ARTICLE: HP Interest rate up again!

Saturday April 24, 2010

Higher loan rates will hit car sales

By YVONNE TAN and EUGENE MAHALINGAM
starbiz@thestar.com.my

PETALING JAYA: Interest rates on car loans have increased by an average of 0.25 percentage point for national cars and 0.7 percentage point for non-national makes since the overnight policy rate — the benchmark interest rate which determines banks’ lending rates — was revised upwards by 25 basis points to 2.25% in early March.

Dealers said they were already feeling the impact.

New car registrations reached 56,139 units last month, 25% higher than the same month last year, as buyers locked in their purchases before the widely-anticipated interest rate hike.
The real impact on car sales figures would probably be seen from April, according to industry players.

“We are expecting an adverse impact on sales from the recent hike,” Proton Edar Dealers Association Malaysia president Armin Baniaz Pahamin told StarBizWeek.
“Already, national cars have higher interest rates than non-national cars before the hike.”
This is traditionally the case because the credit risk in the national car segment is perceived to be higher than in the non-national car segment as the former tends to target the lower to middle-income earners.

OSK Research in its recent report on the sector noted that dealers had fully capitalised on the recent OPR rate hike in making their earlier sales pitches. “This caused a rush as buyers locked in their orders before the OPR was increased in early March,” the research outfit said.
Proton and Perodua car loan rates had been adjusted to 3.75% for loan tenures of five years and below, 3.9% for six to seven years and 4% for eight to nine-year loans, according to major car dealers. Previously, they ranged from 3.5% to 3.75%.

With the new rates, for example, a person looking to purchase a RM40,000 Perodua car with a five-year loan tenure (at the new rate of 3.75% per annum) will have to pay RM791, or RM8 more, per month.

This goes up to about RM20 more a month for a longer-term loans.
As for new non-national makes, a dealer with Kah Motor Co Sdn Bhd which distributes Honda cars, said hire-purchase rates for new non-national cars had been raised to 3.25% for loan tenures of five years and below, 3.4% for six to seven years and 3.5% for eight to nine-year loans.

Before, hire-purchase interest rates were in the range of 2.4% to 2.8%, he said.
“There is some impact on sales so far. We see some individuals holding back purchases,” the dealer added.

Honda’s market share fell last month on weak sales, sliding 5.8% year-to-date as sales halted largely caused by the impending launch of its new CRV towards the end of this month, OSK Research said.

The Star: Monday April 19, 2010,

Do remember that speed kills

IT WAS just a month ago that I spoke to my friend Rizal. He was very excited about his new ride, a Yamaha R1 that has a massive 180 horse-power. It is also a new model.
I was a little jealous of him getting to ride this beauty. Nevertheless, I was happy for him as a fellow superbiker.

Ever wondered what riding a 180 horsies bike, weighing a little more than 180kg, feels like?
Let’s compare the R1 to a Formula 1 car. Ferrari’s F1 car is rated at 800 horsepower, and weighs around 800kg. The power to weight ratio of a Formula 1 car is a massive 1,000 horse-power per tonne.

Thus, both the Yamaha R1 and the Ferrari Formula 1 car have a similar power to weight ratio. Which means what a Formula 1 car driver feels upon acceleration, an R1 rider similarly feels it too. We are talking about G force here.

But the similarities end here. A Formula 1 car cannot be bought from showrooms, but a superbike can. A Formula 1 car can only be driven by a driver possessing a super licence sanctioned by the FIA, the world governing body.

As for a superbiker, all he needs is a full “B” licence. To get it, all the rider needs to do is to prove to JPJ (Road Transport Department) that he is capable of braking effectively, making a figure eight and showing some hand signs when turning.

It is a far cry comparing a Formula 1 driver and a superbike rider in terms of qualifications. But they both handle similarly powered vehicles.

I am not feeling sour here or questioning my friend’s capabilities in handling his bike.
But the fact is this: 1,000 horsepower per tonne bike of his cost him his life, and his wife’s, too.
His wife was riding pillion when they crashed on the North-South Expressway somewhere around Air Keroh in Malacca. They died on the spot.

I was devastated when I heard about this as both husband and wife were great people and good friends.

Imagine the devastation caused to their families and to their daughter who is only three years old.

For those considering getting a superbike or who already own one, please remember that sometimes we may forget that riding a superbike is close to driving a Formula 1 car.
These vehicles demand our absolute respect.

The slightest mistake may cost you your life.

So besides making sure your bike is shiny and ready for that next outing, remember that speed kills.  It will take us superbikers less than four seconds to break the speed limit of 110kph. Absolute respect for your bike is a priority.

While exhilarating in the sound and shine of the bike, like a knight in shining armour heading against the wind and defying the laws of physics, please remember “it is better to be late than never.”

By ABDUL HALIM CHEW,
Kajang.

Fancy a pre-owned Ferrari?

The Star Motoring: Tuesday, February 23, 2010

Fancy a pre-owned Ferrari?

 

Posted by: Anthony Lim

 

Naza Italia has started a Ferrari pre-owned programme in Malaysia, and the workings of the approved used car division is approved by Ferrari and is in-line with the Prancing Horse’s strict and thorough guidelines.

Under the programme, all Ferrari cars purchased via the previous franchise holder, Next Car, and Naza Italia will qualify for Ferrari’s Power Warranty, and is aimed at offering a powerful and consistent proposition to Ferrari customers.

