KINIBIZ In Malaysia, two things result in car prices being higher, much much higher than those in most other countries – higher taxes to protect an inefficient industry and approved permits (or APs) given to a privileged few for imports of completely built-up cars.

Excise duties for cars in Malaysia range from 40-105 percent depending on amount of local content.

But for national cars which are badged Proton and Perodua, for instance, there are no excise duties at all. The cost of an AP can be up to RM40,000, the price of a car in many countries.

If these two elements – excise duties and APs – are not present, then the price of cars can be reduced considerably. Just check the prices of cars here with those in countries such as the US or Australia and you will find them as much as 50 percent cheaper!

Even cars from other Asean countries are subject to the excise duties while the Malaysian Automotive Institute (the body which formulates the National Automotive Policy) proudly proclaims that the market has been liberalised.

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This article was written by P Gunasegaram.