"Malaysian government cannot control price of cars" - MITI

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keshy

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keshy

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The price of cars in Malaysia may not go any lower if the government removes the various duties imposed on imported automobiles, said International Trade and Industry Deputy Minister Jacob Dungau Sagan.

He said there are various factors that are outside of the government's control in determining the price of imported cars, such as component prices and foreign exchange rates.

“Reduction of duties will not necessarily bring down the price of cars, because the price is set by the companies based on the market,” he said when replying to a question from Chong Chieng Jen (DAP-Bandar Kuching).

Jacob noted that while the government has agreed to completely remove or greatly reduce in stages the import and excise duties on imported cars in various free trade agreements (FTA) with Asean and Asian countries, it will still retain the duties on all imported vehicles for now.

“In accordance with the National Automotive Policy unveiled in 2009, the government has decided to maintain the import and excise duties. This will help the government overcome the negative impact on its income due to reduction of these duties,” he said.

chong chieng jen interview 141108 03The deputy minister's answer however did not satisfy Chong, who questioned the government's motives in retaining the import and excise duties that force inflated prices of foreign vehicles to protect local car makers.

Taking the example of the Toyota Vios, he said the Japanese car is priced between RM70,000 to RM90,000 in Malaysia, at least RM20,000 more expensive than in Thailand (from RM50,000 to RM70,000) and in China (RM45,000 to RM60,000).

“We also have to pay such a high price for local cars. In China, the locally-made Chery QQ3 is priced from RM19,000 to RM23,000 but here for a Perodua Viva we have to pay RM38,000.

“This proves that the government's protectionist policy exploits the rakyat... this does not contribute to the government's income, but to the profit of BN's cronies in Proton and Perodua,” he charged.

BN Backbenchers' Club deputy chair Bung Moktar Radin (BN-Kinabatangan) denied that BN cronies are benefitting from the duties imposed, but agreed that imported cars in Malaysia are overpriced due to the excise duty.

Though distancing himself from Chong's allegation of protectionism by the government of local car makers, he did say that there is not much else they can do but build better cars at lower prices to keep up with the rest of the world's automotive industry.

“The reason why imported cars are expensive is because the excise duty is so high, going between 300 to 350 percent (of the vehicle's base price)... To remain competitive we have no other option but to improve the quality of our cars and sell at a reasonable price,” he said when asking a supplementary question.

This article was first published on Malaysiakini.com
 

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SundayDriver

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SundayDriver

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the gov can say they wanna remove this remove that but end of the day, we as rakyat only wants lower cost for buy cars. dats all we wanna kno.
so they should stop debating who is profiting from wat and wat they can or cannot do and start finding a solution for us.

Bottom line is people wan cheaper cars. Gov get it done.
 

arturo

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arturo

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how many years aredy ar this thing been going on under the many different names? all oso end up as what?

N A T O
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^pomen_GTR^

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^pomen_GTR^

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no lah....they keep on thinking to remove the import duties (tax)..but increase back their income using other type of tax..thats why they need to keep thinking before doing it....


in other words..there's not going to be cheap at all...
 

arturo

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arturo

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yep. thats what happened the last time round also. just changed tax type. maybe this time change from excise duties to GST? or automotive duties?
 

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The price of cars in Malaysia may not go any lower if the government removes the various duties imposed on imported automobiles, said International Trade and Industry Deputy Minister Jacob Dungau Sagan.

He said there are various factors that are outside of the government's control in determining the price of imported cars, such as component prices and foreign exchange rates.

“Reduction of duties will not necessarily bring down the price of cars, because the price is set by the companies based on the market,” he said when replying to a question from Chong Chieng Jen (DAP-Bandar Kuching).

Jacob noted that while the government has agreed to completely remove or greatly reduce in stages the import and excise duties on imported cars in various free trade agreements (FTA) with Asean and Asian countries, it will still retain the duties on all imported vehicles for now.

“In accordance with the National Automotive Policy unveiled in 2009, the government has decided to maintain the import and excise duties. This will help the government overcome the negative impact on its income due to reduction of these duties,” he said.

chong chieng jen interview 141108 03The deputy minister's answer however did not satisfy Chong, who questioned the government's motives in retaining the import and excise duties that force inflated prices of foreign vehicles to protect local car makers.

Taking the example of the Toyota Vios, he said the Japanese car is priced between RM70,000 to RM90,000 in Malaysia, at least RM20,000 more expensive than in Thailand (from RM50,000 to RM70,000) and in China (RM45,000 to RM60,000).

“We also have to pay such a high price for local cars. In China, the locally-made Chery QQ3 is priced from RM19,000 to RM23,000 but here for a Perodua Viva we have to pay RM38,000.

“This proves that the government's protectionist policy exploits the rakyat... this does not contribute to the government's income, but to the profit of BN's cronies in Proton and Perodua,” he charged.

BN Backbenchers' Club deputy chair Bung Moktar Radin (BN-Kinabatangan) denied that BN cronies are benefitting from the duties imposed, but agreed that imported cars in Malaysia are overpriced due to the excise duty.

Though distancing himself from Chong's allegation of protectionism by the government of local car makers, he did say that there is not much else they can do but build better cars at lower prices to keep up with the rest of the world's automotive industry.

“The reason why imported cars are expensive is because the excise duty is so high, going between 300 to 350 percent (of the vehicle's base price)... To remain competitive we have no other option but to improve the quality of our cars and sell at a reasonable price,” he said when asking a supplementary question.

This article was first published on Malaysiakini.com
 
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SundayDriver

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SundayDriver

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suppose to protect the loc company it seams...
for like 20 bloody years still need to protect r? still need to breast feed meh...
ish... each time bring up these kind of topic sure tu lan wan...
 

quiksilve

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quiksilve

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Guess i'll have to wait even longer now to buy my GTR 35 at less than RM 200K brand new SWTS!!!!!!!

So i guess its nothing inspirational with the new Proton Inspira, just taking a Lancer Shell and slapping in a 1.8 engine. Double swts:stupid:
 
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jpoplover

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jpoplover

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really fucuk after read this kind of news again....

in before every 5 years have to change car.....
 

Penghanyut

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Penghanyut

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If this Gov can't help us to get imported cars cheaper, its time to try out another Gov. Register yourselves for voting and vote when the time comes!!
 

frootloops

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frootloops

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They get a lot of money then wife drives porsche kids drive ferrari...they protect local cars but dont buy local cars
 

viruz019

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viruz019

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so the question is..do u tink the prices will drop? im actually from overseas, brunei..and the car price is really OMG~ for instance..u get a vios here for like rm90k? brunei is selling it for B$20k..covert here..oso around rm43k..i can get two ><

though planning to work here since im in the games industry..wanna get myself a car..no idea if this thing bout the tax will go down will be true or not..dowan later buy my car then they say tax has been decrease..sure ximtia/heart pain T_T
 

speed2horizon

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speed2horizon

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Last time when there's opportunity to reduce cost and manufacture Proton in China, gave excuses to China produces bad quality car la, this la that la...

How many years has China produces car for Volks Wagen... Selamba only... Haiz...
 
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jaymansion

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jaymansion

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my neighbor who is a menteri....he owns 9 cars which all of them price more than rm500k per car(rm500k is the cheapest one I saw)...his son drove a gtr35...
cool huh?
lol