Will Proton go bust if Pakatan Rakyat becomes the Government?



Why are cars way cheaper in the US?
  • Chris
  • 5:56PM Aug 7, 2012

The recent car prices issue made me curious. Having been totally unaware of such huge discrepancies between Malaysian and world prices, I went on the Internet to see what real world car prices were. I was shocked.

These are US car prices with US duty and import tax paid, which are just like Malaysian car prices with duty and tax also paid, but here, you will see, they are much lower and less exorbitant than in Malaysia.

Bear in mind all cars are CBU (complete built up) Japan, CBU South Korea or CBU Germany.

The following cars we get here are CKD (complete knocked down) cars with more than 50 percent Malaysian content and “supposedly” are cheaper due to their being CKD and supporting Malaysian manufacturers.

Mainstream car prices

Honda Accord     US$21,480 (RM64,440)         RM150,000

Honda CRV         US$22,495 (RM67,485)         RM150,000

Honda Civic        US$15,955 (RM47,865)         RM115,000

Toyota Altis        US$16,130 (RM48,390)         RM112,000

Toyota Camry     US$22,055 (RM66,165)         RM180,000

Kia Sorento        US$23,150 (RM69,450)         RM160,000

Hyundai Tucson  US$19,245 (RM57,735)         RM140,000

Hyundai Sonata  US$20,895 (RM62,685)         RM150,000

Hyundai Elantra  US$16,695 (RM50,085)         RM98,000

Luxury car prices

BMW 328i           US$36,500 (RM109,500)       RM300,000

BMW 528i           US$46,900 (RM149,000)       RM400,000

BMW 535i           US$52,500 (RM157,000)       RM600,000

BMW X5             US$47,500 (RM142,500)        RM580,000

Mercedes E350   US$51,000 (RM153,000)        RM400,000 (In M’sia for only CKD E250)

Jaguar XF           US$53,000 (RM159,000)       RM500,000

Jaguar XJ           US$73,700 (RM221,000)        RM1,000,000

Porsche Cayenne US$48,850 (RM146,000)       RM570,000

Please forward this to every Malaysian you know so that they may realise how we are being cheated in car prices and have been cheated for the past 30 years.

Most Malaysians pay close to 50 percent of their salary for their monthly payments for their cars.

Not only do the banks get an easy ride (cause everybody is “forced” to take loans), we have to live in debt for over seven years, depriving our family of better food and clothes.

Why are cars way cheaper in the US?




Industry supports PKR’s automotive policy plan
  • Aidila Razak
  • 11:13AM Aug 5, 2012

Car dealers have given the thumbs-up for PKR’s proposed automotive policy, arguing that any depression in car prices following excise cuts will only be temporary.

Federation of Motor and Credit Kuala Lumpur and Selangor president Khoo Kah Jin said the market will adjust to changes in price in “one or two years”.

“The National Automotive Policy pushed used car prices down by a lot and if the policymakers learn from that it should be fine. The market took about a year to adjust to that.

“As a whole, lower car prices are good for everyone, including dealers,” he said, echoing the Malay Vehicle Importers and Traders Association (Pekema), who despite scepticism, told the Malaysian Insider the same.

“The dealership just needs to clear out the existing stock, and when the new cars come in, it’s back to zero.”

This contravenes Minister in the Prime Minister’s Department Nor Mohamed Yakcop’s assertion that dealerships will go bankrupt if excise taxes are cut.

Industry supports PKR’s automotive policy plan


From the doctor’s mouth: I stopped using Proton after I stepped down….

Free Malaysia Today

Even Dr M prefers ‘superior’ cars

RK Anand | July 30, 2012

The former premier is the architect of Proton but he too stopped using the cars churned out by the national carmaker after stepping down.

PETALING JAYA: The opposition’s pledge to slash car prices with the abolition of taxes has got tongues wagging, many in support and a few against.

While Pakatan Rakyat claimed that the move would not dent the sales of national carmarkers, their political rivals however foretold doom for Proton and Perodua in the absence of government protection.

Proton was the brainchild of former premier Dr Mahathir Mohamad and its assembly line cranked to life in 1983. It was then a tie-up with Mitsubishi Motors.

While Mahathir, who according to his latest blog posting is sailing along the coast of Italy, had yet to comment on Pakatan’s election drive, he however had in April admitted to turning his back on Proton.

During his term in office, Mahathir, like all other top civil servants, were ferried about in a Proton Perdana Executive.

