Tuesday, August 25, 2009

Car Prices in Malaysia - by Syed Akbar Ali

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 !!!

 ”We cannot choose the things that will happen to us. But we can choose   the attitude we will take toward anything that happens.. Success or   failure depends on OUR attitude”   Malaysia Boleh…Buy Malaysian Products….Long Live Malaysia.. Malaysia    Ku Cemerlang…!   BMW 535i sells for RM178,000 in the USA.

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 RM450,000.

 BMW 328i sells for RM155,000 in the USA.

  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  [cL: it's  RM70k in Au]

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


  1. Thanks for loading this article.. a very true and sad situation for automobile industry in Malaysia..

    On the flip side of the coin, our public transportation is improving very slow.. with the price reduction.. more people can afford to buy cars.. don't think our roads can handle such a car flood.. we all wouldn't want to see KL, JB or Penang becoming like Jakarta and Bangkok though... sigh..

  2. yup, this is happening in our beloved 1Malaysia, feel very sad for us have to pay 300percent tax for our cars...

  3. How can we go about protesting online nationwide so that all can enjoy better and safer cars? I actually do not mind a little bit of protection to our local car industry but not at the expense of outdated engines, measly 2 air bags and missing Electronic Stability control. Let's just stop buying cars altogether until we have a new tax free National Car policy...

  4. never forget that your 308 is a budget car.

  5. yes, i totally agree with you

    however, in conjunction with opening of the var market, I THINK Malaysia should also let its oil reflect international prices

    of course, i understand that some groups will be in deep sh*t without government subsidy as their income is limited by the attribute of their jobs, namely taxi, lorry and bus drivers...

    the government should continue to offer subsidy for these groups, but stop to subsidize the oil prices of the whole country...

    in continuity of my proposal, here are the ways to make it work:

    1st, Remove oil subsidy of whole country

    2nd, Order all taxi, lorry and bus drivers (and those deemed necessary for subsidy) to collect their petrol receipts

    3rd, Let them claim their subsidy from a
    government office, they will have to present the receipts, license and proof of being a taxi/lorry/bus/whatever driver

    by proof, i mean the card we see on the dashboard of taxis that says the driver's name, the car's plate number etc. I'm sure lorry and bus driver have something similar...

    and so, the government will be able to narrow the amount of subsidizes to those who really need it, and the money saved can be used in better ways...


    these are my rants on the current state of car market in Malaysia, i really hope for improvements...

  6. how about car prices in singapore and thailand?.. these 2 are our nearest neighbours.. can anybody do the same comparison with malaysian overprice cars? tuan syed?