Malaysian Pay the Highest Car Prices in the World
If you shop for a new cars like Toyota Vios, Honda Civic etc, you would immediately notice that we are paying highest car prices in the world due to our abnormally high import duties on foreign cars.
Beside paying for higher price for car, soon we would also pay for higher Petrol price.
By 1st May 2010, Malaysians Not all Malaysians will get to enjoy subsidized petrol as it will follow the engine capacity and other factors such as socio-economy. It another word some Malaysians will pay for Petrol at Market Price.
Read more about Petrol Hike|Two Price Structures for Petrol from May 1
Car has become a necessity and no more a luxury due to the current public transport condition.
There are a lot of proposal improve urban public transport and step done to further encourage the people to use public transportation. But there are still a lot of room of improvement.
Therefore Most people have not much practical choice but to own cars!
As a result, we are face with traffic congestion and horrendous air-pollution.
Some car owners even take a nine-year loan just to pay off for a basic car.
Car also has the highest depreciation value between the first and second year and one of the biggest liability for average wage earner.
Do you know how much Tax you are paying for a foreign Car?
By comparing car price between Malaysian mainland and duty free Island of Langkawi, you can clearly see how much Car Vehicle Taxes the Government is extracting from the car buyer.
Malaysian mainland car buyer paid almost additional 38% compare those at duty free Island of Langkawi.
The Government take about RM23,000.00 in taxes for every imported car that is sold in the country. This would add to billions of ringgit.
Most of this taxes money goes to the Government in the form of taxes and duties and also to pay for the Approved Permits(AP). AP is needed to import these cars.
According to the book “Thing in Common” by Syed Akbar Ali, AP is a Useless Pieces of paper which do not add any value to the car or to the people.
They are just a method of skimming money from the people!
He also wrote these taxes are being imposed to protect outdated national car industry and to benefit a few privileged people who have access to APs to import cars.
Highly protectionist policy in the car industry should be reduce and without competition from freely imported cars, the car prices in Malaysia have rocketed sky high.
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Malaysians are Now Paying Petrol Tax
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Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad revealed today the government has stopped subsidising petrol since Nov 1 and has been effectively collecting taxes instead on petrol consumption.
Speaking to reporters in Parliament, he explained that even after the 15-sen drop today, which saw RON97 petrol dropping to RM2 per litre, and RON92 and diesel down to RM1.90, the government was no longer subsidising petrol at the pumps.
“Even if prices return to RM1.92, we will still have a bit of surplus,” he said, adding that subsidies had disappeared once the global price of oil had dipped under US$65 per barrel.
Current prices are hovering at US$55 per barrel.
As oil companies take a 19-sen cut and fuel station operators take 12 sen, it can be inferred that the cost price of RON97 petrol is currently below RM1.61 if the government can still generate income at RM1.92.
Shahrir explained that the difference between petrol pump prices and the cost plus commission for the companies and operators was being returned to the government effectively as a form of tax.
This gels with the 2009 Budget winding-up speech by Finance Minister Datuk Seri Najib Razak where he claimed a projected RM7 billion savings in fuel subsidies will be utilised to stimulate the troubled economy.
The statement was puzzling as the government had earlier said it would maintain a 30-sen fuel subsidy to keep pump prices below market prices.
Shahrir also projected that with RM21 billion budgeted for fuel subsidies in 2009 and subsidies for 2007, when prices had averaged US$65 per barrel, amounting to RM8.8 billion, savings from fuel subsidies would be far more than RM7 billion.
“If crude oil stays under US$60 per barrel, I am expecting at least RM10 billion,” he said.
He also added that subsidies for diesel and natural gas are still in place.
Shahrir, however, explained that this did not mean that the people were not being helped by the government.
“We are still giving the RM625 road tax rebate for cars and RM150 for motorbikes that goes straight into your pocket,” he said, referring to the rebate announced when RON97 shot up to RM2.70.
“So the rebate is for when the people suffered for about three months,” he said.
The Johor Baru MP had called a press conference to announce that a total cost of RM21.4 billion had been incurred by the government up to October this year due to tax exemptions and subsidies for fuel against RM16.2 billion last year.
This, however, is without tax exemption figures for October 2008.
He also said that government would consider a floor price for fuel.
from:themalaysianinsider.com/index.php/malaysia/12622-malaysians-are-now-paying-petrol-tax-
Ample time to adjust to AP system
Car manufacturers must strategise to face new chapter in its abolishment
LOCAL car manufacturers have ample time to adjust and strategise on ways to face the new chapter of the national automotive industry with the open market and abolishment of the Approved Permits (AP) system in 2015.