All cars under the programme undergo a 190-point check that is in line with the Ferrari Approved Vehicle Specification Sheet, Template Content Guide and Functionality Guidelines. This multi-point inspection by the factory-trained technicians at Naza Italia include the 190 individual mechanical, electrical, bodywork and interior checks, along with a full road test.

Defects are repaired or replaced, using Ferrari genuine parts while a written vehicle evaluation report is presented to the future owner for a review and discussion. In addition, pre-owned cars purchased from the Ferrari pre-owned programme will enjoy a 12-month warranty as well as roadside assistance for the same period.

END OF SOURCE.

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

SOURCE:

1) http://star-motoring.com/blog/permalink.asp?id=1005

INTERVIEW: Still in the dark over system

The Star, Sunday January 17, 2010

Still in the dark over system

By SHAHANAAZ HABIB

shaz@thestar.com.my

The Government’s plan to impose a two-tier pricing mechanism for petrol by May 1 has given rise to many questions but answers are hard to come by. Just how will the mechanics be worked out?

THE Government wants to cut down on subsidies it pays on petrol by implementing a two-tier pricing system by May 1. Domestic Trade and Co-operatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob says the principle has been agreed upon but details are still being worked out. He has asked the public to give him their views via his Facebook.

The move to reduce subsidies, including for sugar and other consumer products, is a very sensitive and difficult process, he admits.

OTOREVIEW'S NOTE: Here's an Interview between, The Star Reporter, Shahanaaz Habib and Domestic Trade and Co-operatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.  ENJOY:

Q> People want to be informed early about the new fuel pricing mechanism so that they can be prepared.
A> I agree but we have not fully settled on the exact mechanism. It’s still under discussion, that’s why we are still unable to announce details at this moment.
What I was able to announce is the principle of the subsidy. Wherever you go in the world, subsidies are targeted at needy groups. In the case of petrol for our country, the poor or the middle income group.

But now everyone is getting the petrol subsidy, including foreigners, which means the Government is subsidising citizens, non-citizens and the well-to-do. This is wrong. The principle of the new mechanism is that the subsidies will be given to only the targeted group.

Filling up: Details on the two-tier fuel pricing system are still being worked out.

Q> Since the Government is still discussing the mechanism, maybe it won’t be implemented in May?
A>That May 1 date is still on target but it will only be for the peninsula. For Sabah and Sarawak, the implementation will be later. The people there use four-wheel drive vehicles to get around and most are about 3,000cc. Even the poor are forced to use that because of the terrain. We will eventually have a mechanism for them.

Q> How can people give their feedback constructively if they are not given some details of the proposal?
A>But they are already doing that now. Even though no one is certain about what is going to happen on May 1, the debate and discussion have already started. Even the principle of the subsidy is being questioned. Even the rich are thinking they should be entitled to the subsidy.
We are listening to the opinions and suggestions.

Q>Is the Government looking at engine capacity or the make of the car to determine who gets the subsidy? What engine capacity are you looking at?
A>With cars, the best is to look at engine capacity. It’s wrong to go by the brand because that would be perceived as discriminating against a make. You can’t say whoever owns a BMW is not entitled to subsidised petrol; BMW would be mad at us. That’s why engine capacity is the best consideration. As for the engine capacity, we will announce later.

Q> How about expensive cars like the Mini Cooper, which has a small engine but cost over RM200,000?
A>There are also some kampung folk who use very old Mercedes Benz, which is very cheap – costing about RM10,000 – but the engine capacity is big. Whatever we do, we can’t cover 100%. There are bound to be some who won’t be covered. This is true of whatever policy we make; it can’t be 100% perfect. - Has the CHEEK to say  this comment, WHAT A DOOFUS! ED.  There will definitely be some who are not satisfied or who terlepas (escape).

Q> Will there be two different pumps at petrol stations?
A>We are still working out the mechanics but definitely not two pumps. We are looking at pumps having two prices or perhaps just having the market price on it but those entitled to the subsidised price get to pay less and get receipts for it.

Q> Who decides on the engine capacity at the petrol station?
A>We are considering putting a chip into our MyKad to register the car that’s entitled to the subsidised petrol. Each person is eligible for subsidised petrol for only one car. It’s not fair if you have 10 (small engine capacity) cars and you get subsidies for all 10. If the car is registered to different people, for example the wife, son or daughter, then each is eligible to the subsidy; one person per car. Children have to be 18 or above because, to own a car, you must be at least 18.

Q> So we won’t be handing our MyKad to some foreign petrol attendant to check?
A>I don’t think that will be the case because these days we are IT savvy. It’ll probably be swiping, like you do with the credit card. It will be a convenient system.  - What can I say!?? ED


Q> People who own big cars grumble that they already pay high duties for the imported cars. They are also paying high road taxes, so why shouldn’t they enjoy subsidised petrol because they are taxpayers too?
A>The principle of the subsidy is that those entitled are the poor and middle income group. But we are listening to all views and there have been so many because everybody has been talking based on presumption.

Q> But people argue that it’s better to disclose some details of what the Government is proposing so that they can give their views rather than speculate.
A>I can’t give details because we are still discussing (them). In due time, the Government will announce the engine capacity and whether there is a cap on how many litres per person per month. If there is no cap per car, people will abuse it. They will use their Mykad to buy as much petrol as possible, transfer it into a drum and then sell it to those who don’t qualify for subsidies. So the question of how many litres will be announced later. MAN!  This guy speaks without WISDOM! - Ed.

