Budget 2012 Highlights

October 07, 2011 19:36 PM

2012 Budget Highlights

(Highlighted in BLUE is Automotive industry related issues)

(Highlights in RED is MY OPINION!)

KUALA LUMPUR: Highlights of Budget 2012 tabled by Prime Minister Datuk Seri Najib Tun Razak in Parliament Friday.
- Last year our FDI growth was the strongest in Asia and in the first 6 months of this year have already reached RM21.2bil
- In 2012, private investment is forecast to climb 15.9%, supported by foreign and domestic investment
- GDP in the first 6 months of 2011 was 4.4%, driven by strong domestic consumption
- In 2011, the economy is forecast to grow by 5-5.5%
- Private and public investment are forecast to increase by 15.9% and 7%, supported by foreign investment, the ETP and 10MP
- In 2012, the service sector is expected to grow 6.5%, the construction sector 7% and GDP is forecast to be between 5 and 6%
- Budget 2012 allocates RM232.8bil for Government plans, including RM181.6bil for management and RM51.2bil for development (181.6billion for Management!!!)
- RM29.8bil has been allocated for investment in infrastructure, industrial and rural development
- RM13.6bil has been allocated for the social sector, including education and training, welfare, housing and community development
- Total revenue for 2012 is forecast to increase 1.9% to RM186.9bil and the deficit to decrease to 4.7% of GDP from 5.4% in 2011
- The theme for Budget 2012 is “National Transformation Policy: Welfare for the Rakyat, Well-Being of the Nation” (We'll see)
- We will focus on accelerating investment and further liberalise 17 services sub-sectors, in places enabling 100% foreign equity.

- RP2 will be implemented in 2012, and it will be allocated RM98.4bil, to be split evenly between 2012 & 2013

- RP2 main projects will include the East Coast Highway from Jabor to Terengganu and road upgrades from Kota Marudu to Ranau
- RM18bil of the RM20bil PPP Facilitation Fund will be used for high impact projects, with RM2 billion for bumiputera entrepreneurs
- In 2012, the Government will allocate RM978mil to accelerate the development in five regional corridors
- The Treasury Management Centre will be established and offer incentives to develop M'sia as a competitive financial centre

- We will develop the Kuala Lumpur International Financial District, with incentives including income tax exemptions for firms
- Income tax exemptions for non-ringgit sukuk issuance and transactions will be extended for another 3 years
- To promote the development of Exchange Traded Funds products I-VCAP will provide RM200mil for Shariah-compliant ETFs
- Felda GVH will be listed on Bursa Malaysia by mid-2012 to raise funds for the company to become a global conglomerate. Felda settlers are expected to receive a windfall, and the amount will be announced before listing
- A RM2bil shariah-compliant SME Financing Fund managed by selected Islamic banks will be established in 2012
- A RM100mil SME Revitalisation Fund offering loans up to a maximum of RM1mil for entrepreneurs will be available from Jan 2012

- Full exemption of import duty and excise duty on hybrid cars and electric cars will continue to be given until 2013

- To promote tourism, the Langkawi Five Year Tourism Development Master Plan will be launched with an allocation of RM420mil

- The real property gains tax will be reviewed so it doesn't jeopardise the ability of low- and middle-income groups to buy homes

- The Malaysia Healthcare Travel Council will be privatised to promote and develop Malaysia as a healthcare destination
- Budget focuses on developing human capital, creativity and innovation and 2012 will be the National Innovation Movement year
- The Govt has allocated RM100mil promote innovation including the 1Malaysia Award (C1PTA) for innovative student inventions
- To enable SMEs to commercialise research products a Commercialisation Innovation Fund totalling RM500mil will be established
- RM50.2bil will be allocated to the education sector so that it can continue to develop talented, creative and innovative people (WOW! RM50.2billion!!!)
- RM1bil will be provided through a special fund for the construction, improvement and maintenance of schools
- We will abolish payments for primary and secondary education, making these free for the first time in our history
- Private schools registered with the Education Ministry will be given incentives including an Investment Tax Allowance
- The Govt will give tax exemption for contributions to educational institutions and all places of worship
- To encourage private sector human capital development incentives including a double deduction on scholarships will be offered
- Budget 2012 introduces a Rural Transformation Programme, so that rural areas can attract private investment and create employment

- RM5bil to develop rural infrastructure, including RM1.8bil to the Rural Road Programme & Village-Link Road Project

