End of tax holiday to spike demand

Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said the time extension will assist car companies to clear the backlog of orders received from customers. “Hopefully, the shortage of chips and components would be resolved by then. “The MAA would like to thank the Finance Ministry (MoF) for this extension to assist in clearing the backlog of order banks,” she told StarBiz.

KUALA LUMPUR: The discontinuation of the vehicle sales tax exemption beyond this month may create a brief spike in demand for cars for the rest of June and result in a potential sales glut for the remainder of 2022.

An analyst said there could be an “order avalanche in the next 10 days” as potential car buyers will want to take advantage of the limited time left before the tax holiday ends.