Q> How about those who travel outstation for work or those in big cities who travel long distances daily because they can’t afford to buy or rent homes near their offices?
A>We are looking at all angles. Someone who lives in a small town and goes to work nearby will benefit. We haven’t fixed a cap yet but if there is no limit, it will definitely be abused. Those near the Thai border will sell it over the border and, in other places, people will sell it to those who are not entitled. So there should definitely be a cap.

Q> Is the Government also looking at reducing the subsidy on diesel?
A>Not right now. The real market price should be RM2.09 per litre for diesel but fishermen pay only RM1.20, public transport such as school buses, public buses, lorries and prime movers pay RM1.43, normal cars RM1.70 and airport taxis RM1.58. - This is the ONLY PART OF THIS INTERVIEW HE SAID WHICH was NICE TO READ.  The rest?  Read on...  YOU'LL BE PISSED with what he SAYS!  You've been warned - ED


The multiplier effect of diesel is different from petrol because petrol is not used for public transport and to transport goods. If we increase the price of diesel, bus fares will go up and the price of goods will increase immediately because transportation costs would increase. School bus operators, too, would want to hike up fares. There are a lot more considerations with regard to diesel than petrol.

Q> What products is Malaysia still subsidising? Are we moving towards a no-subsidy regime?
A>Sugar, cooking oil, flour, ST15 rice, petrol, diesel, LPG gas, and NGV gas for taxis. The fuel subsidies make up the highest amount. It was RM5.6bil last year (in 2008 when world oil price was higher, the subsidy was RM18.8bil).


We are not moving towards a no-subsidy regime yet. I don’t foresee us doing away with the subsidy for basic items like rice and petrol. What we are trying to do now is to focus on the target group. There has been too much leakage because people who are not eligible are getting subsidies.

Q> It has been reported that Malaysia by 2011 will be a net importer of oil, so shouldn’t we stop giving subsidy for oil?
A>The people are not ready. When I raised the price of sugar by just 20 sen, people got angry. We must educate our people. The problem with us is that when we get something, there is no way the Government can take it back. Sugar was never a subsidised product. The Government only started subsidising sugar in 2009. Before that, because the world sugar prices were low – at US$14.50 per kg – we had no subsidy at all. But last year, the price shot up. The Government wanted to cushion the effect and started subsidising sugar. Taking it back now is very difficult because people think it is their right. - I AM SPEECHLESS with What he said... He clearly speaks without thinking...


Q> Isn’t there ample justification to withdraw the subsidy on sugar because less consumption is better?
A>Many people, including consumer and health groups, feel there is no reason for the Government to subsidise sugar because it is bad for health. It can be likened to subsidising cigarettes. The sugar subsidy only makes people use more sugar every day and this will increase the number of chronic illnesses in the country.

This is what people should understand. We have to educate people and make them aware. If we do not educate them, it would be difficult because we have been enjoying subsidies for too long. Last year, the subsidy for sugar was RM720mil. This year, despite the 20 sen increase, the Government will have to fork out an even higher subsidy of about RM1.008bil.

Q> Biscuit and soft drinks manufacturers buy sugar at subsidised prices too. So can we have a two-tier system where industries pay the real market price?
A>We should actually do this. The problem is if we do, there will be a shortage of sugar because people will start hoarding sugar. Retailers, too, will manipulate the supply and sell to industries as they pay higher prices. This will cause problems for consumers. As far as retailers are concerned, why should they sell to consumers for RM1.65 when they can sell at higher prices to factories?

For example, if the real market price is RM2.45 and the factory offers retailers RM2.20, the factory saves cost and the retailer makes more money than selling it for RM1.65 to consumers. That’s our worry about putting two prices for sugar in place. This is what happened with subsidised diesel being sold on the black market.

Q> What is the hardest subsidy for the Government to withdraw?
A>Everything! The Government will spend RM104mil this year to subsidise flour. Last year, it was RM89mil. If we cut this, the Indians and roti canai lovers will make noise. So we are maintaining the price at RM1.35 because it is a staple food for Indians. Rice, too, is staple food for the Malays, Chinese and also Indians. It is also very hard to raise diesel price because the price of other goods will go up.


As for petrol, we just have to raise the price by 5 sen and people will get angry.

 With sugar, too, people made noise when we hiked the price up by 20 sen even though sugar consumption is known to cause harm. However, they are not really worried about sugar consumption at home because they consume only 1kg or 2kg a month and a 20 sen hike per kg is not a burden at all. What they are worried about is the multiplier effect – the effect it would have on food prices outside.

Q> Has the objection against the sugar hike been very serious?
A>Not so much because consumer associations have come out in support of the Government. We argue that for health reasons people should consume less, so why buy sweet things outside? But people still fear a hike in prices of food products. That’s why we will continue our campaign of reducing sugar in food and drinks.

END OF INTERVIEW.  

Man, I have only 2 WORDS after reading this INTERVIEW.  I'm very disappointed with what he said.  Clearly, he is INSENSITIVE with what he said, saying the RAKYAT Spoiled, RAKYAT will make noise, this and that...

He even have the CHEEK to quote this:  "Whatever we do, we can’t cover 100%. There are bound to be some who won’t be covered. This is true of whatever policy we make; it can’t be 100% perfect. There will definitely be some who are not satisfied or who terlepas (escape).".    WHO DOES HE THINK HE IS?  Reading the above makes me PI$SED OFF!!!

MY 2 WORDS: "SACK HIM!!!".   This will END ALL THIS HAVOC he's trying to CREATE BY MAY 1.

Why?
Cause he's Insensitive to the RAKYAT NEEDS. As I highlighted the above article in "BOLD AND ITALIC".