- RM500mil to expand the programme to supply clean water to the rural community in Sabah
- RM400mil to upgrade the water supply infrastructure in selected Felda areas
- To provide greater access to bank services for the rural population, Bank Simpanan Nasional will appoint agents in rural areas
- RM90mil for the Orang Asli for basic necessities, including the expansion of the clean water supply project. For the Orang Asli affected by the landslides at Sungai Ruil, RM20mil is provided for their relocation to new homes
- 600,000 Govt pensioners will benefit from an additional annual pension increment of 2%
- Civil servants get pay rise between RM80 to RM320
- Govt will extend the compulsory retirement age from 58 to 60 years old to optimise civil servants' contribution
- Civil servants will be offered tuition fee assistance for part-time studies, including 5,000 masters and 500 doctoral scholarships
- A special programme will be introduced for 175,000 army personnel who are not eligible for pensions
- RM3,000 will be given to ex-members of the special constable and auxiliary police as well as widows and widowers
- The Govt is mindful of the plight of the rakyat due to rising food prices and will take measures to address this
- The National Agro-Food Policy 2011-2020 will be launched and RM1.1bil allocated for the development of the agriculture sector
- In the spirit of “People First,” all subsidies, incentives and assistance totalling RM33.2bil will be continued
- 500,000 will benefit from KAR1SMA, which provides assistance to poor senior citizens and children and disabled people
- My First Home Scheme will be expanded to increase the limit of house prices from a maximum of RM220,000 to RM400,000
- Govt will identify areas in the vicinity of MRT, LRT and other public transport to be developed by PR1MA
- Govt will continue to implement the Program Perumahan Rakyat by building 75,000 units of affordable houses
- Govt will establish the Special Housing Fund for Fishermen to build and refurbish houses
- Healthcare will be allocated RM15bil operating expenditure and RM1.8bil development expenditure (Another potential leakage)
- Hospitals will be upgraded and constructed as well 81 rural health clinics upgraded and 50 new 1Malaysia clinics launched
- Hospital Kuala Lumpur - the oldest in Malaysia - will be upgraded to be the country's premier hospital
- Skim Amanah Rakyat (SARA) 1Malaysia will benefit 100,000 households with income below RM3,000 per month

- To assist taxi owners facing increased operating costs, measures will be introduced including tax exemptions on taxi purchases

- The National Legal Aid Foundation will ensure that every individual who is charged in court will be given free legal aid
- To assist the homeless, the Govt established a social assistance centre known as Anjung Singgah
- A training allocation of RM10mil will be provided for women to develop leadership and managerial skills
- To prevent cervical cancer, the Government will provide free Human Papilloma Virus immunisation nationwide
- MyCreative Venture Capital with an initial fund of RM200mil to be established
- RM15mil will be allocated to build 150 futsal courts to achieve the “One Court for One Mukim” target (This is insane.  RM100,000 per futsal court.  Wonder which Crony get this project?)
- To ensure the welfare of retirees measures including a tax relief on Private Retirement Schemes contributions are introduced
- Senior citizens aged 60 years & above will be exempted from outpatient registration fees in Govt hospitals & health clinics
- One-off assistance of RM500 to households with a monthly income of RM3,000 and below will be provided
- For those in private sector earning RM5000 and below, employers' EPF contribution will increase from 12% to 13%
- Book voucher worth RM200 will be given to Malaysian students in all private and public institutions of higher learning
- Civil servants will be given an additional bonus of half-month salary and pensioners RM500.

END OF SOURCE... 

For more info about this "BIASED" Budget:  Surf to:

2012 Budget Business Highlights:
http://www.bernama.com/bernama/v5/newsbusiness.php?id=618522

Why BIASED?  Here's my highlight:

* Tax deduction on expenses incurred for sukuk wakala to be given for a 3-year period from 2012. (WHAT IS SUKUK WAKALA? Islamic Bonds - thanks Google)

* Income tax exemption for non-ringgit sukuk issuance and transaction extended for another 3 years until 2014.

* Valuecap Sdn Bhd to provide RM200 million as seed monies for syariah-compliant Exchange Traded Funds

* Felda Global Ventures Holding to be listed on Bursa Malaysia by mid-2012 to raise funds and emerge as a global conglomerate
* A syariah-compliant SME Financing Fund totalling RM2 billion to be managed by selected Islamic banks by 2012

* Syariah-compliant Commercialisation Innovation Fund totalling RM500 million to be set up

* RM200 million allocated for the development of Bumiputera entrepreneurs and contractors through the Ministry of Rural and Regional Development

* Government proposes allocation for TEKUN to be increased to RM300 million

* Amanah Ikhtiar Malaysia will provide RM2.1 billion for micro financing to entrepreneurs, particularly for women. From this, RM100 million will be for Malaysian Indian entrepreneurs and another RM100 million for Chinese entrepreneurs (See.  >90% allocated to Bumis. How Unfair)

THAT"S ALL FOLKS! Thanks for having the time and patience to read this blog entry.

Govt reviewing National Automotive Policy

Friday, September 23, 2011

Govt reviewing National Automotive Policy
Friday, September 23, 2011

GURUN: The Government is reviewing the National Automotive Policy (NAP) to meet the needs of the customers and industry players, locally and overseas.

Deputy Minister of International Trade and Industry Datuk Mukhriz Mahathir said the Government was talking with industry players to obtain feedback on how to create a better environment to boost the growth of the industry.

"The industry is very important and it has recorded high earnings for the country.

"I'm confident that Budget 2012 will give more emphasis to the sector considering that it is contributing to the economic growth apart from creating high-income jobs for Malaysians."

Mukhriz said this to reporters after Naza Automotive Manufacturing's celebration of the production of its 150,000th unit here Thursday.

He said the local car sector has grown tremendously compared to the neighbouring countries in which Malaysia is not only an assembler but also a manufacturer.
 -Bernama

Govt to revise Hire Purchase Act

SOURCE

 PETALING JAYA: The Government has agreed to revise the recently amended Hire Purchase Act 1967 (HPA) following the brouhaha it created since its implementation barely two months earlier.

