By Syed Akbar Ali.
Well that seems to be the gist of the review of the National Automotive Policy or NAP. Has anyone noticed that the acronym NAP means to sleep?
And our brave MSM (mainstream media) said today “the National Automotive Policy (NAP) has been comprehensively overhauled to ensure a healthier automobile industry. However, there was no indication if there would be any reduction in the price of cars.”
It means its just back to square one. There is no break for you and me – the long suffering citoyen, the masses, the proletariat, the worker ants. We will still be paying the highest prices for cars in the world with our
We will be paying up to RM100,000 for a locally assembled 2000cc Perdana when for the same price (USD29,000) people in other countries like the US can easily buy a Mercedes Benz 200 CLK - 2010 model !
I dont get the part about “ending a freeze on manufacturing licenses for luxury cars” above 1800cc. First of all define what exactly is manufacturing? Assembly is also classified as manufacturing.
What is the big deal about “unfreezing licenses” ? First of all it is not as if there are hundreds of car manufacturers waiting to rush into the vacuum. There are hardly a dozen big car makers left in the world anyway. And they have all been here for decades.
Looks like the NAP is easing up on something that does not make much difference.
And it will definitely not make major car makers start coming to
Almost every car manufacturer in the world has serious manufacturing plants in
In
So we are not able to achieve a higher standard of living for our people or lower their cost of living either. Our people have to pay the highest cars prices in the world. Why?
The Minister says the Government collects RM6 - 7 billion a year from car duties and taxes. So the Government needs the revenue. This is not an answer.
The Government has acknowledged, in the Auditor General's Report, that it loses up to RM28 billion in poor management of expenditure. The Government has paid RM42,000 for a laptop computer. They invested RM500.0 million in some aircraft manufacturing in the US and just lost the money. Cut the waste and dont burn the taxpayers money. And dont burden the taxpayer anymore.
Also the AP holders are making billions of Ringgit with little or no real benefit to anyone, even to themselves.
On the other hand if the car market is freed up, more benefits will certainly, most definitely accrue to the Malaysian economy. The resources that are freed up, the taxpayers money that is saved, the citizens monthly living expenses that are reduced, will all be channelled elsewhere within the economy. We must have faith in the basic laws of economics. As long as we stick to economic efficiencies there will positive outcomes. But if we keep supporting innefficiencies, there will be a huge price to pay.
When she was the Minister of the MITI, Rafidah Aziz once said that APs would be removed. That was years ago. The AP’s are still around.
Now the Governments says Open APs (aka cap duit APs given to cronies) will be in place until 2015. Why 2015?
It looks like “People First, Performance Now” has become ‘AP Holders First, People Later, Performance Also Later’.
The Minister says the long time frame until 2015 is needed to give time for the Open AP holders to adjust themselves to the new life (a life without cap duit APs) and also give them time to develop new businesses. Here is the quote :
“The termination of the (open) AP system by 2015 will provide an interim period for AP holders to diversify and venture into other businesses,”
Does this include the AP holders who do not even own a car showroom? Yes folks, there were such creatures too. Showroom kereta tak ada, tapi AP dapat beribu-ribu.
Oh boo hoo. Someone get me a handkerchief – I cant help the tears. The poor Open AP holders. They may have to do some other real business and do real work to keep their helicopters and swimming pools.
I really cannot believe the Minister said such a thing. They really do not listen to what they say.
Firstly just how many Open AP holders are there? I dont know if the AP King guy with the helicopter landing pad in his house is still in the AP business? But how many Open AP holders are there? 100? 1000? 10,000? How many?
And the rest of us 28 million people have to pay the highest car prices in the world, to give sufficient time to these easy money parasites to learn to diversify their income over the next six years so that they can still maintain their helicopter pads and swimming pools?
And why do we need franchise APs ? I believe franchise APs are APs that go with the name of the car. For example there may be APs just for Toyotas. If
But here is the soalan cepu mas : what really is an AP? What does it do to the value of the car or towards improving the standard of living of the average Malaysian? Can someone answer this first?
The ministry also has a sense of humour. They say “
Hybrid cars are technology intensive. No car maker is going to come to
We are still manufacturing left over Japanese Mitsubishis (Proton) and left over Daihatsus (Perodua). There is no chance for our car makers to develop our own hybrid technologies in such a small and heavily protected market. Our market and technology inefficiencies are just too acute.