This is the view of economists and research analysts on the government’s decision to do away with the controversial AP system as part of its National Automotive Policy (NAP) review.
Minister of International Trade and Industy Datuk Mustapa Mohamed announced yesterday that the government will scrap the AP system for the import of completely-knocked-down (CKD) vehicles whereby open APs for used vehicles will be terminated by Dec 31, 2015, which means importation of used vehicles using the AP
permit would no longer be allowed after 2015.
“No new applications for open APs will be considered and franchise APs will be terminated by Dec 31, 2020,” he said.
Rating Agency Malaysia’s chief economist Dr Yeah Kim Leng said, “The timeframe appears to be a bit long but it will also be good for local industry players to adapt to the changes coming their way and also buy them some time to strategise before they face the changes.”
He added that local car manufacturers will have to be more competitive and improve their quality to attract more local consumers.
“They will have to be more creative in order to obtain more local consumers in the industry and thus they will have to raise their competitiveness for a long term sustainability,” he said.
Malay Mail also spoke to Amelia Arshad, a senior analyst with Inter Pacific Research who felt that it will be a long wait for consumers and the AP system should have been abolished a long time ago.
“The industry will not be affected, as many of the local manufacturers are engaged in collaboration with other foreign car manufacturing companies,” she said.
The time, she said, is right for the country to move on and make new changes that will not only benefit the industry but also the consumers.
Amelia said that under the new reviewed measure of the NAP there are some good measures such as having an establishment of a gazetted price for imported used CBU motor vehicles.
“This will help to stop the underdeclaration of imported used-cars and abuse of the AP system.” she said.
The government had earlier proposed to end APs by 2010 but the deadline was extended. Under the NAP review announced yesterday, there are 18 new policies and measures covering licencing, duties, incentives, technology and environment, safety and standards and also APs introduced under the NAP review.
New policies and measures will be effective from Jan 1, 2010.
fr:mmail.com.my/content/17323-ample-time-adjust-ap-system
Urban Public Transport Enhanced By 2012
Highlights of the Government Transformation Programme Roadmap towards improving urban public transport:
*Increasing the percentage of overall utilisation of public transport from 10 to 13 per cent in 2010.
*Raising the number of public transport users from 240,000 to 265,000 this year.
*Increasing the accessibility and communication of the overall percentage of the population residing within 400 meters of the public transport route from 63 per cent to 75 per cent.
The government’s main target is to improve the standard of public transport at the main population centres in Malaysia, beginning with increasing the use of public transport during peak hours, that is, from 7am to 9am by 25 per cent in the Klang Valley in 2012, and subsequently in Penang and Johor Baharu.
Efforts to improve urban public transport services would also be emphasised including improving reliability by focusing on punctuality of the services and subsequently reducing journey time.
In addition, the quality of the journey four users of public transport in terms of comfort and convenience would also be enhanced by ensuring that the rakyat get easy access to public transport and providing adequate transportation capacity for existing and new passengers.
Five important measures that have been identified to improve public transportation between 2009 and 2012 were coordination of the capacity of systems which had reached their limit, that is, by raising the capacity of the KTM Komuter and LRT by between 1.7 and four times.
In order to attract more people to use public transportation, the ticket and fare structure for public transport would be integrated and about 6,800 additional parking bays would be provided at 14 major rail stations. Feeder bus services to the rail stations would be improved while stations with high traffic volume would be upgraded.
fr:bernama.com/bernama/v5/newsindex.php?id=471886
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AP for state reps: Miti sec-gen explains
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Explaining about recent government decision to grant Approved Permits (AP) to assemblypersons, Ministry of International Trade and Industry secretary-general Abdul Rahman Mamat denies widespread AP abuse by MPs and vows action against any misuse.
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Costly rides
The cost of owning a car in Japan, is enough to drive one up the wall.
WITH baby Ken in the child safety seat, our two-door Nissan became inconvenient to use. The seven-year-old car had almost zero value when my husband traded it in for a new Nissan station wagon.
By the 10th year, our station wagon had many scratches, dents and had undergone several repairs. All the hubcaps went missing one by one; they had rolled off while we were on the road.
Since we wouldn’t have wanted the car to break down halfway to Narita airport, we decided to get a new car in June 2004.
For the first time, we all went along to hunt for one. When we went to a Netz Toyota car dealer’s shop, we were amazed. It had a vending machine which provided free drinks, a TV, a play corner for kids, and foosball.