Following a meeting with the Domestic Trade, Cooperatives and Consumerism Ministry yesterday, the Malaysian Automotive Association (MAA) said the bulk of the amendments that were made to the HPA would be revised.

“The meeting went well. Most of the MAA’s requests were accommodated,” its president Datuk Aishah Ahmad told StarBiz when contacted yesterday.

“The changes will now make it easier for registrations and will take effect immediately. The Government will issue a circular on the changes next week,” she said.

The MAA earlier this month said local automotive players were not consulted over the amendments to the HPA which took effect on June 15.

Since its implementation, automotive players had been complaining that the Act had created confusion and delayed the car-buying process.

Aishah clarified that the new revision by the Government did not mean that the HPA would revert to its pre-June 15 amendment status.

“Some clauses will be amended while others will remain. Simply put, it makes car registrations easier.”

Among the contended issues when the amended HPA was implemented last month was the 1% maximum booking fee (based on the total selling price) which required car sellers to refund customers 90% of the booking fee if the deal were to fall through.

This meant that car sellers or dealers could not accept booking fees before the car buyer is served with a Second Schedule notice.

The Second Schedule notice can only be completed and served, in practice, on the car buyer usually after the hire-purchase loan application is approved.

The remaining 9% downpayment on the car can only be paid when the hire-purchase agreement has been prepared, with details such as the car’s chassis number included.

This meant the hire-purchase agreement can only be prepared after the actual car unit has been allocated to the dealership.

Auto players unhappy with Hire-Purchase Act

Auto players unhappy with Amended Hire-purchase Act

Auto dealers are doubtful whether the targeted 2.1 per cent increase in total vehicles sales to 618,000 units this year can be achieved, no thanks to the amended Hire-Purchase Act 1967, which although aimed at protecting the rights of consumers, was dampening bookings.

Several auto companies have complained that their daily bookings mainly for cars had declined by an average of 20-30 per cent since the amended Act came into effect on June 15.

Local automotive players, while appreciating the amended Act which upheld the rights and interest of consumers, are already feeling the pinch of flat sales which they expect will continue for the next few months due to new requirements under the Act.

At least three auto industry players Proton, UMW Toyota and Edaran Tan Chong, with a combined market share exceeding 50 per cent of the total industry volume (TIV), said they might revise the company's initial sales targets.

The amended Act, which came into effect a month ago, has resulted in cash flow problems for dealers, as the maximum booking fee of only one per cent of the total selling price of the car imposed on buyers, was too small compared with the previous requirement of 10 per cent.

To make matters worst, if the deal falls through, the buyer gets back 90 per cent of the booking fee, leaving very little for the dealer.

The Executive Director of Edaran Tan Chong Motor Sdn Bhd Datuk Ang Bon Beng said customers can change their mind to purchase a car even at the eleventh hour in view of the low booking fee.

In other words, there was no commitment to the deal, he said, adding that the burden of this uncommitted relationship has to be borne by car dealers or the principals of automotive companies.

Besides, customers only need to sign the purchase agreement when the car is produced and shown to the customer and if the customer opts not to buy the car, dealers again tend to lose out.

If the cars are not sold, then it causes disruptions to the supply chain as orders were already made for the cars.

As a result, car dealers were now recording a 20-30 per cent decline in bookings per day owing to the longer process required to get a car under the amended Act as buyers now have to deal directly with the bank which means increased documentation and processes.

Previously, a dealer would be able to handle the entire documentation and buying process of a vehicle. "We (Tan Chong) used to record about 200 bookings per day, but now it has dwindled to about 100 bookings only," Ang said.

Ismet

Moreover, due to the low booking fee, car dealers could not distinguish between genuine and phantom buyers, as many opted to switch to other cars at the last minute.

Dealers also complained a buyer could place phantom bookings at several different car dealerships without paying booking fees, resulting in a waste of loan application resources and inefficiencies for banks and car dealers.

President of UMW Toyota Motor Sdn Bhd, Ismet Suki, while concurring that the intention of the government to ensure consumers were not cheated and misled was noble and accepted by all industry players, however, felt there were weaknesses.

"The act is flipped, from the automotive perspective, as many segments are disrupted, namely manufacturing, production and the (vehicle) ordering system," he said.

Ismet said the longer documentation and paperwork process between banks, car dealers and customers have actually slowed down the delivery system as the process of finalising a vehicle purchase agreement took an extra 3-4 days.

The manufacturer and marketer of Toyota marques as well as the distributor of Lexus-brand vehicles also said that the main issue now was not selling the cars, but taking the risk of producing cars according to the order bank, without knowing whether the orders were genuine or would be met.

Proton Edar Sdn Bhd General Manager for Marketing Sidik Abdul Hamid said as far as the national car maker was concerned, the reaction to the amended Act from consumers was positive.

However, he said, the company was looking at revising downwards Proton's initial sales target of 173,000 cars as the number one automotive player has registered a 30 per cent drop in bookings since June 15.

Against such problems faced by car sellers, the government had last month promised to resolve their grouses over the implementation of the Act.

