Market Determines Vehicle Prices, Not The Govt -- MITI

KUALA LUMPUR, Sept 4 (Bernama) -- Vehicle selling prices in Malaysia are not controlled by the government and are determined by the market, according to the Ministry of Investment, Trade and Industry (MITI).

MITI elaborated that the government, through the Ministry of Finance, has provided various incentives and tax exemptions for vehicles assembled in Malaysia, including those from national car manufacturers.

“The purpose of these incentives includes encouraging the use of locally produced components from vendors, promoting quality investments, and conducting research and development (R&D) activities in Malaysia.

“Through these incentives and tax exemptions, vehicle manufacturers can offer competitive prices for the local market compared to fully imported vehicles,” it said in a written reply to the Dewan Negara posted on the Parliament’s website today.

MITI was responding to Senator Datuk Ahmad Ibrahim on whether the ministry intends to review the prices of Malaysian-made cars, which are perceived as too expensive, forcing people to take long-term hire-purchase loans despite local cars having no import duties.

Meanwhile, the ministry noted that there are manufacturers that produce affordably priced vehicles.

“Perodua produces its ‘Rahmah’ category vehicles, which are affordably priced at RM22,000, excluding insurance, enabling more people to own a car. Proton also offers the Saga model priced under RM40,000.

“The government hopes that through this approach, people can choose vehicles that fit their financial capabilities to avoid a heavy financial burden,” MITI added.

-- BERNAMA