Post Tagged with: "Malaysia"
A Bernama report quoted a Universiti Malaysia Sarawak lecturer, proposing that the government should increase the road tax for luxury vehicles rather than making high income earners pay the market price for RON95 as proposed by an income based fuel subsidy rationalisation structure.
Prof Dr Shazali Abu Mansor mentioned that everyone should be given the choice to pick between subsidised RON95 and non-subsidised RON97, regardless of the car they drive.
“There may be low-income earners who want to use RON97 petrol and there may also be those in the high-income group who want to use RON95 – it all depends on the requirements of the car they drive,” he Shazali.
He proposed that the government should reconsider the income-based fuel subsidy plan since a suitable mechanism to compute the actual income of individuals is still absent.
He has also said, “The cost of living has gone up and people (in all income groups) are already tightening their belts. It’s not fair to burden them further. What I’m saying is increase the road tax (for luxury cars) but let them (the owners) continue using subsidised RON95 petrol,”
Contrastingly however, Siti Rahayu Zakaria, the Vice President of Malaysian Consumers Association has told Bernama that the organisation supports the idea of a petrol card that takes into account an individual’s pay, number of cars he or she owns, as well as the engine capacity of each car.
But in her opinion the government should also take into account the total household expenditure, as financial commitments differ from individual to individual.
Malaysian Muslim Consumers Association’s Chief Activist, Datuk Nadzim Johan has voiced out his full support for the government’s decision to force the high income group to buy the RON95 at market price.
Various opinions are being voiced out about the proposed income-based fuel subsidy rationalisation plan, but until a proper system or suitable measure of the income level of an individual is in place, nothing is certain as of now.
This post first appeared on our sister site Live Life Drive.
As reported by LiveLifeDrive.com earlier in July, the current controlled prices of motor insurance premiums will in 2016, be replaced with a new risk-based price structure. In reply to The Sun yesterday, Bank Negara Malaysia (BNM) reiterated that motor insurance premiums will be based on a diverse list of risk factors from 2016 when the industry is de-tariffed.
The new structure, part of BNM’s New Motor Cover Framework’s move to deregulate the motor insurance industry, will see careful owners of low risk vehicles paying lower insurance premiums than those from high risk groups, for example, young male drivers in high performance or modified vehicles or those with a poor claims record.
“Hence, the premium rates vehicle owners will be paying (will) correlate with their level of risk which includes claims experience,” BNM told The Sun.
Several quarters have also said that while the exact value of motor insurance premiums that motorists need to pay have yet to be confirmed, they do expect the increase in competition will result in lower insurance premiums for some drivers, especially those from a low risk group – older drivers in their 30s, with a good claims record, driving vehicles that are at a lower risk of theft, parked in a secure location and driving mostly to their place of work and back (those whose jobs require a lot of driving may need to pay more).
“Like other liberalised markets, we expect competition to intensify once the statutory tariffs are abolished. Competition will drive down premiums, push up claims ratio, and drag profitability in the initial stage. But we expect some normalisation over the years and the industry would be better off in the long term,” said Alliance Research in a report in July 2014.
The details of the new risk-based motor insurance premium price structure is still under study but BNM assures the public that it is working closely with insurance industry players to formulate a feasible de-tariffing roadmap.
“In this respect, BNM is committed to ensuring that the de-tariffing process is managed in an orderly manner,” it said.
“As motor insurance is a compulsory cover, it is important that the de-tariffication approach does not significantly impact the motoring public and disrupt access to coverage.”
BNM added, “It is also important at the same time, for efforts to be channelled at inculcating safe driving habits among drivers and creating greater awareness on road safety.”
“Strong collaboration between the insurance industry, transport industry and other road users as well as the relevant agencies is particularly important to pursue complementary and mutually beneficial initiatives to reduce accident rates, save lives and hence minimise insurance payouts, which will eventually gravitate to lower premium rates,” it added.
On a related matter, BNM also said that policyholders will be required to pay the Goods and Services Tax on all general insurance products purchased, including motor insurance, effective April 1 next year.
This article was first published on our sister-site LiveLifeDrive.com.
“Yet,” couldn’t be more emphasised in that headline. Speaking yesterday at the launch of the Treasury Family Day at Paya Indah Wetlands, Deputy Finance Minister Datuk Chua Tee Yong said that plans the implementation of the income-based fuel subsidy rationalisation is still well within a “studying” phase.
Just last week, it was announced that an income-based fuel subsidy was in the works to be enforced, whereby low-income earners would continue to enjoy the subsidised RON 95 fuel, and high-income earners would pay a full market price, explained Deputy Finance Minister Datuk Ahmad Maslan. The minister also mentioned that this will be monitored by the use of your MyKad, which will of course have information about your income.
This announcement sparked a backlash of comments by many who’ve highlighted the many loopholes of the potential subsidy mechanism.
More recently, in a story by Astro Awani, Datuk Chua told reporters that, “In terms of the implementation of the subsidy rationalisation according to income, it is still at a study stage where we also have close communications with non-governmental organisations.
This also represents an initiative that not only involves the Finance Ministry, but requires cooperation from the Ministry of Domestric Trade, Cooperatives and Consumerism, and Economic Planning Unit.”
Datuk Chua’s comments at the event were reported to be in response to Deputy President of the Federation of Malaysia Consumers Association (FOMCA), Mohd Yusof Abdul Rahman’s asking of the government to provide a proper definition of what a “high-income earner” means.
We know for a fact that an income-based fuel subsidy rationalisation plan will inevitably be introduced, but plainly, its implementation is far from easy.
In a recent discussion with Proton’s chief technical officer, Abdul Rashid Musa, he revealed to us that apart from theelectric/ hybrid power potential of the Iriz we reported on earlier, and the likely R3 Iriz to come, rolling out new internal combustion engines is high on the carmaker’s to-do list – particularly direct-injection and forced-induction mills were given the nod.
Speaking about the future of Proton’s powertrain developments, the technical chief seemed keen to remind us of its long-done deal with Petronas, which saw Proton purchase not only a set of Petronas’ engines, but also 117 patents and seven engine technologies.
The deal for this took place some two years ago, with Proton wanting to continue where Petronas left off when they decided to leave the business of co-developing the engines in 2010.
Fast forward to today, and the current buzz around Proton has brought about new rumours of what could come, with Rashid himself nodding in approval when asked if direct-injection mills, along with turbocharged petrol and diesel were actual possibilities.
He also mentioned that all of these new engines would achieve sub-6.0-litre/100km (16.6km/litre) fuel-consumption figures, something which the Iriz’s new VVT engine came very close to during our recent media drive.
Prime Minister Datuk Seri Najib Tun Razak met with Joko Widodo within hours after Indonesia’s seventh president was sworn in and discussions between the two premiers led to an idea of a possible collaboration to produce an “Asean car”.
The project was well received by the newly-appointed Indonesian president and our national car maker, Proton Holdings Bhd, is said to be involved in the project.
At this stage, nothing is absolutely concrete yet but if Proton and Indonesia do decide to launch the Asean car project, it will require a feasibility study before it can be made viable.
With Proton’s launch of its most recent model, the Iriz, we expect a shared platform to be utilised in the Asean car.
This story first appeared on Live Life Drive.