 -Bernama 

Related: 

Government open to reviewing act

Ministry to meet car industry reps on HP Act

The Star: Friday, June 24, 2011

SOURCE: 

KUALA LUMPUR: The Domestic Trade, Cooperatives and Consumerism Ministry will be meeting financial institutions and used car industry representatives to discuss issues on vehicle sales, resulting from the recently amended Hire-Purchase Act 1967.

Minister Datuk Seri Ismail Sabri Yaakob said he had instructed the ministry's legal and enforcement departments to do so.

Ismail

Regarding complaints of a slowdown in car sales since the amended Act took effect on June 15, Ismail said, “We will need to look at the causes of the problem.”

He reiterated that the Act was amended to protect the interests of consumers.

“Of course, with the amended Act, the documentation process (by financial institutions and vehicle dealerships) is more troublesome and takes more time,” Ismail said yesterday after officiating at a function concerning the Government's Tukar (transform) initiative, aimed at helping traditional sundry shops stay competitive.

To recap, car marque franchise holders and dealers contacted by StarBiz recently said they were worried about the possibility of trickling cashflow, a rise in booking cancellations and longer lead-time for completion of sales resulting from the amended Act.

Malaysian Automotive Association president Datuk Aishah Ahmad said on Wednesday that the amended Act had definitely impacted car sales and there were “teething” problems in the vehicle retail trade.

The Proton Edar Dealers Association Malaysia and Federation of Motor and Credit Companies Association of Malaysia have urged the Government to defer and review the amendments to the Act.

The Star Business, Wednesday, June 22, 2011


SOURCE:

Wednesday June 22, 2011

Car sales impacted by amended Hire-Purchase Act

By THOMAS HUONG and EUGENE MAHALINGAM
starbiz@thestar.com.my 

PETALING JAYA: Worried about the possibility of trickling cashflow, a rise in booking cancellations and longer leadtime for completion of sales, many stakeholders in the automotive sector say the recent amendments to the Hire-Purchase Act 1967 (HPA) will hurt the car retail trade. Already, there are complaints of a slowdown in sales.

While some car marque franchise holders and dealers said they were supportive of the amendments, which aim to protect vehicle buyers from losing their booking fees and deposits paid to unscrupulous sales advisors and car dealers, among other benefits, many automotive stakeholders have described the amended Act as “confusing” and “troublesome.”

One car dealership's general manager said the situation was “unbelievable” and the amended Act overly protected consumers to the detriment of car retailers.

The Proton Edar Dealers Association Malaysia (PEDA) and Federation of Motor and Credit Companies Association of Malaysia have urged the Government to defer and review the amendments to the Act.

Ready to roll: A new car undergoing inspection before rolling out. The recent amendments to the Hire-Purchase Act may result in car buyers placing ‘phantom bookings.’

 

PEDA president Armin Baniaz Pahamin claimed that Proton car sales had dropped by 50% since last week. Another car dealership's general manager claimed that the sales of a Japanese car marque had also dipped significantly.

“Normally, the Japanese principal allocates between 150 and 200 cars to its dealers each week. In the last few days, the allocation dropped to only 10 cars. This is because until we have firm orders (meaning booking fees), we will not order the cars from the principal,” he claimed.
Under the amendments, effective June 15, all used vehicles for sale will undergo Puspakom's 18-point inspection to ensure their roadworthiness.

Another issue of contention was the 1% maximum booking fee (based on the total selling price) mandated by the amended Act, which requires car sellers to refund customers 90% of the booking fee if the deal falls through.

Armin pointed out that unlike in the past, presently car sellers or dealers could not accept booking fees before the car buyer was served with a Second Schedule notice.

“The Second Schedule notice can only be completed and served, in practise, usually after the hire purchase loan application is approved.,” he said yesterday. The remaining 9% downpayment on the car can only be paid when the hire purchase agreement has been prepared, with details such as the car's chassis number included.

This means the hire purchase agreement can only be prepared after the actual car unit has been allocated to the dealership.

“Now, with the amended Act, a car buyer can place phantom bookings' at several different car dealerships without paying booking fees. This will result in a waste of loan application resources and inefficiencies for banks and car dealers,” said Armin.

He said car buyers would have to pay more visits to car dealers or banks to sign documents.
With the amended Act, car dealers would face cashflow problems as they would lack the booking fees and downpayments as working capital to pay for the cars ordered from their principals.

Armin claimed that the Government did not consult stakeholders before implementing the amended Act.
Meanwhile, car dealers and marque franchise holders have expressed unhappiness over the issue and said the car buying process now involved more paperwork.

“We are studying the implications on our current vehicle-promotion packages,” said an industry source.
One car dealership manager in Alor Setar said the amended Act made it tough for dealers to offer “zero downpayment” or “full loan” packages.

Perusahaan Otomobil Kedua Sdn Bhd managing director Datuk Aminar Rashid Salleh said while the company supported the amended Act, automakers that sold cars in high volumes might see sales impacted.
“We may not be able to efficiently register the vehicles on time for our customers, especially during the month-end rush.

“This is due to the longer process flow that requires detailed paperwork between the banks, Perodua and our customers.”

RELATED ARTICLE:

http://star-motoring.com/News/2011/Amended-Act-expected-to-hurt-car-sales.aspx

RON97 price dropped by 10 sen to RM2.80/L...