The Star: Sunday January 17, 2010

New rules to limit amount of petrol a vehicle owner can buy

By SHAHANAAZ HABIB

shaz@thestar.com.my

KUALA LUMPUR: The Government is likely to put a cap on the amount of subsidised petrol a car owner can buy monthly, when the new petrol pricing mechanism starts on May 1.
Without a cap on the amount for each car, those eligible for the subsidised petrol would “definitely abuse it,” said Domestic Trade, Co-operatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.

“They will buy as much petrol as possible and transfer it into a drum or somewhere, and then sell it to those who are not eligible.

“Those living near Thailand will sell it across the border,” he said in an interview yesterday.
Ismail Sabri said the Government was still discussing how much the limit should be and said this would be revealed to the public when it was fixed.

He admitted that those travelling long distances frequently and had no transport allowance might lose out due to the monthly cap.  However, there were others who would stand to gain, such as those driving small cars, living in small towns and working close to where they live.

The Government recently announced that it would fix a two-tier pricing system for petrol, depending on engine capacity, while foreigners would have to pay the market price.
Currently, the Government is subsidising petrol at 30 sen per litre for all. The market price for RON 95 is RM2.10 per litre but because of the subsidy, the pump price is only RM1.80.
Ismail Sabri said a person would be eligible for subsidised petrol for only one car.

He said, however, that if the cars were registered to different people, like the owner’s wife or children, then each would be eligible for the subsidised petrol.

On whether there would be two different pumps (subsidised and not subsidised) at petrol stations, he said that would not be the case; instead the pumps would have two prices or just the market price but those entitled to the subsidised price would pay less.

The Government was also looking at inserting a chip into the MyKad with information of the car, so that those eligible could swipe their MyKad for subsidised petrol.

The new pricing mechanism would apply only to the peninsula in the initial phase but it has raised many questions with few answers.

In Butterworth, DERRICK VINESH reported that Ismail Sabri said the archaic Hire Purchase Act would reviewed to protect car buyers from being harassed by car repossessors and finance companies.

“The laws at present seem to favour the banks and finance companies rather than consumers.
“Under the 1Malaysia concept, the people come first,” he said after opening the Consumer Awareness campaign at Sunway Carnival Mall Seberang Jaya here yesterday.

The other Acts also to be amended were the Copyright Act; Consumer Protection Act, Price Control Act and Direct Selling Act.

“We hope the Acts can be amended and passed in Parliament by the third quarter of the year,” he said.  At another function, Ismail Sabri said amendment to the Copyright Act 1987 would make owning even one copy of a pirated VCD or DVD an offence.

SOURCE:
1) http://thestar.com.my/news/story.asp?file=/2010/1/17/nation/5490845&sec=nation

The STAR: Sunday July 12, 2009

How to buy a car?

THE car industry is an exciting one indeed. With so many models available, and new ones being introduced almost every other month, buying a car can be a delightful process – or a harrowing ordeal.
Before you make a decision, it is important that you are well informed and prepared. After all, a car could be your second biggest investment after your home, so take your time with gathering information and conducting research. Your aim would be to end up as a happy, satisfied owner.

These are some of the areas you should consider before purchasing a car.

Match your lifestyle


First of all, ask yourself what you would need the car for? To conveniently zip around the city? Or do you travel long distances for business often? Maybe you need lots of room for your large family? Or do you have lots of sporting equipment to lug around?

Look for adjustable seats – such as these in the Honda Jazz – so you can configure the car to suit your lifestyle.

 

Your car should complement your lifestyle – and, luckily, there are so many types to choose from. There’s everything from a family sedan, sports sedan, compact, and hatchback, to an MPV, SUV or even pick-up trucks.


Can I afford it?

Affordability is a key issue among prospective car buyers, especially in the present economic climate. But many people are not aware that affordability encompasses more than just the car’s price.
There is a long-term cost that you should take into consideration such as the monthly repayment, maintenance costs, insurance and tax, fuel consumption, and resale value.

Most Malaysians spend 30% of their salary on their monthly car repayments. Take a reality check. Lay out your budget so that you can determine what sort of price range you are comfortable with. Currently, the cheapest passenger car in the Malaysian market is RM25,000 and the most expensive, RM1.5mil.

What brand?


Once you’ve narrowed the field of cars you are interested in, identify a few brands you are comfortable with.
Independent car reviewer Paul Tan says that a car manufacturer’s branding is usually built up over a long time, a result of a good track record in terms of product quality and service support. You will usually never go wrong with a mainstream brand.

The techy part

Now what about the technology? Although the general life cycle of a car model is five to seven years, most manufacturers will introduce new technology every year or so, be it in design, performance, or safety.
Here are a few technical terms that might be useful to you in considering the technology:

Displacement – Measured in litres and cubic centimetres (cc), displacement is the technical term for the “size” of an engine. The higher the displacement, the more refined and responsive your car will feel.

Torque (Nm) – Torque is basically the force or power from your engine needed to turn your wheels. The higher the torque, the more responsive your car will feel.

Remember, the higher your horsepower, the better your performance. – File photos

 

Revs (revolutions per minute, or RPM) – RPM refers to the engine speed; basically, how hard the engine has to work to give you the torque quoted. The lower the revs, the sooner you’ll feel the push of the torque. For a nippy, responsive car, look out for a higher torque and lower RPM.
Horse power (hp) – The maximum power produced by an engine. The higher your horsepower, the better your performance.

Be safe

In terms of safety, your car should at least have airbags and an Anti-lock Braking System (ABS). Vehicle Stability Assist (VSA, or traction control) and side and curtain airbags would be a bonus.

