THE FAILURE of the BN
Government in providing adequate public transport system in the state and
country has resulted in more and more young Malaysians to fall into debt and
eventually become bankrupt.
25% of loan defaulters are
actually derived from car loans. "The highest number of bankruptcy cases
involved those between the age of 35 and 44 years old with 37, 493 cases
recorded (32 per cent) followed by those between 45 and 54 years with 30, 910
cases (27 per cent),"According to Dr Roland Chia Ming Shen – PKR Central
Council Member cum PKR Sabah Secretary.
As a result of poor public
transport system in the country, cars are widely viewed as necessity rather
than a luxury. This resulted in more and more of Malaysians resorted to take
out hefty car loans which directly takes out a chunk of the average house hold
income. The average household debt is currently at 76% of their monthly income.
Currently the excise duties
of 75% to 105% are imposed on passenger cars. The excise are passed on to end
consumers who ends up paying inflated prices for cars unlike those in the
region. For eg- a 1.5 litre Toyota Vios with full specifications retails at
RM89,000 in Malaysia where in Thailand it costs around RM64,000.
This is the result of the
years of local automotive players have enjoyed a very cosy existence- across
the supply chain, car companies to end financier who have enjoyed fat margins
and keeping the car prices at unreasonable prices.
Insolvency Department has
handled 241,740 bankruptcy cases until April this year and the bulk of them
were due to vehicle hire purchases.They were 116,379 bankruptcies since 2005,
with 29, 338 (25 per cent) comprising those who defaulted on car loans. Other
causes of bankruptcy include personal loans (13 per cent), housing (12),
business (11) corporate loans (five), credit card debts (five), income tax
debts (one) and student loans.
The staggering number was
revealed by BN Minister himself in Parliament in the Prime Minister's
Department Datuk Seri Nazri Aziz during the question and answers session in one
of the Parliament sittings.
Therefore , this is the very
reason why Pakatan Rakyat is committed to reduce car prices by tendering out
APs (Approved Permits) to the public rather than handling out to certain
quarters and cronies. In addition to that, PR is committed to slash down excise
duties on cars. Such measures from Pakatan Rakyat has been supported by various
automotive association groups in the country- Dr Roland Chia added.
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