Effective 12am Today (Thursday) 16 June 2011...

For the first time since RON97 was put on a ‘controlled market float’ in July last year, the price of the higher octane fuel has been reduced by 10 sen from RM2.90 per liter to RM2.80 per liter. The last change was on the 5th of May, where it was hiked 20 sen. The ‘mainstream’ RON95 fuel remains at RM1.90 per liter, while both petroleum diesel and B5 biodiesel (currently only available in Putrajaya) are sold at RM1.80 per liter.

JEFF LIM'S OPINION:  Huh!  Only 10 cents?  For crying out loud, What's the point?  

Motorists to bear cost of testing vehicles

The Star, Wednesday, June 15, 2011

Below: Khoo

PETALING JAYA: Car owners, not car dealers, will bear the costs of Puspakom’s Transfer of Ownership (B5) and Hire-Purchase (B7) inspections, the Federation of Motor and Credit Companies Associations of Malaysia (FMCCAM) said.

Secretary-general Khoo Kah Jin said motorists wanting to sell theirvehicles to used car dealers have to pay for the B5 and B7 inspections first.

“We will evaluate the car according to Puspakom’s inspection results,” he told The Star yesterday.   However, he said the federation remained totally against the B7 inspection costing RM60 which is to be enforced from today, deeming it “an unnecessary cost.”

“The four-point B5 inspection is sufficient to test a vehicle’s roadworthiness. Sellers can always go to a trusted mechanic for additional free professional advice,” he said.

On Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob’s statement last week that used motorcycles would be exempted from the B7 test due to the small number involved, Khoo questioned why this was the case if safety was the main issue.

Meanwhile, FMCCAM and Gerakan Youth will submit a memorandum to the Prime Minister’s Department and the ministry today requesting to delay the implementation of the B7 inspection.

According to the amended Hire-Purchase Act, motorists wanting to sell their vehicles need to send the cars for a comprehensive 18-point inspection by Puspakom before entering into a hire-purchase agreement.

The inspection will include computerised testing for smoke emission, brakes, side-slip and suspension.
 

Related

» Puspakom readies for influx with more inspection lanes

Foreign vehicles to be barred from filling up on RON95 petrol and NGV

 Tuesday, June 14, 2011 9:05 PM

KUALA LUMPUR: RON95 petrol and NGV fuel will be banned from being sold to owners of foreign-registered vehicles from tomorrow, the Ministry of Domestic Trade, Cooperatives and Consumerism announced Tuesday.

RON95 petrol would however be allowed to be sold to those having foreign-registered motorcycles as an exception.

Following the move, the requirement to produce Mykad by Malaysians using foreign-registered vehicles for buying RON95 petrol at all petrol stations throughout the country had been withdrawn, the ministry said in a statement here.

On Aug 1 last year, a directive to ban sales of RON95 petrol to foreign-registered vehicles nationwide was imposed with the exception given to Malaysians who could produce the Mykad for verification.

The ministry in the statement clarified that the government had received feedback of leakages due to abuse of of the Mykad for purchasing RON95 petrol.

According to the ministry, petrol station operators at border areas had also complained of difficulties in controlling and ensuring the directive on the petrol ban was fully complied with.

"On this issue, the government is of the view that the ban on all foreign-registered vehicles from buying RON95 petrol and the withdrawal of the condition that allowed purchase of RON95 petrol on producing the Mykad throughout the country with the exception of motorcycles, is reasonable," the ministry said.

The ministry clarified that the ban also covered NGV fuel following the discovery that 311,000 litres of NGV fuel were sold to foreign registered vehicles each year.

"At the rate of the current subsidy, the NGV fuel subsidy enjoyed by foreigners amounted to RM360,000 each year," the statement added.
 -Bernama

Malaysian Petrol price vs...

FOOD FOR THOUGHT!

Malaysia, Petrol : RM 2.90
Malaysia pengeluar ke-27 di dunia

Qatar, Petrol : RM 0.75
Qatar pengeluar ke-22 di dunia 

Oman, Petrol : RM1.00
.........Oman pengeluar ke-28 di dunia 

Egypt @ Mesir, Petrol : RM 1.06
Egypt pengeluar ke-29 di dunia 

Iran, Petrol : RM 0.35
Iran pengeluar ke-8 di dunia
 

Terima Kasih Muhyidin~! RAKYAT DIDAHULUKAN
Tanhiah Najib Razak
Kerana berjaya memperbodohkan rakyat yang dah semakin cerdik...

Fwd: Car Prices in M'sia

Fwd: Car Prices in Malaysia




This is a good example of how BN is helping the ordinary Malay population. If i was a Malay i would say no thanks, i don't need your help.

I know you are all aware of the reasons why our car prices are artificially jacked up. This is just another reminder for you to resend to as many as possible to wake up as many as possible. This artificial price can't last forever or else Malaysia's economy will collapse! So stop buying new car and vote to change the corrupted  govt......

 
Toyota Camry 2.4L for RM69,396.00 (and not RM170,000.00)
 
Toyota Altis for RM46,000 (and not RM112,000.00)
 
Honda Jazz for RM36,000.00 (and not RM108,000)
 
Want more?
 
Read the following forwarded article.......by Syed Akbar Ali.  
And know the actual prices of your dream car.
 
