KUALA LUMPUR: Vehicle selling prices in Malaysia are determined by market forces rather than government control according to the Ministry of Investment, Trade and Industry.
The ministry explained that the government provides various incentives and tax exemptions for locally assembled vehicles through the Ministry of Finance.
These incentives aim to encourage the use of locally produced components from vendors while promoting quality investments and research activities.
Manufacturers can offer competitive prices for the local market compared to fully imported vehicles through these incentives and tax exemptions.
MITI responded to Senator Datuk Ahmad Ibrahim’s query about reviewing prices of Malaysian-made cars perceived as too expensive.
The ministry noted that some manufacturers produce affordably priced vehicles despite concerns about long-term hire-purchase loans.
Perodua produces its ‘Rahmah’ category vehicles priced affordably at 22,000 ringgit excluding insurance to enable more people to own cars.
Proton offers the Saga model priced under 40,000 ringgit as another budget-friendly option for Malaysian consumers.
The government hopes this approach allows people to choose vehicles fitting their financial capabilities to avoid heavy burdens.
This clarification came through a written parliamentary reply posted on the Dewan Negara website today. – Bernama
