KUALA LUMPUR: Vehicle selling prices in Malaysia are not controlled by the government and are determined by the market, says the Investment, Trade and Industry Ministry.
The ministry said that the government, through the Finance Ministry, has provided various incentives and tax exemptions for vehicles assembled in Malaysia, including those from national car manufacturers.
"The purpose of these incentives includes encouraging the use of locally produced components from vendors, promoting quality investments, and conducting research and development activities in Malaysia.
"Through these incentives and tax exemptions, vehicle manufacturers can offer competitive prices for the local market compared to fully imported vehicles," it said in a written reply to the Dewan Negara posted on the Parliament's website on Thursday (Sept 4).
This was in response to Senator Datuk Ahmad Ibrahim, who asked if the ministry intends to review the prices of Malaysian-made cars, which are perceived as too expensive, forcing people to take long-term hire-purchase loans despite local cars having no import duties.
Meanwhile, the ministry said there are manufacturers that produce affordably priced vehicles.
"Perodua produces its 'Rahmah' category vehicles, which are affordably priced at RM22,000, excluding insurance, enabling more people to own a car. Proton also offers the Saga model priced under RM40,000.
"The government hopes that through this approach, people can choose vehicles that fit their financial capabilities to avoid a heavy financial burden," added the ministry. – Bernama