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 RM530,000.
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 seharga dengan 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 a sad 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.

Posted by Syed Akbar Ali at 5:49:00 PM

RON97 fuel – RM2.90 per liter as of 5th May 2011

According to Malaysiakini, the price of RON97 fuel will be increased to RM2.90 per liter at midnight today, up 20 sen from the previous price of RM2.70 which was on the 1st of April 2011.
If this trend continues, the price of RON97 would probably hit over RM3.50 per liter by the end of the year.

This is the fifth monthly increase in a row since December last year. The margin of increase has also been going up, with the first three hikes being only 10 sen, with subsequent increases being 20 sen.
RON95 and diesel remains unchanged for now.

Govt suspends plans to scrap old cars

 KUALA LUMPUR: The government does not plan to dispose of all vehicles over 15 years old because it does not yet have a suitable mechanism for doing so, Deputy Transport Minister Jelaing Mersat said.

The government would also have to get the views of non-governmental organisations and the public before disposal of all old vehicles could be enforced, he told the Dewan Negara.

Although use of these old vehicles was allowed, the road transport department and police were ensuring that they were road-worthy, he said when winding the debate on the motion to thank Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin for his royal address on Tuesday.


 -Bernama

Tata keen to work with Proton, says DPM Muhyiddin

Tata keen to work with Proton, says DPM Muhyiddin

March 10, 2011, By Danny Tan  

SOURCE: PAULTAN.ORG (Click on the Title - in Blue, underlined for the link to source).

Deputy Prime Minister Tan Sri Muhyiddin Yassin, who is on an official visit to India, has revealed that Indian carmaker Tata Motors has expressed interest to enter the Malaysian market. The maker of the world’s cheapest car plans to do this by working with national carmaker Proton.

“Mr Tata (Ratan Tata, chairman of Tata Group) is keen to work with Proton again. About seven or eight years ago there were some joint discussions to manufacture cars but nothing came out of it. Now our automotive policy is more liberal and there are new opportunities,” Muhyiddin said.

“It’s now up to the Proton management to study this proposal and whether a car like the Nano can be brought into Malaysia. Perhaps we can also come up with a kereta rakyat costing about RM20,000, modelled after the Nano,” the DPM suggested to Malaysian journalists in Mumbai.

“He felt there should be some synergy because they had been in the automotive industry for a long time. He can bring his technical team to discuss with Proton or Perodua,” added Muhyiddin, although we’re not sure if Perodua, which is part owned by Daihatsu and has its own compact car plans, will be interested in such a development.

A cheap Tata Nano based kereta rakyat, anyone?

 

Government To Maintain Present RON 95 And Diesel Prices

Government To Maintain Present RON 95 And Diesel Prices

KUALA LUMPUR, Feb 24 (Bernama) -- The government will maintain the current fuel price for RON 95 at RM1.90 and diesel at RM1.80 despite the escalating global oil price, Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said on Thursday.

It will instead discuss with the Finance Ministry for alternatives to cushion the increase, he said.

"The government will retain current prices and look at other options or alternatives even if the government's load increases.

"So far the situation can be handled without raising the price of RON 95 and diesel," the minister told reporters after announcing Bank Rakyat's annual financial results here.

He said the budget allocated for subsidy this year was RM10.3 billion and if the price trend continued, this could reach up to RM14 billion.

The RM10.3 billion subsidy covers petroleum, RON 95, diesel, LPG gas, sugar, rice and cooking oil.

Last December, the prices of RON 95 and diesel price were each increased five sen to RM1.90 and RM1.80 per litre respectively.

On the alternatives being looked at, he said there would be a review on the petrol and diesel quotas received by certain parties.

Asked when both ministries would finalise the discussion, he said decisions would be made as soon as possible.

"It won't take long. The more time is taken, the higher the amount of subsidy the government would have to bear," he added.

He said as an importer of food products, the country would also have to bear the increase in the prices of imported food products.

Commenting on whether prices for other subsidised products would be increased since the fuel price would not be hiked, Ismail Sabri said the government was not looking to increase the prices of other subsidised products.

"Effective Feb 1, subsidy has been stopped for all factories producing food products and drinks using 500 metric tonnes of sugar a month.

"The government would be able to save RM128 million," he said.

-- BERNAMA

RON97 up 10 sen/L at midnight, sources say

RON97 up 10 sen/L at midnight, sources say
Malaysian Insider, January 31, 2011

RON97 is subject to a managed float. — Reuters pic

KUALA LUMPUR, Jan 31 — The price of RON97 petrol will be increased by 10 sen to RM2.50 effective midnight, according to industry sources.

The price of the premium fuel was last raised on January 4, also by 10 sen.

The government announced on July 16 last year that the price of RON97 will be subjected to a managed float to reflect the price of oil on the global market.

The latest increase will, however, not affect other fuels.

The base grade RON95 petrol remains at RM1.90 per litre, diesel at RM1.80 per litre, and LPG at RM1.90 per kg. The government currently subsidises 30 sen of the RON 95 fuel cost.

The Najib administration has opted to gradually slash subsidies as a way to reduce government deficit.