The chief salesman, Mr H, immediately attended to us. We picked a seven-seater Sienta, had it installed with a GPS navigator, TV, CD player and rear-view camera monitor, and took up a two-year maintenance package.
Our shabby Nissan was worth nothing, and Mr H disposed it for us at no charge. The manager came to greet us with plenty of goodies for Ken as a token of gratitude.
The Sienta was supposed to arrive in three weeks’ time.
However, a week before that, our station wagon broke down right in our parking lot. The clutch cable had snapped as we were about to go out. So Mr H arranged for our new car to arrive in a week’s time.
When Mr H drove the Sienta to us, it was like bringing a new baby home. When Mr H’s assistant towed away our Nissan, it was as if we were witnessing a funeral.
Acquiring a car in Japan involves many procedures and incurs lots of expenses. You have to pay an acquisition tax (5% of the car’s price), an annual automobile tax, a weight tax, mandatory insurance, processing fees, official expenses for the car’s registration and verification of a parking lot, and recycling deposit.
You must show proof that you have a parking space (rented or your own) by submitting the certificate of registered parking space (shakoshomeishou) to the police who would come to inspect the space.
Rental of a parking lot depends on the owner and area. It may range from ¥10,000 to ¥20,000 (RM380 to RM760) per month.
Although Mr H handled most of the paperwork, my husband had to produce his officially registered personal inkan (seal) certificate from the city office as proof to get the documents stamped.
The insurance and car registration documents must remain in your car at all times.
All cars must undergo a compulsory safety inspection (called “shaken” in Japanese) every two years, except for new cars, for which the shaken is due on the third year of purchase.
Our car dealer’s workshop is authorised to perform the shaken. The cost of shaken depends on the engine size, condition and necessary repairs for the car. Generally, it costs between ¥100,000 and ¥200,000 (RM3,800 and RM7,600). An inspection approval sticker would then be placed on the windshield.
The shaken becomes more expensive as the car gets older, so some people change their cars in the fifth or seventh year. Cars depreciate quickly, too.
Owning a car is expensive. Petrol costs around ¥127 (RM4.80) per litre at present. Furthermore, tolls and parking fees are very high.
We had our Sienta for less than four-and-a-half years. During the half-yearly maintenance in late November 2008, Mr H suggested we switch to a bigger model, the Wish, which was on offer until the end of the month.
Considering the cost of changing four tyres, shaken for the coming fifth year, repair of a very small dent (about ¥50,000 or RM1,900) and the good price offered for our Sienta, my husband Koji contemplated trading it in.
I hesitated due to the economic downturn. “I’ll take a three-year loan. This will be our last new car before my coming retirement,” Koji promised. We made our decision at the last minute. After closing the deal, Mr H and the manager gave us appreciation gifts.
As part of the Japanese New Year celebrations, the shop holds an annual omochi (glutinous rice cake) pounding event with lucky draws and special discounts. Customers can enjoy the omochi with different toppings and sauces, and free flow of drinks. Kids have fun pounding the omochi and exchanging the flat marbles (given by the staff) for their favourite snacks.
Well, the customer is king at car dealerships, for Mr H or his staff would stand by the roadside to watch out for the traffic and give us a deep bow before we drive off.
Sarah Mori is a Malaysian married to a Japanese and has been living in Japan since 1992.
fr:thestar.com.my/lifestyle/story.asp?file=/2010/2/8/lifefocus/5591477&sec=lifefocus
Spare parts dilemma for owners of older cars
JOHOR BARU: The ban is one year away but owners of older vehicles here are in a dilemma over the National Automotive Policy (NAP), which disallows the import of used car parts.
They fear that the move will lead to more expensive parts for their vehicles, especially those that are more than 10 years old.
Medical student Joseph Fernandez, 24, said that even without the NAP ruling, it was already tough finding spare parts for his 1970 Mercedes-Benz.
He inherited the car after his father’s death, so it has sentimental value for him.
“I love the car dearly but sometimes it is a headache to find spare parts,” he said.
The NAP was announced in October last year and is set to open up the local auto sector.
Technician Shawn Dass, 22, said the high prices of new spare parts were a burden to low-income earners.
“I own a 1970 Volkswagen. Sometimes, it is more affordable to find second-hand parts for it,” he said.
Factory supervisor John Ivan said spare parts for cars beyond 10 years old were limited in the market.
Ivan, who drives a 1993 Nissan Sunny, said he had to visit several shops before he could find the spare parts.
