This was an interesting article written by Syed Akhbar Ali in his blog. For those of you who do not know, Syed Akhbar Ali has written 2 interesting books that should be read by everyone especially the Muslims. His book “Things in Common” and ” Malaysia and the Club of dooms” is available in bookstores.
Recently we were told that subsidies need to be cut and thus the petrol prices are set to go up soon. What the government never tells you is the fact that Malaysia is the only country in the world where the price of a car is equivalent to buying a house!!!! Why is that so? You know the answer: to protect Proton and their cronies in the form of APs.
If the government is sincere in helping the people, they should cut the import and excise taxes of the cars and then only increase the petrol prices. The amount of money a person safes from the new lowered car price can be used to pay the petrol for many years to come , on top of the lower monthly installments he has to pay.
Again, whose ideas were all these non-sense? Mahathir bin Mohamed! He wanted to tax the rich Chinamen (as big cars = Chinamen) and give easy money to his bumi cronies but “what goes around comes around”, eventually the general Malays are the one who will suffer the most as 60-65% of the population are bumis and they need cars as well!
Enjoy reading the article below.
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 RM450,000.
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 sehargadengan 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 asad 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.
Pagalavan's Avatar 
Agree, if you own a proton inspira, you are actually driving a low cost apartment out of ur garage. Every year u are losing at least 10% of it’s value… By the way, do they really thinks putting 4 wheels together makes that a car? Haha!!
you should compare every items, not just car…….
Then you will start to see why in the US / Europe things are much more expensive than in Malaysia.
tell us how much USA/ Europe charge for TAX? Income/Sales Tax – Very High.
tell us how much USA/ Europe charge for HOSPITAL?
tell us how much is the cost of renting/buying home in big city like KL in USA/Europe? My small decent apartment in London cost me 14K per month rental compare to about the same apartment I stay in KL for 2.5K.
Things are lots cheaper in Malaysia – you need to choose between necessities & luxury.
Jeff,
For a Canadian in a big city earning $100k PA, after tax is $5k/mo.
The monthly expenses:
1) 800 square feet condo monthly installment : $1500
2) Honda civic: $350, gas for car: $200
3) Grocery: $500 per person
5) Electricity: $150
6) Other bills: 500
Total expenses: $3200
For $5k a month, one can save $1800 (RM5400) and paying for one’s own property and car.
To compare with my brother’s take home in malaysia at RM5k, he isn’t having much of any savings or able to buy a home.
that’s comparing standard of living for each dollar earned in Canada comparing to each dollar earned in KL.
And, one doesn’t need to pay at all for hospital admission/ seeing GP in Canada.
Try Denmark with their 180% tax 9 25% VAT. Or next door Singapore with their endless papers just so one can own a car.
Car price is not the issue, the issue is the mentality- The public transport of Malaysia, especially KL need to be far more efficient. Everyone should be fighting for this instead. We dont need more cars! its just backward! Citizen of KL should not be compelled to buy a car to fulfill its living. It shouldn’t be a necessity.
With the ridiculous price of car right now KL is already littered with them and causing massive traffic issues, if car is cheaper, then we might ended up like Jakarta’s traffic nightmare.
If Malaysia is expensive, try Singapore for their endless paperwork just so one can own car, or Denmark with 180% tax + 25% vat.
The issue here is the mentality – Malaysian dont need cheaper cars, hell Malaysians especially KL citizens should not need to own a car! The public transport must be heavily invested more and more. This is what the public should be fighting for. Car should not be a necessity. Paying for gas should be look at as ridiculous. Urban planning should not include incorporating more cars that can pass through like now with our endless highways to city center.