The government’s Performance Management and Delivery Unit (Pemandu) had said last year that savings from fuel subsidy cuts amounted to about RM3 billion last year. This number will rise to RM14 billion this year, RM21 billion in 2012, RM29.5 billion in 2013, and RM35 billion in 2014.

Airbags compulsory for all vehicles from 2012

Airbags compulsory for all vehicles from 2012
BERNAMA January 21, 2011

Research shows that most fatal accidents involved front passengers who did not use the safety belt and did not have an airbag.

RANTAU PANJANG: All vehicles, except four-wheel drives, will be required to be fitted with airbags from next year, Transport Minister Kong Cho Ha said today.

He said the measure was to reduce risks of death in road accidents.

The government was particularly concerned with fatal accidents due to inadequate safety equipment, he told reporters here after launching the road safety campaign in conjunction with the coming Chinese New Year.

He cited research done by the Malaysian Institute of Road Safety which found that most fatal accidents involved front passengers who did not use the safety belt and did not have an airbag.

Kong said his ministry would ensure that vehicles manufactured in the country and the national car were equipped with safety airbags before the new regulation was enforced.

He said there would be no problem with imported vehicles as most of them came equipped with safety bags.

– BernamaTr

BERNAMA: Government To Help Bumiputera Approved Permit (AP) holders

BERNAMA AUTO NEWS: Government To Help Bumi Businessmen Hit By Stoppage In AP Issuance By 2015 KUALA LUMPUR, Jan 13 (Bernama) -- The government on Thursday assured Bumiputera Approved Permit (AP) holders, who will be affected by the stoppage in AP issuance by 2015, that they will be given assistance under the special fund set from the RM10,000 fee charged for each AP issued. Deputy Minister of International Trade and Industry Datuk Mukhriz Mahathir, who gave the assurance, said the government established the fund to help develop Bumiputera entrepreneurs in the automotive industry and related businesses. "We charged RM10,000 for every AP issued to set up the fund and the money will be used to ensure a smooth and orderly shift of Bumiputera entrepreneurs to other business sectors. "By having the fund, we hope to execute the shift orderly and smoothly," he told reporters after officiating at the soft launch of the Muslim World Biz 2011 exhibition. On claims by the Association of Malay Importers and Traders of Motor Vehicles Malaysia (Pekema) that 70,000 workers in the automotive industry would lose their jobs if the AP policy on imported vehicles was enforced by 2015, Mukhriz said they must show proof to the claim. "They need to prove that statement because we have our own figures. We have been helping them for a long time, some about 30 years already. "I think they will benefit greatly from this government policy. At this time, there are many more Bumiputera companies who wished they have the APs enjoyed by the 98 companies (selected by the government). "There are about 160 companies eligible to get APs but the government will stick to the 98 companies and will protect them until 2015," he added. -- BERNAMA

ARTICLE: Streamlining the Malaysian Civil Service and Bureaucracy

Before I begin the article I'd like to give a personal comment.  What is the point of Subsidy Cuts on Fuel, TOLL, Food items, Healthcare etc when we have the HIGHEST per capita Civil Servants in the WORLD.   I'm talking about 1,000,000 (yes, 1 MILLION), ie. 1:25 (1 Civil servants PER 25 Malaysians).

Article 132 of the CONSITUTION OF MALAYSIA stipulates that the Public Service consist of:

• the General Public Service of the Federation
• the State Public Services
• the Joint Public Services
• the Education Service
• the Judiciary and the Legal Service
• the Armed Forces

For all intents and purpose, Statutory Bodies and the Local Authorities are also considered as part of the Public Service. This is because both these autonomous bodies resemble the Public Service in many respects since they adopt the procedures of the Public Service pertaining to appointments, terms and conditions of service and the remuneration system. Besides that, their officers and staff also receive pension and other retirement benefits similar to the employees in the Public Service.

The Irony is 95% of these 1,000,000 are Bumiputras.  Only 5% are NON Bumis (ie. 50,000).  But I'm not picking about this figures.  It's just that it's UNHEALTHY to have 1,000,000 Civil Servants!  During a visit to Immigration, I was shocked to see SO MANY STAFF (about 60 of them inside) wondering around there YET ONLY 5 out of 20 counters (ie. 1/4) opened to serve us!  What's the rest of the staff doing?  Minding their own business I guess...  Some can be seen Chatting to one another, one of them YAWNING Away, Few of them goes ONLINE, few of them READING NEWSPAPERS and ETC...  Clearly, this is a WASTE of our TAXPAYERS MONEY to Employ them...    Also, the 1.2BILLION+ ringgit spent to Construct the NEW PALACE!  How about Billions spent to Sponsor "1 Malaysia LOTUS F1 Team".  But these are another stories which I will NOT Dwell further...  CLEARLY, something needs to be done to "REDUCE the REAL SUBSIDY".

Back to this article, the article was WRITTEN in 2007.  The NUMBERS might INCREASE THIS YEAR!


Streamlining the Malaysian Civil Service and Bureaucracy

Written by johnleemk on 3:45:58 am Feb 25, 2007. 

One million. That's the number of civil servants we have. One million people living off a government paycheck. (And, if they're lucky, the occasional bribe.)

You tend not to think about government employees most of the time. After all, they're generally invisible, despite the important roles they play. The only time you might pay them any heed is when you get stopped by a policeman looking for some easy money, or when some bloke at the immigration department refuses to renew your passport over some minor paperwork issue.

