, a rise in booking cancellations and longer lead-time for completion of sales resulting from the amended Act.

Malaysian Automotive Association president Datuk Aishah Ahmad said on Wednesday that the amended Act had definitely impacted car sales and there were “teething” problems in the vehicle retail trade.

The Proton Edar Dealers Association Malaysia and Federation of Motor and Credit Companies Association of Malaysia have urged the Government to defer and review the amendments to the Act.

The Star Business, Wednesday, June 22, 2011


SOURCE:

Wednesday June 22, 2011

Car sales impacted by amended Hire-Purchase Act

By THOMAS HUONG and EUGENE MAHALINGAM
starbiz@thestar.com.my 

PETALING JAYA: Worried about the possibility of trickling cashflow, a rise in booking cancellations and longer leadtime for completion of sales, many stakeholders in the automotive sector say the recent amendments to the Hire-Purchase Act 1967 (HPA) will hurt the car retail trade. Already, there are complaints of a slowdown in sales.

While some car marque franchise holders and dealers said they were supportive of the amendments, which aim to protect vehicle buyers from losing their booking fees and deposits paid to unscrupulous sales advisors and car dealers, among other benefits, many automotive stakeholders have described the amended Act as “confusing” and “troublesome.”

One car dealership's general manager said the situation was “unbelievable” and the amended Act overly protected consumers to the detriment of car retailers.

The Proton Edar Dealers Association Malaysia (PEDA) and Federation of Motor and Credit Companies Association of Malaysia have urged the Government to defer and review the amendments to the Act.

Ready to roll: A new car undergoing inspection before rolling out. The recent amendments to the Hire-Purchase Act may result in car buyers placing ‘phantom bookings.’

 

PEDA president Armin Baniaz Pahamin claimed that Proton car sales had dropped by 50% since last week. Another car dealership's general manager claimed that the sales of a Japanese car marque had also dipped significantly.

“Normally, the Japanese principal allocates between 150 and 200 cars to its dealers each week. In the last few days, the allocation dropped to only 10 cars. This is because until we have firm orders (meaning booking fees), we will not order the cars from the principal,” he claimed.
Under the amendments, effective June 15, all used vehicles for sale will undergo Puspakom's 18-point inspection to ensure their roadworthiness.

Another issue of contention was the 1% maximum booking fee (based on the total selling price) mandated by the amended Act, which requires car sellers to refund customers 90% of the booking fee if the deal falls through.

Armin pointed out that unlike in the past, presently car sellers or dealers could not accept booking fees before the car buyer was served with a Second Schedule notice.

“The Second Schedule notice can only be completed and served, in practise, usually after the hire purchase loan application is approved.,” he said yesterday. The remaining 9% downpayment on the car can only be paid when the hire purchase agreement has been prepared, with details such as the car's chassis number included.

This means the hire purchase agreement can only be prepared after the actual car unit has been allocated to the dealership.

“Now, with the amended Act, a car buyer can place phantom bookings' at several different car dealerships without paying booking fees. This will result in a waste of loan application resources and inefficiencies for banks and car dealers,” said Armin.

He said car buyers would have to pay more visits to car dealers or banks to sign documents.
With the amended Act, car dealers would face cashflow problems as they would lack the booking fees and downpayments as working capital to pay for the cars ordered from their principals.

Armin claimed that the Government did not consult stakeholders before implementing the amended Act.
Meanwhile, car dealers and marque franchise holders have expressed unhappiness over the issue and said the car buying process now involved more paperwork.

“We are studying the implications on our current vehicle-promotion packages,” said an industry source.
One car dealership manager in Alor Setar said the amended Act made it tough for dealers to offer “zero downpayment” or “full loan” packages.

Perusahaan Otomobil Kedua Sdn Bhd managing director Datuk Aminar Rashid Salleh said while the company supported the amended Act, automakers that sold cars in high volumes might see sales impacted.
“We may not be able to efficiently register the vehicles on time for our customers, especially during the month-end rush.

“This is due to the longer process flow that requires detailed paperwork between the banks, Perodua and our customers.”