Tan explains: “VSA strategically applies brakes on each wheel individually to stabilise the car when it is out of control. This feature can come in very handy, especially road conditions being what they are locally, when you sometimes have oil on them, and when they get really wet during heavy monsoon rains.”

You might also like to consider your chosen model’s crash test results. G-Con technology, an internal passive safety standard, for example, uses collapsible body sections to evenly distribute the force of impact from a collision, hence minimising passenger and pedestrian injuries.

Some sources of credible results are Japan’s National Organisation for Automotive Safety & Victims’ Aid (www.nasva.go.jp), Euro NCAP (www.euroncap.com), and the Insurance Institute for Highway Safety (iihs.org); these are all independent organisations that evaluate the safety performance of vehicles available in specific markets.

What to look for?

Visit a few showrooms to look at the various models available. It is important that you like and are comfortable with the car. Here are some of the things you should consider when checking out a car:
Ergonomics – Make sure there is enough leg and head room; steering should be adjustable (tilt up and down, and telescopic, front and back); seats must be adjustable, especially the driver’s (up and down, and front and back movements).

Drivability – Check the car’s manoeuvrability and turning radius.

Utility – Are there enough storage compartments, is the trunk size adequate, can seats be reclined or can rear seats be folded to provide more space?

Tan advises: “The features must satisfy your lifestyle’s practical needs. This could mean sufficient seating and storage space.

“Some cars have reclining seats at the rear, even in sedans, which increases passenger’s comfort.”

Fuel efficiency

No matter what the prevailing economic conditions, it is always advisable to choose a car that is fuel-efficient. A combination of gear ratios, engine technology, and aerodynamics determines the car’s fuel-efficiency.
Explains Tan: “Previous general perception was that automatic transmission and high performance equals higher fuel consumption. But this is not necessary the case now, thanks to improving technology.
“Some cars are able to produce lots of power (peak torque at low rpm) without having to rev the engine much.”

Here are two formulas to calculate a car’s fuel efficiency:
Mileage from a full tank (km)/ Size of tank (litre) = km/litre
or
Size of tank (litre) x price of fuel (RM)/Mileage from a full tank (km) = RM/km

I want to be green

As exhaust emission is one of the greatest contributors towards global warming, it is our responsibility to cut down on emissions; one way of doing that is considering hybrid technology, which is kinder to the environment.

Hybrid technology uses two or more distinct power sources to move a vehicle: a combination of engine (petrol or diesel) and electric. The car uses less fuel to move, which translates into fewer emissions and increased savings.

Tan is of the opinion that, “Your vehicle performs better too as the electric system gives added power to the engine. For example, you can experience the power of a 1.8L car with a 1.3L hybrid engine”.
Honda Malaysia is the only manufacturer currently offering hybrids in this country.

Re-sale value
Most people do not take into consideration the resale value of a car but unless you plan to keep the car for life, a good resale value will prevent you from losing a lot of money. Several factors, such as good branding, after sales support, market popularity, and demand and supply determine resale value.

Test drive


Last but not least, take the car out for a spin before making your final decision.
“Take note of how the car responds, its ease of drive and manoeuvrability, its build quality and ergonomics.
“Different people have different body shapes and sizes. I have long legs that fit well in one car but not another, although they are in the same size and price segment. This is because of how far the front seats are able to slide back,” Tan says.

If you have questions about buying a car, go to smartwheels.com.my for tips and more information; you can also post questions at the site that will be answered by an independent car reviewer. This initiative is brought to you by Honda Malaysia.

SOURCE: 
1) http://thestar.com.my/lifestyle/story.asp?file=/2009/7/12/lifeliving/4238306&sec=lifeliving

 

That's all folks, thanks for having the time and patience to read this Blog Entry... 

The Star: Fuel price by car size + my opinion after the article

The Star, Friday January 8, 2010

Fuel price by car size

By ZALINAH NOORDIN

PETALING JAYA: The bigger your car, the more you will have to pay for petrol from May 1.
This is because the Government is going to change the way fuel is subsidised.

It is planning for a fuel pricing mechanism that will ensure only targeted groups, particularly those from the lower-income, will receive fuel subsidy.

Also, foreigners who drive into the country to fill up their tanks will not be eligible for subsidy and will have to pay more for fuel.

“The bigger the engine, the higher petrol will cost,” Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said yesterday.

The move was based on the assumption that those in the lower income group would normally drive a car with a lower engine capacity and thus be eligible for the subsidy, he said.

“For RON95 petrol, the subsidy is 30 sen per litre. The current price of RON95 petrol is RM1.80 compared with the actual price of RM2.10.
 
“Malaysians who are not eligible are those who drive a higher engine capacity car or non-Malaysians. They will have to pay RM2.10 or more for RON95,” he told a press conference after launching the new corporate identity of the F&N soft drinks division here yesterday.

Besides introducing the new structure, the ministry also plans to make the use of MyKad compulsory when buying petrol. “There are some Thai nationals who drive into Malaysia to fill up their tank because petrol is such an expensive commodity in their country,” he said.

In Muar. Deputy Prime Minister Tan Sri Muhyiddin Yassin said the Government was in the final stages of drafting a policy on the fuel subsidy which will be a “win-win situation” for both the Government and the people. He said that the new policy would identify people who were eligible for subsidy.

Umno Youth chief Khairy Jamaluddin had previously broached the subject about giving petrol subsidy to the right people. He said the subsidy must reach only the people who needed it most and giving subsidy across the board was a misallocation of funds.

