The Business Times
Asean Business logo
SPONSORED BYUOB logo
SUBSCRIBERS

Malaysia car sales on pace to exceed 2022 forecast, despite rising inflation and higher costs

Tax exemptions amounting to RM4.7b saw more people buy cars during the pandemic

Tan Ai Leng
Published Thu, Sep 15, 2022 · 05:50 AM

WHEN Desmond Tan, a 27-year-old marketing executive in Kuala Lumpur, placed an order for a car - a Perodua Ativa - in June, the dealer said the earliest he could get stocks of the 5-seater SUV would be in February or March next year.

That long waiting time didn’t bother Tan too much, as all it cost him was a RM100 (S$31) booking fee, which is fully refundable if he changed his mind about the purchase or failed to secure a vehicle loan.

“I don’t plan to apply for the loan so soon, as I’m still thinking if I should buy a new car. I placed the booking first as it’s a good deal, because I can save around RM2,000 on the sales and service tax (SST),” he told The Business Times.

Tan is not alone in trying to take full advantage of a tax exemption by the Malaysian government. Under the RM35 billion National Economic Recovery Plan, which was announced in June 2020, the Malaysian government gave SST exemptions for car purchases in an effort to boost the automotive industry, which was struggling due to the lockdowns and restrictions during t…

A NEWSLETTER FOR YOU
Friday, 8.30 am
Asean Business

Business insights centering on South-east Asia's fast-growing economies.

KEYWORDS IN THIS ARTICLE

READ MORE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Asean

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here