In a blog posting dated April 12, the former premier said that he had stopped using Proton cars after relinquishing his position in 2003.

Even his car aficionado and businessman son Mokhzani had preferred to steer clear of Proton, opting to be the importer of Porsche models instead.

“I stopped using Proton cars after I stepped down.

“I wanted to enjoy the ‘superior quality’ of the high-end European and Japanese cars,” Mahathir had said, implying that Proton made inferior cars which were not enjoyable to drive.

Read more: http://www.freemalaysiatoday.com/category/nation/2012/07/30/even-dr-m-prefers-superior-cars/#ixzz22CGhrIFA


Malaysia Chronicle

Monday, 30 July 2012 00:10

The greatest car robbery in Malaysia

Written by  Anti-robber

Minister in the Prime Minister’s office, Tan Sri Nor Mohamed has owned up that the car pricing in Malaysia indeed is the greatest car-robbery story.

His admission (Malaysia Chronicle, Sunday 29 July) that the revenue of RM7 billion netted from the excise duty imposed on cars will be lost if Opposition parties abolish the excessive duties is a revelation that will irk the citizens even more having suffered for decades with ridiculously over-priced vehicles.

On closer reflection, where is the BN government netting such a whopping sum of money from? From the pockets of its own citizens mate!

How much far better off would the Alis, Samys and Ah Kows be if they did not have to be burdened with the RM7 billion that they have to squeeze from their toiled merger incomes? Does the minister not sense this logic?

And mind you the argument he dishes out is a veiled threat that second-hand car dealers would go bust and many turned jobless. Now, Yang Amat Berhormat who put them in such a vulnerable state in the first place?

He threatens of bankruptcy. Hello Joe, even without the abolishing of the rob-from-Peter-to-enrich-Paul taxes, we already have thousands of Malaysians axed with bankruptcy every year.


Then of course there was another head in BN who argued that Proton will shut down and all the bumiputra workers will be begging on the street if the duties were done away with.

Again, that argument is also consistent with the line of thought with Nor Mohamed. It is also about robbing from the citizens to upkeep the un-productive, non-competitive Proton operations. Is it not?

Enough. The victims of Malaysia’s greatest car robbery scam are decisive. No amount of billowing threats is going to change the truth. The greatest robbery must be ended and the price of the crime paid in full. That too will eventually take care of the second-hand car dealers.

The greatest car robbery in Malaysia



Economists favour slashing car prices

Posted on 29 July 2012 – 09:21pm

Michelle Chun

PETALING JAYA (July 29, 2012): The government cannot continue protecting the local automotive industry through excise duties at the risk of jeopardising the national economy, say economists.

Prominent economist Tan Sri Ramon Navaratnam said while there were reasons to help the local car industry in its infancy, it must be asked why car excise duties are still in effect.

“Local carmakers should become self-reliant and competitive, but because of this prolonged protection, they have become weak and dependent on this to be successful,” he told theSun today.


Nevertheless, the chief executive of the Institute for Democracy and Economic Affairs, Wan Saiful Wan Jan, said removing excise duties would not negatively affect the nation’s economy as a whole, but rather reduce the government’s income.

“I doubt such a move would jeopardise the national economy, and removing or reducing car excise duties is a good idea, both politically and economically.

“These excise duties seem to portray that the government is more willing to protect the interests of a company, such as Proton and Perodua, at the expense of the consumer,” he said when contacted today.

Economists favour slashing car prices


Take your pick of the following:

Malaysian Insider

Car tax cut good for the public, say economists

By Lee Wei Lian
July 27, 2012

KUALA LUMPUR, July 27 — A cut in car duties — which currently run as high as 105 per cent — could help stimulate the economy by boosting disposable income and reducing household debt burden, analysts say.

Their comments come after Pakatan Rakyat’s (PR) made an electoral pledge to slash the hefty excise duties and taxes on cars that have caused Malaysians to bear some of the highest sticker prices in the world.

This has resulted in about 20 per cent of the RM581 billion total household debt in the country last year being held in cars, an asset that depreciates over time.

Economist Datuk Mohd Ariff Abdul Kareem said that consumers will be “very happy” with the tax cuts as cars, which are currently priced far above what consumers in many other countries pay, will become more affordable.

“Car prices are high and very distorted,” said the former chief of the Malaysian Institute of Economic Research (MIER). “Cutting taxes would mean better allocation of resources and consumers could spend more on other things which would have some stimulating effect on the economy.”