On the subsidies for flour, sugar and gas, Ismail said they would be retained.  “Although the price for sugar has been increased by 20 sen, the Government is still providing subsidy for the commodity,” he said.
Ismail food outlet operators should not take advantage of the increase in sugar price to mark up the price of their products. “Food outlet operators should not regard this as an opportunity to raise prices,” he said.


END OF SOURCE: http://www.thestar.com.my/news/story.asp?file=/2010/1/8/nation/5431667&sec=nation

MY (Jeff Lim's) OPINION:


What a STUPID IDEA!  Why I said so?  Here's 2 scenario. 

Senario 1: BIG CC car owners DOESN'T mean RICH okay!!!  My father's friend who's in his 70s owns a 1989 BMW 740i and he's NOT RICH.  His 740i now only worth RM10,000!!!  He bought off this car 10 years ago upon retirement for mere RM80,000 only.  Ie. the price of a new Toyota Vios.


Scenario 2: Those Mercedes C200 Kompressor, E200 Kompressor and LATEST E200CGI, E250CGI owners will BENEFIT THE MOST as these cars were 1796cc only and were price up to RM458,000 for E250CGI Coupe.   I forsee that the above mentioned cars' sales will SHOT UP as SMART RICH people will take advantage of this LOOPHOLE.  They will LAUGH ALL THE WAY TO THE BANK!  Another Example: VW cars with 1.4TSI engine (eg. Jetta).  They costs roughly RM160,000 yet they enjoyed the SUBSIDY being a 1400cc car.

Lastly,  a NEW MAZDA RX8 which costs RM228,000 buyer pays only 1.3CC Roadtax! 


THe Government people CLEARLY OVERLOOKED the above scenario folks who'll TAKE ADVANTAGE of the SUBSIDY!!!



Jeff Lim signing off...

Ban on import of used car parts illogical

SOURCE: THE STAR: OPINIONS: LETTERS:
Thursday November 19, 2009

Ban on import of used car parts illogical

I REFER to the news report in Sunday Star and I support the Johor Used Car Spare Parts Dealers Association on their protest. What they said makes a lot of sense.

Many people are unhappy with the govern­ment ban on the import of used car parts in 2011. They complained to me since I am the legal adviser of Fomca.

I feel that this is a rash move by the Govern­ment. No statistics or studies have been furnished to show that the use of second-hand parts are the cause of the rising accident rate – if that is the reason for such a move.

Actually, no one knows the actual reason for the ruling and as such, I think the Government owes the people an explanation in order to avoid speculation and confusion.

Lower and middle-income groups are the most affected, especially the kampung and rural folks where second-hand parts are still being purchased and used for very obvious reasons, i.e. new parts are no longer available for old cars.

Forcing these folks to buy new parts for old cars does not make any sense since firstly, these folks can’t afford it as they are expensive and obviously when new parts are not available, they will be forced to scrap their cars. Even pensioners are affected by the move.

To get them to buy new parts is an unnecessary burden on most of them. Owners of old cars are already not eligible for third party insurance and are forced to take up comprehensive insurance which cost much more and now this?

If the Government wants to encourage people to buy local cars, then prices must go down and quality must improve. The Government can’t force people to purchase local cars by putting in place rash policies like this – if again that is the reason for imposing the ban. Why must the Government burden the people?

In Europe, the use of reconditioned car parts and second-hand car parts is encouraged as they are environment-friendly. Maybe the Government should look into this aspect. The Pensioners Association and Cuepacs should raise their objections to the Government.

The Government did the right thing in withdrawing mandatory inspection for cars of more than 15 years old. I urge the Government to do the same on second-hand parts too.

By A. JEYASEELEN,

Legal adviser, Fomca.

Job losses from New Automotive Policy compensated in long term: Mustapa

SOURCE: The Star: Monday November 16, 2009
Miti wants industry to look at NAP in the long run

SINGAPORE: Jobs lost due to the implementation of the New Automotive Policy (NAP), which will ban imported used car spare parts, will be compensated in the medium- and long-term.

International Trade and Industry Minister Datuk Mustapa Mohamed said the policy was in place to ensure safety and develop the country’s own automotive components industry.

“We are aware of the business interest but all this has been explained when we discussed it with industry players.


Above: Discussion: Mustapa talking with Singapore’s Minister in the Prime Minister’s Office Lim Hwee Hua during a breakfast meeting with the Singapore Business Federation on the sidelines of the Apec Summit in Singapore yesterday.

“Anyway, this policy does not take effect immediately and there is still room for people to improve,” he said, adding that the country needed more companies to set up base in Malaysia in order to develop the local automotive components industry.


“Once this develops, all the short-term job losses can be compensated in the long run.

“Yes, there will be glitches here and there but with some adjustments, this will benefit the country,” he said.

He added that he did not believe that 100,000 jobs would be lost when the NAP ruling came into effect in 2011.

Asked if the Government might reconsider the decision, he said the implementation of the policy would be carried out gradually.

On Saturday, Johor Used Car Spare-Part Dealers Association committee member Ng Keng Heng had said the ban would cause major problems to both dealers and owners of old cars.

He had claimed that there were more than 5,000 used car spare-part dealers around the country and the ruling could cause the loss of about 100,000 jobs.
Malaysian Industrial Development Authority director-general Datuk Jalilah Baba said it was still too premature to talk about job losses as the NAP’s main objective was to improve services.