With the ridiculous price of cars now, KL is littered with them and traffic problem is just an issue that cant be resolve. you can build so many highways, it just add more card to it. Imagine Malaysia with cheaper cars, we might as well ended up like Jakarta, with the dead locked traffic etc.
please delte this comment. something is wrong and i thought the previous comment was not loaded
please advice me on what i must do with the rm318k in my epf,so that my money don’t get devalued 1year from now at 55yrs old, i early retire(fr Mfb/Mbb due to office politic,had low eq,self confidence,tension then, in dec2011),is it worth to buy a honda jazz now at rm72.8k or just enjoy d 6% epf int till 75yrs old,or use my money to get a degree in law,journalism or economics, as my command of BI,BM,MANDARIN,HOKKIEN are good, mainwhile join an Ngo or DAP in Johor,Sabah,Sarawak,or set up my own ‘Universal Health,Harmony & Prosperity Party’ and join force with PR to topple BN when I am elected an MP in year 2018.Tq.
Traffic jam in Kl,blames Samy Vellu he was the one who built highways everywhere in KL & collect tolls from D rakyat & earn fat commission fr them and his Tok Besan Mahathir, during his reigned from 1981?-2007? 27years or so caused the drop of d already rm1.20=sing$1.00 to rm2,50 now.in 1981,toyota corolla 1.3 was rm17k, when Dr M started to built his Gajah Putehs:protons in 1984,peroduas,giving out aps,penang bridge,cyberjaya,putraja,klia,etc,the heavily borrowed fr Japanese yen started to rise against rm.etcs.The point is come election time 2018 vote PR in as government or the ordinary Rakyats will also be make bankrupted by BN Governmet,beware of BN TACTICS DURING ELECTION NO MORE BLACKOUT,PREPARE THE GENERATOR TO PREVENT HANKY PANKY,MONEY POLITICS,ASK YOUR FRIEND TO TAKE PHOTOS WHILE U TAKES BRIBES ANGPAU,ETCS,MAKE SURE Daps, and me win a lot of seats enough to become Prime Minister, as a ‘Sukyo Mahikari-basically ajaran buddha’ member,i don’t belief in Huduw,i belief in religion freedom and intermarried without having to convert like others countries and for the sake of PR Khalid should be gentleman enough to let Wan Azizah, take over to see whether she really got the golden touch or is just being manupulated by her husband.beware umno is now trying to fish in cloudy water,menaguk di air yg keroh to take over like Perak,the kedah mb is just the repeat of Mahathir dynasty.
There are A LOT of things that have ridiculous prices prices at Malaysia, especially for car parts. Good thing I found this website, http://ikutkiri.com. Not only the prices are reasonable, but the items are really good too. 5/5 would buy again
wow http://ikutkiri.com really is good place to buy car parts for our car. the price is reasonablee. its also have many car parts according to brand!
Thank you Dr. Pagalavan for the nice article I enjoyed to read it with sadness !! But I believe there is more reasons for the high tax of the imported cars ( taxes only of imported cars can be millions yearly !! and why the people agree to pay double and triple price ? ) who enjoy this millions ??
Usa income tax for 100000usd per year is about 22k, mean after tax is 78000usd …malaysia rm100000 income tax after deduction is rm90000..yes usa tax is higher but let calculate this way
For usa 78000usd = 6500usd per month
Buy a bmw 3 series only around 400 -500usd per month –6500usd -500usd =6000usd left over
For malaysia rm90000= rm7500 per month
Buy a bmw 3 series rm3000 per month
Rm7500-rm3000 = rm4500
Plus we here buy iphone for rm3000, there 599usd , and many other things also much expensive than in the usa
So for the one who say malaysia is cheaper to live must fail ur math
It’s 2016 and the price for a small car like Kelisa is still rm36k to 37k . A waiter in the USA can afford to buy a new small car for about 6 to 7 months of his salary while the same isn’t true for a waiter in Malaysia ; He probably will be suffering for 7 to 9 years to finish off his car loan . What a ridiculous country to live in .
Have the car price going down now? We had changed government thrice in 3 years and yet nothing changes , Mr rafizi with his formulas before the election now just fell out of the radar never to be heard again 😂😂😂, the truth is nobody read your blog I just found out about it today , it’s very unlikely things will change near future with climate change etc.. highly doubt it
( They had 22 months in power yet do nothing to change the policy)