“Sometimes, kereta potong (vehicle chop shop) dealers are a blessing because they have many used spare parts for the older vehicles,” he said.
Magazine writer Sharizan Wahib, 24, said he could easily find the parts for his 1994 Proton Iswara from kereta potong dealers.
Johor Used Car Spare-Part Dealers Association committee member Ng Keng Heng said that approximately 5,000 dealers in the country would be affected by the ruling.
“These dealers specialise in selling used and reconditioned spare parts for vehicles,” he added.
fr:thestar.com.my/news/story.asp?file=/2010/2/8/nation/5578558&sec=nation
Maximising the resale value of your car
SO, you want to sell your car. Naturally, you’ll want the best resale value your ride can offer.
However, the automobile (like nearly everything else) is already depreciating in value the moment you turn the ignition switch for the first time (unless of course, it’s a classic or collector’s item).
Some experts claim that the value of your car goes down by 65% in just five years of normal driving.
However, a vehicle’s resale value is dependent on a number of factors – the demand for that particular make and model, mileage and if it’s accident-free or otherwise.
On top of that, second-hand car dealers and banks also have their own methods of evaluating the resale value of your vehicle.
So before you slap on the “for sale” sign on the side of your vehicle, here are a few simple tips that could help maximise its resale value.
Don’t crash
Other than the age of your vehicle, knocks, dents or scratches can pummel the resale value big time.
If your car has been involved in an accident, get it fixed immediately, says Chong, a used-car dealer in Kuala Lumpur.
“An experienced used-car dealer who is evaluating the value of your car can spot the signs of an accident a mile away! If you do get that dent fix, always get it done through a reputable workshop.
“Also, don’t compromise if you need to replace any spare parts. Always use factory or original parts, as they’ll last longer and will of course give added value if you want to sell your car.
You can also command a better price if the parts are genuine.”
Chong adds that it doesn’t hurt to be honest about the accidents or repair jobs on your car with the potential buyer when you plan to sell.
“Keep all records, like receipts of the repair works that you have done to your car. If you try to be evasive, the potential buyer may think that the damage could be worse than it seems.
Sending your car for regular service will ensure it’s performing at optimum level. What’s more, it also shows that the vehicle has been well looked after by its previous owner.
Stick to the maintenance schedule
Chan, a car salesman from Kepong, says it is a good habit to keep records of maintenance schedules of your vehicle.
“You should keep receipts for all maintenance and repair work, no matter how minor. Having documents of your vehicle’s service history will be the best evidence that your car has been well maintained,” he says.
He adds that buyers are also willing to pay a higher price for vehicles with proper documented service history.
Keeping your car clean is also a sign that the car is being well maintained. “If there is a stain on the upholstery, clean it up quickly. Regular washing and waxing will also help keep your car in tip-top condition and make it more appealing to potential buyers,” says Chong.
Fix it now
If your trip odometer is no longer functioning or one of your headlights isn’t working, get it fixed as soon as possible, advises Ali, another used-car salesman in the Klang Valley.
“When there’s a problem, get it done immediately. Do not let your car slip into a state of disrepair. The more problems you need to fix, the more money you’ll need to fork out.
“Some problems, if left unattended for too long, also cost big bucks to fix. A vehicle with prompt and correct maintenance will have much better resale value,” he says.
Don’t ‘pimp it’
Shows like MTV’s “Pimp My Ride,” where ordinary cars are subjected to insane visual and performance modifications, may look spectacular on television, but in reality, adding crazy modifications to your vehicle will only depreciate its value.
“There’s a reason why a car is meant to use factory parts. Customising it and adding parts that were not designed for it in the first place could actually do more harm than good to your car.”
Vincent, who works in a vehicle after-market shop in Petaling Jaya, says any car customisation should only be attempted after thorough research.
“Speak to professionals, mechanics or even other similar vehicle owners and get their opinions first. The modification should be an enhancement and not be destructive to your vehicle.
“Super-large rims may look cool on a car but it could affect the handling and nobody wants a car that is difficult to control.”
Vincent says modifications such as an upgraded stereo system, adding a sun roof or window tints that are within regulations, can enhance a car’s resale value.
“Actor Vin Diesel looked cool in his tricked-out cars in the Fast and Furious movies, but it’s best to leave the over-the-top modifications to Hollywood.”
fr:biz.thestar.com.my/news/story.asp?file=/2010/2/13/business/5643277&sec=business
Car sales surge with better sentiment and new models
KUALA LUMPUR: Sales of automobiles in January surged 32.8% to 50,622 units with sales getting a lift from improved consumer sentiment and new models launched.
