A recent Malaysian Insider report on the rising cost of cars should be cause for concern.
According to the story, young Malaysians are now faced with a dilemma on whether to buy a car now or wait until the economy improves.
As the report notes, the introduction of the Goods and Services Tax (GST) has hurt demand in the automotive sector.
At the same time, the collapse of the ringgit is compelling further price increases. For instance, UMW Toyota Motor Sdn Bhd is said to be increasing prices of its Toyota and Lexus models by 4% and 16%
respectively due to the weak ringgit.
The Malay Vehicle Importers and Traders Association of Malaysia (Pekema) has also warned that it may have to increase prices by 25%-30%.
A car, like it or not, remains a necessity for most Malaysians given the lack of progress on creating holistic mass transit for the whole country.
Moreover, it highlights how transportation costs are becoming yet another financial burden for Malaysians, particularly the youth, often on top of other crushing expenses such as the repayment of educational loans and housing.
Indeed, rather than do right by the people, the government has now countenanced, in this time of economic uncertainty, to huge increases in major toll road rates.
This is not the behaviour of a government which puts “People First.”
Najib Razak’s government should admit that its policies have failed and implement our policy of reducing car prices.
If it fails to do so, Malaysian voters should judge for themselves who really has their interests at heart.