RELATED ARTICLE:

http://star-motoring.com/News/2011/Amended-Act-expected-to-hurt-car-sales.aspx

RON97 price dropped by 10 sen to RM2.80/L...

Effective 12am Today (Thursday) 16 June 2011...

For the first time since RON97 was put on a ‘controlled market float’ in July last year, the price of the higher octane fuel has been reduced by 10 sen from RM2.90 per liter to RM2.80 per liter. The last change was on the 5th of May, where it was hiked 20 sen. The ‘mainstream’ RON95 fuel remains at RM1.90 per liter, while both petroleum diesel and B5 biodiesel (currently only available in Putrajaya) are sold at RM1.80 per liter.

JEFF LIM'S OPINION:  Huh!  Only 10 cents?  For crying out loud, What's the point?  

Motorists to bear cost of testing vehicles

The Star, Wednesday, June 15, 2011

Below: Khoo

PETALING JAYA: Car owners, not car dealers, will bear the costs of Puspakom’s Transfer of Ownership (B5) and Hire-Purchase (B7) inspections, the Federation of Motor and Credit Companies Associations of Malaysia (FMCCAM) said.

Secretary-general Khoo Kah Jin said motorists wanting to sell theirvehicles to used car dealers have to pay for the B5 and B7 inspections first.

“We will evaluate the car according to Puspakom’s inspection results,” he told The Star yesterday.   However, he said the federation remained totally against the B7 inspection costing RM60 which is to be enforced from today, deeming it “an unnecessary cost.”

“The four-point B5 inspection is sufficient to test a vehicle’s roadworthiness. Sellers can always go to a trusted mechanic for additional free professional advice,” he said.

On Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob’s statement last week that used motorcycles would be exempted from the B7 test due to the small number involved, Khoo questioned why this was the case if safety was the main issue.

Meanwhile, FMCCAM and Gerakan Youth will submit a memorandum to the Prime Minister’s Department and the ministry today requesting to delay the implementation of the B7 inspection.

According to the amended Hire-Purchase Act, motorists wanting to sell their vehicles need to send the cars for a comprehensive 18-point inspection by Puspakom before entering into a hire-purchase agreement.

The inspection will include computerised testing for smoke emission, brakes, side-slip and suspension.
 

Related

» Puspakom readies for influx with more inspection lanes

Foreign vehicles to be barred from filling up on RON95 petrol and NGV

 Tuesday, June 14, 2011 9:05 PM

KUALA LUMPUR: RON95 petrol and NGV fuel will be banned from being sold to owners of foreign-registered vehicles from tomorrow, the Ministry of Domestic Trade, Cooperatives and Consumerism announced Tuesday.

RON95 petrol would however be allowed to be sold to those having foreign-registered motorcycles as an exception.

Following the move, the requirement to produce Mykad by Malaysians using foreign-registered vehicles for buying RON95 petrol at all petrol stations throughout the country had been withdrawn, the ministry said in a statement here.

On Aug 1 last year, a directive to ban sales of RON95 petrol to foreign-registered vehicles nationwide was imposed with the exception given to Malaysians who could produce the Mykad for verification.

The ministry in the statement clarified that the government had received feedback of leakages due to abuse of of the Mykad for purchasing RON95 petrol.

According to the ministry, petrol station operators at border areas had also complained of difficulties in controlling and ensuring the directive on the petrol ban was fully complied with.

"On this issue, the government is of the view that the ban on all foreign-registered vehicles from buying RON95 petrol and the withdrawal of the condition that allowed purchase of RON95 petrol on producing the Mykad throughout the country with the exception of motorcycles, is reasonable," the ministry said.

The ministry clarified that the ban also covered NGV fuel following the discovery that 311,000 litres of NGV fuel were sold to foreign registered vehicles each year.

"At the rate of the current subsidy, the NGV fuel subsidy enjoyed by foreigners amounted to RM360,000 each year," the statement added.
 -Bernama

Malaysian Petrol price vs...

FOOD FOR THOUGHT!