The Malaysian Automotive Association (MAA) said passenger cars accounted for the bulk of the jump in sales as 45,973 units were sold last month compared with 34,629 units in January 2009.
“Supported by an increase in production, sales volume continued its upward trend in January to reach 50,622 units which is 2,954 units or 6.2% higher compared with December 2009,’’ MAA said in a statement yesterday.
Sales of commercial vehicles rose to 4,649 units in January compared with 3,478 in the same month last year.
Analysts contacted said the jump was large but apart from the seasonal increase in January sales, the total number would have benefited from a weak base effect.
“Car sales in the first quarter of last year was low because of the economic slowdown,’’ said an auto analyst with a local brokerage.
“The January numbers were within expectations.’’
In terms of production, the industry produced 51,296 vehicles in January 2010 compared with 37,427 in the same month last year.
January’s production of passenger cars and commercial vehicles was 46,172 and 5,124 respectively.
MAA expects sales in February to be lower than January because of the seasonal short working month due to the Chinese New Year festive holidays and company closures.
fr:biz.thestar.com.my/news/story.asp?file=/2010/2/23/business/5723616&sec=business
Sales expected to continue to pick up in auto sector
KUALA LUMPUR: Companies involved in the auto business have reported strong earnings during the just concluded earnings season and expectations are that those companies will continue to perform better in view of the rise in sales and the economic growth in 2010.
Although most auto-related companies on a year-on-year basis performed better during the fourth quarter of 2009, except for UMW Holdings Bhd, analysts said not all exceeded expectations.
“Underlying trends in the sector have improved. Results of auto stocks under our coverage were largely in line,” said AmResearch analyst Hafriz Hezry.
“Those that significantly outperformed consensus were Proton (Holdings Bhd) and APM (Automotive Holdings Bhd). Though most auto manufacturers showed a quarter-on-quarter dip, this is in line with seasonality.”
Companies such as Proton and MBM Resources Bhd, which has a large stake in Perusahaan Otomobil Kedua Sdn Bhd (Perodua), managed to post higher earnings in the fourth quarter compared with the same period a year ago.
Tan Chong Motor Holdings Bhd too reported better earnings in the fourth quarter as it gained from a stronger ringgit and better sales.
“Things will look up from the first quarter onwards,” said OSK Research analyst Ahmad Maghfur Usman.
Hafriz expects earnings growth of 43% to 52% for the current financial year for the auto stocks it covers.
In terms of biggest surprises, Hafriz said that would be the increase in profit margins.
“The market may have underestimated benefits from economies of scale derived from better plant utilisation and lower discounting activities,” he said.
For the more diversified auto groups such as UMW and DRB-HICOM Bhd, their results headed at opposite direction.
For UMW, its auto businesses during the quarter held up as higher sales of cars and auto parts were recorded by the company in that segment. The company noted that Toyota and Perodua cars commanded a 45.5% share of the Malaysian market in 2009.
But the company posted lower profits during the quarter as it was dragged by some of the group’s other operating segments.
For DRB-HICOM, net profit during the quarter more than doubled from a year ago as the company saw higher contributions from its services segment. The diversified group announced a 125% rise in profit to RM103.5mil during the quarter, which was the company’s third quarter of its fiscal year.
The story of the earnings period could have belonged to the auto parts suppliers, especially APM, which posted its best ever revenue during the quarter as sales within Malaysia surged. Net profit rose about five fold to RM25.5mil from RM5.1mil.
EP Manufacturing Bhd too posted stronger profits from the introduction of new cars by Proton and Perodua. New Hoong Fatt Holdings Bhd, which makes replacement panels for cars, also saw earnings improve in the fourth quarter year-on-year despite taking a sizeable impairment charge.
Ahmad Maghfur concurred and said in general higher sales by Proton and Perodua lifted the performance of the parts suppliers.
fr:biz.thestar.com.my/news/story.asp?file=/2010/3/2/business/5774099&sec=business
Overwhelming response from foreigners on NAP
The government has received overwhelming response from foreign luxury car manufacturers seeking further clarification on the National Automotive Policy (NAP).
“We have received quite a number of delegations coming from luxury car manufacturers asking for further clarification … especially on new technology and green technology,” said International Trade and Industry Ministry (Miti) secretary-general Tan Sri Abdul Rahman Mamat.
Under the NAP which was reviewed last year, the country’s automotive industry has been further liberalised to see a more effective development of the industry.