Even if the car makers want to invest in hybrid technology, it will possibly happen in
In brief these measures are not aimed at making the motor sector more competitive.
And why prohibit the import of used cars from 2015, and used automotive parts and components from June 2011? Kenapa begitu seronok hendak menyusahkan manusia saja? The import of recon cars has served the public well. At least they have a chance to buy good quality cars at fairly decent prices. Now, itu pun tak boleh ke? Kenapa syok sangat nak menyusahkan orang?
As for Proton, the time has come for them to be cut lose. Compete or just roll over and die. 25 years is too long a burden on the poor public. Proton punya pasal, orang Melayu yang jadi miskin sekarang. It was a good experiment. We have learnt a lot from the Proton experience (yes I can hear the sniggers). But we have to face the facts. Proton cannot survive anymore without burdening the people’s pocket.
I fear that Proton is going to become an election issue that we just cannot answer anymore. The ‘some more what issue can tok ah’ Opposition may just make car prices a big Election issue. The pro Government Bloggers like BigDog, Voice, Rocky, Marahku, Jebat Must Die, Parpukari, me and others are going to have a tougher time speaking up for the Government on this one.
19 comments:
Naikkanlah lagi tax on cars. The higer the tax the better. Unclog our roads. Kita naik basikal sajalah. Lagi sihat badan.
Hi Pak Syed,
Let me digress a little.. I am always Pro Opposition. I feel that the whoever becomes the govt I will always support the opposition. It is when we oppose then the other party will realize what is at fault and hence improve on it..
For the Opposition to harp on the NAP is nothing new and not a big deal either. I think it is good. At least someone can bark up the right tree...
As you have put it, the overhauling of NAP has come to nuts. If you as pro govt can see the flaws, who wouldnt, right?
There is a saying, if you need to pull the weeds, make sure you pull the roots out as well.. Malaysia needs a dose of fresh mandate seriously to say.
I 100% shared the same thinking as you are. Another subject is regarding cars above 15 yrs old have to go for inspection for road tax renewal. I really can't understand why the government like to do all kinds of silly things. Kena tukar slogan "Kerajaan Didahulukan dan Rakyat Dikorbankan".
Your take is absolutely correct - it is the rakyat that suffers, regardless of which political side you take.
"In Thailand the 1500cc Toyota Vios costs about 504,000 baht (about RM50,000). Over here the Vios costs RM75,000 or more. "
When one considers that Thailand's per capita income is less than Malaysia's, then this disparity is even greater, probably pushing it to equate that Malaysians pay double of what Thais would pay for the same car.
And if the Malaysian auto industry wants to right itself, it has to make the quantum leap into Next Generation cars, not the conventional technology. Otherwise, we will perpetually be playing catch up.
Hello Brudder Syed,
Good one there & I take my hat off to you for your fine effort to highlight the shortcomings vs your offerered suggestions.....
You know, I know & they also know that Rhetorics & Lies if properly "managed" like what Tok Mat DID then & now revealed in his book....DOES WORK....
MAN's memory last 3 MONTH only, so....EAT YOUR HEART OUT STUPID CITIZENS !
But please go easy lah....they might use your friends..... as "Colateral damage" in time to come! lol.
Cheers & take care.
Datuk,
i totally agreed with your comments. But what can a normal citizen like me do to tell/acknowledge or at least do something so government could heard US the rakyat, and CHANGE the NAP?
AP is corruption made less 'criminal-like' by coating it with an administrative flavor. If the Minister of MITI makes out a check to pay for non-existent goods or services, he has committed corruption. MITI issues AP which is "cashable" indirectly with payments made by car importers or anyone who wish to purchase an imported car. Is there any difference between a check and an AP when both are 'cashable'? Isn't this corruption when the Govt puts 'govt revenue' into the bank accounts of sekected cronies via the administrative procedure of giving them APs? Can the AG Gani Patail look into the legal aspects of this cleverly disguished corruption?
SAA, there are actually benefits also with Proton. Yes indeed consumers bear the burden to sustain development of an infant industry (automobile) all these while.
However, with Proton, there are many jobs created. From the supply chain to the industrial plant in Tanjung Malim. There are also a lot of marketing jobs, finance, accounting etc besides the engineers that Proton hire.