Malaysia, Petrol : RM 2.90
Malaysia pengeluar ke-27 di dunia

Qatar, Petrol : RM 0.75
Qatar pengeluar ke-22 di dunia 

Oman, Petrol : RM1.00
.........Oman pengeluar ke-28 di dunia 

Egypt @ Mesir, Petrol : RM 1.06
Egypt pengeluar ke-29 di dunia 

Iran, Petrol : RM 0.35
Iran pengeluar ke-8 di dunia
 

Terima Kasih Muhyidin~! RAKYAT DIDAHULUKAN
Tanhiah Najib Razak
Kerana berjaya memperbodohkan rakyat yang dah semakin cerdik...

Fwd: Car Prices in M'sia

Fwd: Car Prices in Malaysia




This is a good example of how BN is helping the ordinary Malay population. If i was a Malay i would say no thanks, i don't need your help.

I know you are all aware of the reasons why our car prices are artificially jacked up. This is just another reminder for you to resend to as many as possible to wake up as many as possible. This artificial price can't last forever or else Malaysia's economy will collapse! So stop buying new car and vote to change the corrupted  govt......

 
Toyota Camry 2.4L for RM69,396.00 (and not RM170,000.00)
 
Toyota Altis for RM46,000 (and not RM112,000.00)
 
Honda Jazz for RM36,000.00 (and not RM108,000)
 
Want more?
 
Read the following forwarded article.......by Syed Akbar Ali.  
And know the actual prices of your dream car.
 
Car Prices In Malaysia
Digest this article, after that, you may need to vomit. What is the Malaysian Govt doing all these while. Ripping off our Rakyat for the last 30 yrs with APs designed to benefit a few  well connected Bumis, the UMNO/BN have robbed millions of citizens in this fiasco, under the pretext of protecting our local industry. The Govt have forgotten we Malays are the largest customers in the country. What is the NEP policy doing ?? Ripping off the Malays (which forms 65% of the consumer base) to benefit a few UMNO politicians !!!    
BMW 535i sells for RM178,000 in the US
In the United States of America (a developed country which we are also aspiring to become by the year 2020) a 2009 model BMW 535i Sedan is selling for about USD50,367.00. This is only RM178,000 - about the price of a Toyota Camry 2..4L here in Malaysia . The same BMW sells in Malaysia for about RM530,000.
BMW 328i sells for RM155,000 in the US

The 2009 model BMW 328i 2 door Convertible sells for USD44,014 or RM155,369.00 in the US In Malaysia the same car sells for over
RM460,000. This is an untenable situation.
Audi A4 2.0T Cabriolet Convertible sells for RM142,000 in the US

The 2009 model Audi A4 2 Door 2.0T Cabriolet Convertible sells in the US for USD40,328.00 or RM142,357. In Malaysia the same car would sell for about RM265,000.
VW GTI 2.0T sells for RM85,000 in the US

In the US the 2009 model Volkswagen GTI 2.0T sells for USD 24,039 or RM85,000 only. In China the same car will cost around RM60,000. Over here the same VW car sells for about RM200,000.

And the 2010 model Toyota Camry 2.4L sells in the US for USD 19,659...00 or RM69,396 In Malaysia the 2008 Toyota Camry 2.4L sells for RM170,000. Toyota Camry 2.4L, 2010 model. RM69,000 in the US
Car prices in Malaysia are about three times higher than the prices in the United States . We are a developing nation. Our land and labour costs are so much cheaper than the US . Why are our cars so expensive? It does not make any sense. Tak masuk akal.
Then here are some car prices from our neighbour Indonesia .
The Toyota Altis sells in Indonesia for about RM46,000. The same car sells here for around RM 112,000. Again we are three times more expensive than Indonesia
The Honda Jazz sells here for RM108,000.. In Indonesia the Jazz sells for RM 36,000. Three times more expensive.

We are paying ridiculously high prices (and actually impoverishing the Malays - who are the largest buyers of cars in Malaysia ) to support an out of date, out of touch with reality motor car policy.
We are paying the highest car prices in the world to support the Proton and other locally made cars as well as support a mind boggling AP policy which only benefits a relatively few rich Malays. A disproportionately large number of Malays and other Malaysians are being impoverished to subsidise the wealth of a few inefficient rich.

26 million Malaysians have to pay three times more for their cars just to support Proton and 120,000 people who are directly and indirectly involved in the motor sector in Malaysia and the AP holders. That is a ratio of 216:1.