Among the measures undertaken by the Government was to issue manufacturing licence for foreigners for selected segments without imposing any equity condition beginning this year.
This was offered for the production of luxury passenger vehicles with engine capacity of 1800cc and above, pick-up trucks and commercial vehicles, hybrid and electric vehicles, and motorcycles of 200cc and above.
“Miti and its agencies will continue to promote the industry. We have to provide the infrastructure, the human capital development to support the industry and to ensure that localisation will take place,” Abdul Rahman said.
The Government reviewed the NAP last year to ensure the long-term viability and competitiveness of the domestic automotive industry.
Abdul Rahman also called on industry to focus on research and development to promote higher value-added activities.
This will also assist the automotive part and component manufacturers to upgrade their product quality, capabilities and services as well as help increase the percentage of components sourced locally. — Bernama
The government yesterday continued to support the domestic automotive industry with the Automotive Development Fund and the Industry Adjustment Fund.
On their part, industry players need to keep abreast of developments taking place globally which is now characterised by the adoption of best practices in manufacturing and technological advancements relating to safety and care for the environment, Abdul Rahman said.
fr:biz.thestar.com.my/news/story.asp?file=/2010/3/5/business/5801198&sec=business
Mercedes-Benz unveils C 250 CGI variant
SEPANG: Mercedes-Benz Malaysia Sdn Bhd is targeting to sell between 200 and 300 units of its latest Mercedes-Benz C 250 CGI (charged gasoline injection) Avantgarde variant this year.
Its vice-president of sales and marketing for passenger cars Florian Mueller said the company had already secured some 80 bookings for the new car.
“The interest in the C 250 CGI is high as it comes with a 1.8-litre turbocharged engine that delivers the performance of a 2.5-litre car but has a comparatively lower fuel consumption,” he said at the variant’s launch at the Sepang International Circuit yesterday.
Priced at RM287,888, the C 250 CGI which is locally assembled, will be sold alongside with the older C 200 Kompressor variant which is sold at RM248,888.
At the event, Mercedes-Benz Malaysia also launched its fully imported C 300 Avantgarde Estate variant which is priced at RM396,888.
Mercedes-Benz Malaysia is aiming to sell over 4,200 cars this year, of which some 40% of the sales would be taken up by the C-Class model.
fr:biz.thestar.com.my/news/story.asp?file=/2010/3/6/business/5805691&sec=business
‘Review policy to end Approved Permits for cars’
THE Association of Malay Importers and Traders of Motor Vehicles Malaysia (Pekema), Sarawak branch, has called on the federal government to review the policy to end the Approved Permit (AP) system for vehicles in December 2015.
Its chairman Datuk Abang Khalid Abang Marzuki said the government should consider the situation of Bumiputera automotive entrepreneurs in Sabah and Sarawak, who are currently behind their counterparts in Peninsular Malaysia.
According to him, the automotive entrepreneurs in Sarawak have just started to stabilise their businesses and are trying to follow their Peninsular counterparts in expanding into other industries like hotel and property.
He said Pekema Sarawak felt that its members’ efforts to expand into other industries have become more difficult when the government announced the National Automotive Policy and its objective to end the AP system in 2015.
“The AP system has really helped to create Bumiputera entrepreneurs in the automotive business in line with its original objective. Because of this, we are calling on the government to review its decision which will cause Bumiputera entrepreneurs to suffer losses,” he said yesterday.
Pekema Sarawak has 32 members.
Abang Khalid said Bumiputera entrepreneurs holding APs have never burdened the government but contributed in the form of paying excise duties and donations through Yayasan Pekema.
He said since the APs were introduced 1980s, Malaysia has faced three economic slowdowns but none of the Bumiputra automotive entrepreneurs had approached the government for help.
“During the economic crisis, many Bumiputera automotive entrepreneurs became bankrupt and took huge loans to save their investments. On our own we continued to carry on without burdening the government.”
Pekema Sarawak also called on the government to review the RM10,000 charge for the issuance of each open AP.
“All players in the automotive industry should incur the charge, including the franchise holders, and not just the AP holders. If we want fairness, be fair to all,” Abang Khalid said.
He said the charge made up a sizeable sum in the operation cost of Bumiputera automotive entrepreneurs.
Pekema Sarawak will hold a seminar on the implications of the National Automotive Policy for Bumiputera automotive entrepreneurs next month or in April. Abang Khalid said several well-known figures connected with the local automotive industry are expected to present their working papers.
fr:btimes.com.my/Current_News/BTIMES/articles/peke/Article/