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| Preve-overpriced? |
The Car Conundrum is the most befitting theme for this post.
Is Proton worth saving after all these years of sub-standard ouputs?
What about Perodua?
The joke of the power windows has been a thunderous guffaw and still is, with the life-long warrantly attached to it for new sales for Proton.
The Gen 2 was a first rate disaster with that prototype CAMPRO engine; its lack of torque and self-shifting gears when you least want it to happen.
The Preve which was immobilised on a test-drive along the roadside for all to see;cheap upholstery and all. Good vibrations?
Woes upon woes has beset Proton.
Now it has gone private and put under the wings of Syed Mokhtar's DRB Group. It is no longer the people's car even though you want to claim it as the national car. Should the car still be protected since it has become private investment?
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| World Standard |
What about Perodua?
Despite that foreign advertisement of a person sledgehammering a Kelisa to a pulp, the perception is it is that better buy. Sales for the compact Myvi continue to soar and so is the vivacious Viva. Problems are few and re-sale value is good.
There are two good dictums to be used as rules of thumb.
The first one is:
Where you see water, you see Chinamen.
The second one is:
If the Chinaman buys it, it must be good.
So, the Chinamen bought Perodua vehicles and not many prefer the more politicised Proton.
That is the screaming difference!
Now that the issue of slashing excise and import duties has become a bone to chew on for the next General elections,what has the learned economists to say to this?
In today(30 July 2012), we have some luminaries airing their views.
Michelle Chun reports:
"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 the Sun today.
Navaratnam was commenting on the statement by Minister in the Prime Minister's Department Tan Sri Nor Mohamad Yakcop on Saturday that the reduction of car excise duties and prices would result in economic instability and increase in bankruptcy cases.
"This is a delicate matter that calls not for ad-hoc solutions or quick fixes, but rather comprehensive studies and professionalism.
"If not handled properly, it will have long-term implications on the global innovative and competitive position of the local car industry, and on the economy as a whole," Navaratnam said.
Nor Mohamad, who heads the Economic Planning Unit, made the statement following PKR strategist Rafizi Ramli's promise that car excise duty would be reduced if the opposition won the 13th general election.
Malaysians currently pay between 75% and 105% in excise duties for motor vehicles manufactured in the country, excluding import duties (for imported cars) and sales taxes.
Nor Mohamad said the government collects around RM7 billion annually from these excise duties.
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.
Wan Saiful added this showed it was dangerous for a government to be involved in the setting up of businesses, as it would then be obliged to protect the businesses' interests.
"This would stunt economic growth as the economic environment would not be a competitive one," he said.
However, Wan Saiful said excise duties should not be removed overnight, but over time, or there may be repercussions, especially on the second-hand car market.
These comments are fair.
Will the government slowly dismantle that dastardly wicked excise and import duties on cars to free Malaysians to have a more decent life?
The forthcoming general election will be that watershed.
It can be a kingmaker or king killer!
