Car Prices in Malaysia Are Sky High!

By Syed Akbar Ali

In the USA, a brand new Toyota Camry 2.4L sells for RM69,396.00 (and not RM170,000), Toyota Altis for RM46,000 (and not RM112,000), Honda Jazz for RM36,000 (and not RM108,000). Want more?

DIGEST this article, after that, you may need to vomit. What is the Malaysian Government doing all these while. Ripping off our Rakyat for the last 30 year with AP's 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 Government has 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. 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 but only 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.
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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).

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!.