References:
1) http://thestar.com.my/news/story.asp?file=/2009/11/16/nation/5118017&sec=nation

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

Govt scraps end-of-life policy for vehicles

SOURCE: The Star, Saturday November 7, 2009
Govt scraps end-of-life policy for vehicles

KUALA LUMPUR: The Govern-ment has agreed to pull back the introduction of an end-of-life policy for vehicles, after taking into account the people’s views and feedback.

Since the announcement of the plan, the Government has received many complaints from the people who were generally not agreeable to the mandatory annual comprehensive inspection as a requirement for road tax renewal for vehicles aged 15 years or older, a statement from the International Trade and Industry Ministry said yesterday.

On Oct 28, the ministry an­­nounced the new National Auto­motive Policy, which included the vehicle end-of-life policy, reports Bernama.

Meanwhile, International Trade and Industry Minister Datuk Mustapa Mohamed said the Cabinet had decided to withdraw the policy after getting negative feedback from the public.

“The public, especially those living in rural areas, found this new policy a burden to them,’’ he said.

END OF SOURCE...

MY (JEFF LIM'S OPINION):

Hey, that's NOT ENOUGH! What About the "Abolishment of Chop Shops by 2011?"
PLEASE SCRAP THAT AS WELL. Otherwise, the Rural areas/poor folks with older cars will still suffer as they no longer can find USED parts/components for their car as they were FORCED TO BUY NEW SPARE PARTS. Owners' of currently LOWISH Maintenence Prestige conti-car such as Mercedes W124 E-class (which priced from RM20k (1986 230E) to RM45k (1995 E220 Masterpiece FULL SPEC) currently depending on year, specs and Engine Capacity) will suffer.

Besides the RURAL FOLKS, Ah Bengs, Ah Lians and other Kaki Modify would also be disappointed as they can no longer source USED REASONABLY PRICED ENGINE (from Chop Shops), Brakes, Rims, Gearbox for Transplant. This means NO MORE 6A12TT V6, 1.6 MIVEC, 4G93T EVO, B16A, B18C, H22A, Rotary Engines, M3 engine, B8 engines, Mira L500 Turbo and the lists goes on from 2011 onwards...

In my HUMBLE OPINION, there's nothing wrong with having "Chop Shops" (Potong Kereta) in Malaysia. EVEN Developed places such as England, Japan, Hong Kong and New Zealand still having "Potong Kereta" @ Chop shops...

LASTLY, THE EXCISE DUTY, SALES TAX and IMPORT DUTY IS STILL ASTRONOMICALLY HIGH. Up to 300%! Please do something about it by considering reducing it...

That's all folks, Jeff Lim Signing off... Thanks for having the time and patience to read this...

Who' s footing the bill? By IZWAN IDRIS

As promised, Article 3 of 3 as published in today's The Star Business. I published here for your reading pleasure. Another WELL WRITTEN, Interesting, NEUTRAL yet THOUGHT PROVOKING, Article. I wish I can WRITE SUCH GOOD ARTICLE, But honestly, I simply can't. NOT AT THE MOMENT... Hats off to the author, "Izwan Idris".

SOURCE 1: The Star, StarBizWeek.

Saturday October 31, 2009
Who’s footing the bill?
By IZWAN IDRIS

"THE Government dished out a whole lot of fresh manufacturing goodies after it reviewed the National Automotive Policy (NAP), which can be described as an attempt to improve on the flawed original.

But with car prices being kept at prohibitively high levels, consumers cannot be faulted if they feel like they are the ones footing the bill to keep the industry alive.

“It was a positive NAP for market players, but not so for consumers,’’ MIDF Research analysts Zulkifli Hamzah and Wan Azhar Mustapa said in their commentary on the industry.

Malaysia is set to remain among the countries with the highest numbers of new car buyers after the International Trade and Industry Ministry said on Wednesday that it would keep import duty and exercise duty structures for motor vehicle at the current rates.

Any price reduction, the Government said, would have to come from the industry.

As it is, most analysts as well as market players, including Malaysian Automotive Association president Datuk Aishah Ahmad, expect car prices to remain the same, at least for the rest of the year.

Under the Common Effective Preferential Tariff scheme, Malaysia must eliminate import tariff for CBU (completely built up) vehicles produced in the region before Jan 1, 2010, to comply with the Asean Free Trade Area (Afta) agreement.

Currently, there is a 5% import duty imposed for CBU cars and motorcycles under Afta.

International Trade and Industry Minister Datuk Mustapa Mohamed said the Government was committed to honouring all its international obligations.

There is a chance for a slight price reduction for CBU car imports from neighbouring countries, but the final sticker price will depend on the respective car dealers’ marketing and sales strategy. One CBU model imported from Thailand into Malaysia is the Toyota Camry.

The Camry comparison


(SOURCE 2).

So how much does a Toyota Camry cost here and how does it compare to the rest of the region, and everywhere else, for that matter?

The 2.4 litre automatic version carries a sticker price of about RM260,000 in Singapore, which is higher compared to RM176,000 for a similar unit at local showrooms.

A check through the web revealed that the Camry is priced at about RM160,000 in Jakarta and just above RM150,000 in Thailand.

Meanwhile, a survey on households by CLSA published recently showed that the Camry in Malaysia has the second highest showroom price tag in Asia, behind Singapore, of course, but ahead of Hong Kong.

The car was priced between US$30,000 (RM102,000) and US$34,000 (RM115,000) each in China, Japan, the Philippines, Taiwan and Britain.

The Camry is the cheapest in the United States and Australia, where the sticker price is less than half of the one quoted at local (UMW) dealerships.

Of course, it can be argued that the actual cost of owning a car varied from country to country after taking into account other things such as fuel, parking fees, regular maintenance charges, road tax and insurance.