Car tax cut good for the public, say economists


Proton cars still cheapest after tax cut, says Rafizi

By Ida Lim
July 27, 2012

KUALA LUMPUR, July 27 — PKR’s Rafizi Ramli today said that Pakatan Rakyat’s (PR) electoral pledge to cut car taxes will not adversely affect national carmaker Proton, saying that local cars will still be the cheapest under the proposal.

PR is offering a complete revamp of the National Automotive Policy (NAP), including slashing hefty excise duties and reducing the triple-tax burden imposed on cars here, should it come to power in the next general election.

The offer to voters will effectively boost the disposable incomes of Malaysians and reduce household debts, the federal opposition has said.

“‘If excise tax is abolished… what doesn’t change is the price advantage, what changes is the tax,” he said at a press conference.

He said Proton and Perodua will remain the cheapest cars in the market after the tax cut.

Proton cars still cheapest after tax cut, says Rafizi


No new taxes after car excise duty cut, says Pakatan

By Ida Lim
July 27, 2012

KUALA LUMPUR, July 27 — Pakatan Rakyat (PR) will not impose new taxes to compensate for any potential loss of revenue from its plan to shelve excise duties to lower the sticker price for cars if it takes power in the next general election.

PKR’s strategy director Rafizi Ramli had on Tuesday announced that the federal opposition intends to cut the triple tax on cars — import, excise and sales tax — if it wins the coming general election.

Instead, he said, a PR federal government would instead cut spending and also revamp the current Approved Permit (AP) system to make up for any losses.

“I think we can look at how we manage APs. APs now… to give riches buta-buta (blindly),” he said.

“If AP is managed well, there will be a source of wealth that can balance the loss of revenue from excise duty.”

No new taxes after car excise duty cut, says Pakatan


Free Malaysia Today

Cheaper cars will force Proton to compete

Syed Jaymal Zahiid | July 26, 2012

DAP economist Tony Pua says that by revamping the National Automative Policy, Proton will be forced to buck up

KUALA LUMPUR: Making cars cheaper through tax cuts would likely hurt national car maker Proton but this will force the ailing company to compete, said DAP national publicity chief and economist Tony Pua.

Driving Proton’s business down will likely be among the major opposition to Pakatan Rakyat’s proposal to reduce car prices by cutting duties as consumers will opt for cheaper imported cars as they are seen to be superior to its local counterpart.

The national car maker had seen its fortunes rapidly dwindling despite the protectionist policies which have had helped Proton keep its car prices comparatively low. But it is barely surviving in the increasingly competitive automotive industry.

Read more: http://www.freemalaysiatoday.com/category/nation/2012/07/26/cheaper-cars-will-force-proton-to-compete/#ixzz21odHzd00


Malaysian Insider

Perkasa says no to tax cuts as public will opt for foreign cars

By Mohd Farhan Darwis
July 26, 2012

KUALA LUMPUR, July 26 — Perkasa is against Pakatan Rakyat’s (PR) proposal to slash excise duties on cars because it will lead to an outflow of funds as a result of the public’s preference for foreign makes.

The Malay rights group also said the federal opposition’s proposal showed they were poor managers of the economy and were only out to make “false promises”.

Malaysians pay inordinately high prices for cars mainly because of the protection afforded to national carmaker Proton since 1984.

The public pays import, excise and sales taxes that translate into some of the highest car prices in the region.

A recent income survey found that a household earning RM3,000 a month could spend up to 50 per cent of its income on maintaining a car.

Perkasa secretary-general Syed Hassan Syed Ali told The Malaysian Insider yesterday that the fate of Proton employees would also be put at risk because the prices of the national carmaker’s vehicles would be about the same as foreign cars.

“The people will be able to buy cars at a lower price, but how low?

“No one will want to buy Proton cars because the price of imported luxury cars will be about the same… (and) Proton employees will be upset (at) getting retrenched.

“This will see the country’s money flowing out because the people will be more interested to buy imported cars,” he said.

Perkasa says no to tax cuts as public will opt for foreign cars


Free Malaysia Today

Hitler vents his fury on Proton

RK Anand | July 25, 2012

As the debate over cheaper cars rage, FMT reminds its readers of a comical You Tube video critical of Proton.


PETALING JAYA: The opposition has promised cheaper cars should it form the next federal government, a pledge which it hopes would add a significant boost to its quest of seizing the administrative capital.