But, still, one million is a huge number! That's one civil servant for every 25 Malaysians! To put this in perspective, the Indian state of Andhra Pradesh employs about one million public servants. The population of Andhra Pradesh, however, is in the range of 75 million people — and even then, it's considered to have a disproportionately big civil service.

Why are we so awash in civil servants? What's the cause of this oddity? I think a big contributing factor is the government's reluctance to create a class of discontented and unemployed malcontents. Their solution, then, is to employ anyone who is rejected by the private sector.

This in turn is probably the cause of our infamously inefficient civil service. And, if the government's actions are anything to go by, things will be getting worse as we go along.

Last year, in response to the problem of unemployed graduates, Deputy Prime Minister Najib Tun Razak declared that the civil service would be picking up the slack — an explicit admission that the government employs the worst of our graduates to keep them from turning against the government at the ballot box.

Around the same time, Parliament was informed that 70% of public university graduates are unemployed. Some people, including the now-famous Tony Pua (a probable candidate for a Parliamentary seat on the Democratic Action Party ticket in the next election), expressed incredulity, and suggested the statistics used must be flawed.

Whatever the case may be, the fact is that a lot of the graduates our public universities unleash on the country are not employable. And these unemployable people find employment in the government.

If the government is really serious about expediting efficiency, what it ought to do is begin retrenching these one million civil servants in stages. Offer them a generous pension comparable to their paycheck — the increased efficiency from a streamlined bureaucracy would make it worth our while.

The government could also do as one East European country did recently while downsizing its civil service. That country offered capital to any former civil servant who wished to start a business. Small and medium enterprises are the backbone of many economies, and it makes sense to turn former civil servants into entrepreneurs.

Of course, this would all be reliant on a government with the political will to dismiss inefficient civil servants, and on a government with the spine to enforce loans. From past experience, this is not the kind of the government we have.

So, till the day we change our government, this is what we will be stuck with — a behemoth of a civil service that exists only to provide a wage for the people not worth employing.

END OF ARTICLE:

SOURCE:
http://www.infernalramblings.com/articles/Malaysian_Government/149/

That's all folks, thanks for having the time and patience to read this blog entry

ARTICLE: Subsidy cuts without pay rise = tax hike

THE STAR BUSINESS: Thursday July 22, 2010

Subsidy cuts without pay rise = tax hike

Making a Point - By Jagdev Singh Sidhu

IT’S been roughly a week since subsidies were cut marginally in Malaysia and judging by the reaction people have to it, I guess the public has taken it in stride.

After all, the increase in the cost of fuel (increase of 5 cents per litre across the board with RON97 subject to FLOAT Mechanism), which is ultimately the biggest cost element among the other goods that saw prices rise, was small and well within what people can stomach.

The price increases in sugar and cooking gas were small when looking at what an average household would spend monthly to consume and use such goods.

The way subsidies were removed this time around was also properly handled. The message of why that needed to be done was clear.

Conversely, editorials and comments have stressed the point that the increase in government revenue of RM750mil from the subsidy rationalisation, along with how the Government spends taxpayer money, should also be more disciplined to avoid wastage and should be on projects, goods and services that have tangible benefits to the general population.

So far so good but the reality of things is that the subsidy cuts announced represent the first wave of what could be a series of cuts that would bring down the overall subsidy bill of the Government.

It’s quite likely too that future subsidy cuts could see the price of fuel, depending on the price of fuel internationally, and electricity rise. Along with that, sugar, flour, cooking gas, cooking fuel and maybe even other goods, services and utilities could also see a price increase.

And while the general population, especially the middle-class, has been quiet about the first cuts, there could be grumbles if the price increases do not correspond with the pay packet they bring home.
The reason for that is there is a feeling that urban inflation has grown quite a bit in recent years and that wages in Malaysia have not increased in keeping with the rise in the prices of consumables or even assets.

The increase in starting salaries for jobs in many industries today pales in comparison with how, say the price of a house, car or processed food has risen over the past years or even decades.  I know employers will say that salaries would have to reflect the productivity of employees, the growth of which has in recent years been poorer compared with how Malaysians in yesteryears used to attain.

There are also suggestions that the current labour laws, which make it difficult for employers to fire unproductive employees, are also an impediment to employers offering more lucrative salaries for their workers.

Changes to such laws are reportedly being looked at but there is still no guarantee wages would rise after that.
Unless salaries rise as a result of a more efficient marketplace brought about by the removal of subsidies and laws, the price hikes from future subsidy cuts would be viewed as a tax hike. And that could well raise the blood pressure of a lot of people.

·Deputy news editor Jagdev Singh Sidhu is now looking at a substantially smaller pay packet for the next few months, not from the subsidy cuts but the taxman.
 
END OF ARTICLE...

SOURCE:

http://biz.thestar.com.my/news/story.asp?file=/2010/7/22/business/6710844&sec=business


Related Stories:

Penjanabebas: IPPs don’t get financial benefit from gas subsidy

Minimal impact seen from subsidy cuts

Analysts expect subsidy cut in August

That's all folks!  Thanks for having the time and patience to read this blog entry.