The creation of the industry also saw Malaysia improved its human capital in terms of knowledge in automobile engineering.
Abstract it may seem but it is value creation in some sense.
Also, the current system can be seen as a redistribution of wealth. Rich folks who still want to drive Mercedes and BMW pay the premium (tax). The premium enters the Government fund and used to subsidize other areas like public hospitals, education, and even create jobs in the complete automobile industry.
Proton actually was quite successful under Tengku Mahaleel. I remember Tun saying that Proton had RM 2 billion in cash and was quite strong financially.
Now, I dont think it is the case. One wonders what happened and whether Proton was made a political cash cow.
However, solutions are available for Proton. There are car bloggers out there and I have seen their artistic designs that speculate on Proton cars from time to time. Perhaps, Proton should consider employing these "designers" instead of their dull looking cars nowadays.
Also, though Proton is our national pride, perhaps it is time we ask the Govt to release their controlling stake to allow a proper takeover. There are many methods to have a say in Proton and we need not hold 51% shareholding just like how Holden and General Motors are partners in Australia.
Holden Cars are quite nice by the way.
I sure hope to see a successful Proton.
Profound post bro. Ginilah kalau Kerajaan Najib mengutamakan AP holders dan keluarga mereka maka biarlah election akan datang mereka dapat undi dari AP holder dan keluarga mereka sahja.
I am a BN supporter but like you I think the Najib Government got it all messed up for this automotive policy which basically say screw the rakyat I want my rich AP billionaires saved first.
Very sad for BN who say they are listening to the rakyat the slogan People first, Performance Now seems mere sloganeering as for automobiles its AP holders first , Rakyat save themselves.
Betul Bro, I can bet that the PKR,PAS and DAP alliance will capitalise on this issue and promise to do away with the AP as early as after the next election if they win. I am not surprised if the rakyat will listen to the promise as who would not want to buy a Vios or a Citi for RM50,000 same as the Thais do.
After all if these political parties renege on their promises, WE the Rakyat can change them in the next election after that.
As for me, I will vote for political parties who will take care of the majority Malaysians not parties who indulge to the wants of the minority rich elites.
I hope the BN Government can review this so called policy, if they are interested to govern after 2012, that is.
This is an important economic discussion you've brought up here, and surely can help many Malaysians understand these matters better.
You wrote: But here is the soalan cepu mas : what really is an AP? What does it do to the value of the car or towards improving the standard of living of the average Malaysian? Can someone answer this first?
The NEP (New Economic Policy) core objective is to help the Bumiputera enter the business arena and to raise their financial status. Thus, to hazard a guess, this AP rule is one way to achieve those two objectives.
Amethyst
Salam Tuan Syed,
Kadang-kadang saya hairan, 'the thinker' yang buat dasar NAP ni tak terfikir ke macam yang tuan syed fikir nih.
Kalau tuan syed boleh fikir sampai macam ni, saya agak-agak, malam-malam lepak sambil minum kopi@teh pun kami boleh fikir jugak.
tapi kenapa lah yang 'atas' tu tak boleh fikir agaknya?
Mungkinkah kerana ramai PTD yang malas berfikir dan cuma pandai bercakap sahaja....
tolonglah... masalah tahun 2000-an memerlukan cara selesaian 2000-an juga, bukannya masalah tahun 2000-an kita selesaikan dengan cara 80-an....
Sampai mati la bawak proton 'sampan' tu nampaknya...
minyak pun mahal...
apa boleh buat, taik kambing bulat-bulat...
Mohamad Roslan Zainuddin
Sungai Siput (u),
Perak.
Bro,
NAP? I thought it meant no akal policy.
One of those 'sniggering' today would be Prof Chee Peng Lim of Universiti Malaya and God only knows how many times he would have done so over the lifespan of the great Malaysia saga.
When he pointed out the flaws in the auto policy ways back then, our good doctor, crimson with rage, came down upon him like a ton of bricks. Literally telling him to keep his economic wisdom within the confines of the university grounds, and to leave affairs of state to the medicine men.
Apparently, then, as now, the only people with answers to all our woes were the politicians. So now we see the results, and like all the other failed experiments of dictators like Stalin, Mao, Mugabe, et al we have our own home-grown attempt at parachuting into the first world come crashing around our ears.