This ratio of 216:1 is too skewed. 26.0 million happier people can contribute many more votes than 120,000 members of an inefficient motor industry.. 26 million unhappy people can change a Government. (The maths is not really difficult here)

And this outdated policy is impoverishing the Malays more than anyone else.
Here is some news from our DPM Tan Sri Muhyudin Yassin about our car policy. This is truncated:

Muhyiddin assures govt support for automotive parts and component sector

1. KUALA LUMPUR, May 26 - The deputy prime minister said special focus will be given to "facilitate and encourage" the development of the automotive parts and component sector despite the current global and regional economic downturn.

2. "Under the CEPT and Asean Trade in Goods Agreements, Malaysia has agreed to eliminate import duties on all products in the Normal Track on January 1, 2010. This includes motor vehicles, auto parts and components," he said.

3. He pointed out that the motor vehicle sub sector in Malaysia will not be directly impacted because of its heavy dependence on the domestic market.

4. "The Malaysian government recognises the contribution of the domestic automotive industry towards the development of the country."

Para 2 sounds promising but then Para 3 and 4 basically says that the Malaysian motor car industry will continue to be protected. This means we will continue paying the highest car prices in the world for automobiles.

Cuba kita kira : kalau kereta Honda Jazz di jual dengan harga yang sebenarnya (lebih kurang RM36,000 saja) dan bukan pada harga sekarang (RM108,000) maksudnya bayaran bulanan pembeli kereta akan jadi kurang, mungkin sepertiga sahaja daripada bayaran bulanan sekarang.

Jika sekarang orang bayar RM1,500 sebulan untuk beli Honda Jazz, kalau harga kereta lebih menepati harga pasaran dunia, orang kita perlu bayar sekitar RM500 saja sebulan.

Maksudnya tanpa Kerajaan perlu membuat apa pun (merangsang ekonomi, belanja berpuluh billion Ringgit duit rakyat untuk stimulus dan sebagainya) setiap rakyat Malaysia yang membeli kereta yang seharga dengan Honda Jazz akan dapat menjimatkan sehingga RM1,000 sebulan daripada kos sara hidup bulanannya.

This is like giving the car buyer an RM1000 pay rise without incurring any extra costs for the taxpayer, the Government or the economy. It will greatly reduce the cost of living in Malaysia and spur greater economic growth too.

Tapi sekarang, yang menjadi mangsa dulu dan yang menjadi miskin dulu orang Melayu juga. Orang Melayu yang paling ramai sekali menjadi pembeli kereta dalam negara kita. Orang Melayu kebanyakannya makan gaji - tiap bulan dapat gaji tetap. Bila harga kereta naik gila, yang menjadi miskin di saf depan sekali adalah orang Melayu juga.
In absolute numbers, the Malays are suffering the most because they are the most in number among the fixed income people who also buy cars.
Some folks said the other day that Proton has 150 major component suppliers, dealers, distributors and about 500 other parts suppliers too. Of the 150 major component suppliers, about 15 of them are listed companies. In total they employ about 120,000 people. The Proton supply chain is a mix of bumiputras and non bumiputras. But here is a sad fact : none of them are operating at their level best efficiency.
Our motor car policy is forcing Malaysians to subsidise Proton so that Proton can sustain major inefficiencies in the Malaysian economy.. This is not a good thing at all.

We have to unwind this situation. Set a target of 18 months from now to unwind all protection for our motor industry. Remove the impoverishing AP policy also in 18 months. Let Malaysian car prices reflect world market prices for the same makes of cars.

If a BMW 535 sells for RM178,000 in America , it should sell for a little less here in Malaysia (our rentals and salaries are cheaper). Fw: Car Prices In Malaysia

The Ministers continue making pronouncements about the car industry as though nothing has happened. I hope everyone will please wake up. The Government has a real chance of getting thrown out of office in about three years. The people will not accept inept answers anymore.

The ridiculous car prices in Malaysia is an issue that is just beginning to get more attention and publicity. It is going to become a really big issue in the near future. Be forewarned.

Posted by Syed Akbar Ali at 5:49:00 PM