Also the same car may actually be of a slightly different specification and styling to suit local needs and conditions.

The Camry model is targeted at executives in most markets. In Malaysia, the Camry competes with MPVs and SUVs at a price range of between RM150,00 and RM200,000.

In the entry-level segment, the cheapest new cars in Asia can be bought in China and India. Most entry-level cars in markets surveyed by CLSA are priced below RM35,000 per unit. In Singapore and Hong Kong, the cheapest new car available starts from RM60,000 each.

Despite the relatively high local new car price, MAA expects the annual total industry volume (TIV) to remain above half a million units over the next three years.

Taxing burden

Under the revised NAP, the Government aims to boost foreign direct investments (FDIs) in the sector, but is careful not to antagonise supporters of the national car makers.

“There are seven policy thrusts detailed in the NAP, and we believe it has managed to successfully balance continued protection for Proton, whilst encouraging FDIs,’’ RHB Research Institute said.

The improved tax and incentives given to automotive components would benefit existing local exporters, as well as attract new players to set up shop in the country.

The prohibition of imported used parts will also force consumers to switch to using products by original equipment manufacturer (OEMs) and replacement equipment makers (REMs).

Meanwhile, there is a plan to gradually phase out older cars from Malaysian roads and to implement more rigorous safety checks on vehicles. However, no deadlines were given.

The MIDF analysts expect the development of the end-of-life vehicle (ELV) policy to be a slow process, given the “sensitive” nature of the issue.

One thing for sure, OEM and REM parts will cost more compared to used items and Malaysians will have to dig deeper into their pockets to maintain their vehicles.

And the prohibitively high sticker price for new cars out there continue to put better quality cars out of the reach of most Malaysians.

Based on current duty and tax structure, the effective rate for the Toyota Camry 2.4 stood at 185% of the CBU price. Basically, more than half of the sticker price at the local dealerships is attributed to duties and taxes.

Exercise and import duties collected from car sales contributed billions to the Government’s coffers every year, with some estimates putting it in the range of between RM6bil and RM7bil annually.

However, it can be argued that the high prices limit the industry’s growth potential. And it is unfair to car buyers to continue shouldering the financial burden of ensuring that domestic car makes remain competitively priced."

END OF SOURCE.

SOURCES:
1) http://biz.thestar.com.my/news/story.asp?file=/2009/10/31/business/5008187&sec=business
2) http://www.toyota.com.my/index.aspx?cat=models§=camry&subsect=gallery

That's all folks, thanks for having the time and patience to read this WONDERFULLY WRITTEN ARTICLE. Again, I REALLY REALLY WISH I CAN WRITE SUCH GOOD ARTICLE. But Not at the moment...

Friday September 11, 2009

Proton in talks with VW again

By JAGDEV SINGH SIDHU

This time the discussions are likely to centre on collaboration in platforms and engines

KUALA LUMPUR: Proton Holdings Bhd is in talks with Volkswagen (VW) that could lead to a strategic partnership and the assembly of vehicles at the national carmaker’s plant in Tanjung Malim.

The partnership was not expected to see the German auto giant taking an equity stake in Proton but a collaboration in platforms and engines was likely being negotiated, said market sources.

The talks between Proton and VW come at a time when DRB-HICOM Bhd is also engaged in discussions with the German company to assemble cars in Pekan.

“For the long term of the company, it (Proton) needs a partner because the size of Malaysia’s market might not be enough to sustain an independent producer,’’ said UOB KayHian research head Vincent Khoo.

Golf GTI is one of Volkswagen’s popular models in the local market

News that Proton is again in talks with VW is somewhat surprising as both parties have come to, and walked away, from the negotiating table numerous times.

A couple of years ago, Proton came close to inking a deal with VW which would have seen the German company taking a stake in the national carmaker.

A last-minute pitch by the Proton management to build on the company’s own “green shoots” then persuaded the Government from sealing an agreement with VW.

Proton found commercial success following the launch of the Persona but did not escape the global recession caused by the US financial crisis.

Its finances have improved with the launch of the Exora and for its first quarter ended June 30, it reported a net profit of RM54.6mil. The company’s shares closed three sen lower at RM3.71 yesterday.

Now, however, the timing is different.

Proton has maintained it needs a strategic partner but would agree to one on its own terms.

It is also understood that the Government would like Proton to have a strategic partner before the review of the National Automotive Policy is completed.

VW’s interest in Malaysia, too, has grown over the past couple of years after equity stake talks with Proton ended.

It has established its own sales and service business in Malaysia, and as of Sept 7, has seen the number of cars sold reach a total of 2,261 units after 2½ years of operations.

VW is reported to be looking at Malaysia as its sourcing hub for auto components in the region to fulfil its worldwide production and has intimated plans to expand its presence in the country through the local assembly of some of its cars.

Volkswagen Group Malaysia Sdn Bhd managing director Andreas Prinz on Wednesday was quoted by Bernama as saying the group was also thinking of making Malaysia its hub for parts distribution in South-East Asia.

“They will not be looking only at Malaysia’s market but use Malaysia as a sourcing hub for worldwide production,’’ he said.

VW is also interested in assembling cars in Malaysia and Prinz said the company was in discussion with a number of parties.

“Currently, in the automotive industry, everybody is talking to everybody, but we are focusing on CKD,” he said.

Malaysia remains an important market in the region as it is the largest passenger car market in South-East Asia, which is said to be an attractive element for VW.

SOURCE: The Star 11 September 2009 Page 1, Business Section.