The pity is that the perpetrators of this failed ventures get to wash their hands and walk away while the peasants are left with the baby.
Any other commercial outfit would have sacked the architects of such a fubar. In bolehland like all turd world countries, they are praised and go on to greater things.
And now we have even lesser mortals tinkering with the nasty automobile policy and coming up with even bigger lumps of irrationality to ensure the pain for the ordinary folk continues while the APeists continue with their much coveted lifestyles.
The Govt here doesn't seem to know how or want to to maximise revenues for the benefit of the larger public.
Thus AP's were given away free to cronies and realtives of the well connected who passed it all to the car buyers, some as you say, without even opening a show room!
Last week, India announced open tenders for 3G licence. Here, we gave it away for free. Digi was denied a licence after market rumours were hot that they had won it. But with intervention by Lim Keng Yaik, the 4th licence ended up in the hands of a local company with zero track record but strong links to MCA. M'sia Bolih!
And now all 4 licencess for Wimax have been fined for not rolling out their services on time, some as much as $1.9 million. Will they pay up? My bet is, no. They will find a "win-win" solution with the Minister and pass it on to users.
Thus the circus goes on. How quickly they forget that when the AP scandal broke out between Dr.M and Rafidah Aziz, Najib promised AP's will be phased out by 2010. Muhy quitely said it may be necessary to continue till 2020!
Now in true paradigm shafting compromise, it is 2015. Sure? A definite maybe!!
dpp
We are all of 1 race, the Human Race
Let me share a little bit more for the benefit of those who might know. Well, I guess majority of us know..
I have to caution that I might be wrong and I hope that I am wrong but the way I see it, my gut feel tells me that I might be right after all.
Problem with Proton is simple. Cut down the profit margin, increase the quality of the product, reduce unnecessary cost (be it manufacturing cost, corruption, kickbacks or whatever you would like to call it) and Proton would be able to survive on its own and compete in the global market.. Let me elaborate.
Those running Proton directly or indirectly are counting the chicks before the eggs hatch sadly to say. These people are only concerned with profit. On every hand of each car sale, they want to earn from all avenues. This is the typical attitude of left pocket, right pocket, all pockets also want to masuk.. How la?
....cont
....cont
If these buggers are only concerned about profit, then how the hell 1 would focus in ensuring long term business? Our cars are already freaking expensive and yet when there is lacking of quality and poor after sales customer service, who in the blue hell would want to buy our car? I am not sure if anybody is aware but one of our Protons failed the safety test in NZ of late MISERABLY.
Let us begin with taxes. Why in the freaking world when we Malaysia is manufacturing our own national car is subjected to govt tax and excise duty? This is utter STUPIDITY. And this only shows that those buggers who helm Proton are only interested of their own well being and pockets..
Do away with govt tax and excise duty hence reducing the price of our car. The profit margin will naturally drop but there is still room for profit anyways. This in a way will attract buyers..
Take for instance any Proton car that is selling at RM50k. I bet the duties and taxes account for at least 20%-25% of the car price. Is this really necessary? 20% is a lot. 20% amount to RM10k. If a milo tin quality car is retailing at RM50k, who in the sanest mind possible would want to spend that money? Obviously those who know the value of 1 cent will fork out perhaps an additional 10k to 15k and buy a Japanese car.
Whoever thot of raising the price of Japanese cars and thinking that Msians will resort to buying Proton at such an unreasonable price must be hell of a stupid donkey!
Look at the urban folks for instance like KL. How many would want to spend their valuable dollars and cents on Proton? When they can afford to buy Camry's, Civic's, Accord's and CRV's, do Proton really think that these folks will not mind buying a 50k Proton? Again, like I said, those who helm Proton is stupid.
Back in those days a Saga Aeroback was selling at RM40k and today the 'all new aeroback version' is selling less than RM35k. Why is this so? If the same saga aeroback is selling at RM35k today, why the hell is a simple Persona or Gen2 or even Waja selling upto RM60k?? Does this actually make sense?
If I were given a choice to choose between a Waja and Vios, which would I buy? If I can afford to buy a 60k car I dont mind taking an additional loan of 10k, so be it.. How much is a 10k loan spread across 72 mths? Slightly RM120 a mth I would say?