Pakatan Rakyat said it would review the National Automotive Policy (NAP) towards reducing the market price of cars, a move which the ruling coalition claimed would render the local manufacturers as road kill.

But car enthusiasts believe this would be a step in the right direction as the local companies such as Proton and Perodua would be jolted from their slumber to produce top-notch vehicles to rival their Japanese, Korean and European counterparts.

Since its inception in 1985, Proton, the brainchild of former premier Dr Mahathir Mohamad, had been criticised for churning out inferior cars not befitting of their price tags.


Posted more than a year ago, the video depicted a scene from the German movie, Downfall, where Adolf Hitler is being briefed by his officers, according to the subtitles, regarding a motor event, which even included drift routines.

The Fuehrer then orders his officers to book him a Mitsubishi Lancer GT for the trip, and the latter, looking rather nervous, inform their leader that Proton has re-badged the car.

Upon hearing this, Hitler, appears shocked, and subsequently loses his temper. He then launches a verbal tirade, replete with expletives.

Among others, he screams: “It has been 27 years! Where is their originality?

Read more: http://www.freemalaysiatoday.com/category/nation/2012/07/25/hitler-vents-his-fury-on-proton/#ixzz21k1xg7te


Malaysian Insider

Opposition’s promise to reduce car prices just for votes, says Khairy

KUALA LUMPUR, July 25 — The opposition’s promise to reduce car prices is just a political gimmick to gain popularity and attract votes because such a promise cannot be fulfilled, said Unmo Youth Chief

Malay importers say yes to cheaper cars but doubt Pakatan pledge

By Mohd Farhan Darwis

KUALA LUMPUR, July 25 — The Malay Vehicle Importers and Traders Association (Pekema) welcomed today Pakatan Rakyat’s (PR) electoral pledge to slash the hefty excise duties and taxes on cars seen as ..



KJ: Cheaper foreign cars will kill Proton
  • Hazlan Zakaria
  • 9:14PM Jul 24, 2012

While acknowledging that PKR’s promise to make cars affordable will benefit millions of rakyat, Pemuda Umno chief Khairy Jamaluddin believes such a policy may spell the doom of national car maker Proton and deprive the government of lucrative income.

“If we abolish import and excise duties (on imported cars), it may impact negatively on Proton,” Khairy told reporters at a press conference in Bangsar tonight.

NONEHe argued that Proton has people working for it as well as its vendors and distributors, which number in the tens of thousands.

“It is not that we want to protect Proton forever, but such sweet promises… without proper planning may spell economic catastrophe.”

Khairy also argued that apart from bringing harm to Proton, the opposition’s cheap car promise will also deprieve federal government coffers of about RM4.6 billion in revenue annually from the scrapping of import and excise tax on foreign cars, something which he said Pakatan has yet to explain how the country is going to absorb.

KJ: Cheaper foreign cars will kill Proton


Malaysian Insider

Pakatan to slash car taxes after polls win, says Rafizi

UPDATED @ 04:33:38 PM 24-07-2012
By Clara Chooi
July 24, 2012

PETALING JAYA, July 24 — Pakatan Rakyat (PR) will offer a complete revamp of the National Automotive Policy (NAP), including slashing hefty excise duties and reducing the triple-tax burden imposed on cars here, should it come to power in the next general election.

The offer to voters will effectively boost the disposable incomes of Malaysians and reduce household debts, PKR strategy director Rafizi Ramli said today.

The PKR leader told a press conference here that the plan, to be slotted into PR’s election manifesto for the coming 13th general election, will be used as a major campaign issue for the federal opposition as it fights for federal power.

“Malaysians know that the prices of cars in Malaysia are extremely high as a result of the Umno-Barisan Nasional (BN) automotive policy, which was designed to protect the interests of their cronies at the expense of the people,” Rafizi said.

“We want a complete revamp of the NAP… phase out taxes, let prices be competitive and reflect the actual cost of the car… this will have a significant impact on our disposable incomes,” he added.

Pakatan to slash car taxes after polls win, says Rafizi


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2 Responses to Will Proton go bust if Pakatan Rakyat becomes the Government?

  1. Pingback: PROTON & ANGRY CUSTOMER: JUST WHAT IS GOING ON? | weehingthong

  2. Pingback: PAKATAN RAKYAT: MANIFESTO | weehingthong

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