Look at our Protons selling in other countries.. Take Singapore, England and Australia for instance... Hell, our Protons are selling like lelong and no one even wants to buy.. Dont talk abt conversion rate.. Because Protons are relatively selling at a cheap in those countries..
Take Singapore for example.. Cars are seriously cheap in Singapore with the added fact that they have strong purchasing power. But yet, how many would opt to buy Proton? They rather spend their money on Cherry QQ.. Cherry QQ is China made car. And it looks so freakish..
I totally agree with what Pak Syed hv to say.. Why still protect Proton all these years? If Proton is generating revenue to the govt, then seriously I dont see the govt putting it to good use.. Let Proton compete on a level playing field.. And if they cant, then just be done with it.. Learn from our past, learn from our mistakes and move on...
I wouldn't mind high car prices if public transportation was good. But that simply isn't the case here...
With the average Malaysian's income, buying a car is a small yet necessary luxury, given that many stay at some Taman Terrace House in suburbia. And having to drive down 10-30km each way to go to work (and pay toll too) in the cities. Its considered a 'bread & butter' issue.
Even worse (for the lower income fellas) is the mandatory yearly inspection for cars >15 years. What's the chances this new law was by the Proton/Perodua lobbyists and their dealerships to pressure car owners to scrap their old vehicles? There are many lower-income people & old folks who can't comfortably afford to go on another H/P loan to get a replacement car.
The rural kampung fellas are gonna have it the worst...
Bro Syed,
It all boils down to....
Politicians, Corporate Owners, GLC Nominees & Cronies are all having "Fun Times" with their PERKS & $$$....
You scratch my back & I'll scratch yours...at our expense!
At the end of the day, they are all "Squeezing" each other by the "Orbs/Jugulars"....
Remember this one...
LESSON IN POLITICS JOKE...
A son asks his father, "What can you tell me about politics? I have to learn about it for school tomorrow."
The father thought for sometime and said, "OK, son, the best way I can describe politics is to use an analogy.
Let's say that I'm the CAPITALIST because I'm the BREADWINNER.
Your MOTHER will be the GOVERNMENT because she CONTROLS EVERYTHING...
Our MAID will be the WORKING CLASS because she works for us....
YOU will be the PEOPLE because you ANSWER to US....
And your BABY BROTHER will be the FUTURE....
Does that help in anyway?"
The little boy said, "Well, Dad, I don't know, but I'll think about what you said."
Later that night, after everyone had gone to bed, the little boy was awaken by his baby brother's crying.
Upon further investigation, he found the diaper dirty. So, he went down the hall to his parent's bedroom and found his father's side of the bed empty and his mother wouldn't wake up.
Then he saw a light on in the guest room down the hall, and when he reached the door, he saw through the crack that his father was in bed with the maid. The son then turned and went back to bed.
The next morning, he said to his father at the breakfast table, "Dad, I think I understand politics much better now."
"Excellent, my boy," he answered, "What have you learned?"
The little boy thought for a minute and said....
"I learned that the CAPITALIST is SCREWING the WORKING CLASS....
The GOVERNMENT is sound ASLEEP....
IGNORING the PEOPLE....
And the FUTURE is full of CRAP."
So if they do no take heed, then let us give them more "Rope" to further "Hang" themselves & Self Destruct/Implode...
Maybe before the 13th GE...
Hi Syed
Thanks for putting things in perspective. Good article. The current AP beneficiaries have been given notice years ago to diversify. I am not surprised if the AP kings interpret this to mean spending their easy come easy go money on bigger jets and more expensive women and wine.
Those in power have become drunk on the easy money - propped by by kick backs from these AP beneficiaries.
We the rakyat are to be blamed as well. In which other country will politicians be allowed to get away with theft on such a large scale?
Despite your intelligence, I cannot understand why you class yourself as a pro-government blogger. Do you mean pro-BN?
If you really mean pro BN then it makes more sense for you to close this blog and join the BN and try to rectify the problems from inside.
Surely the whole country is pro-government as I don't think there is any fool in Malaysia that is pro-anarchy.
Until the government stop all their rhetorics and REALLY (and not just seen to) help the masses, they are not going to get my vote. They only help those within their circles. You rakyat, go and fly kites.
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