Saturday, March 11, 2006

high taxes

I want the new Honda Civic but...Lee Fei DaoMar 10, 06 3:06pm


Do you like the new eighth generation Honda Civic? I guess everyone would fall in love with it at the first sight and it is not expensive either - at least not in the US. In US, you can buy the 1.8cc model Honda Civic at RM56,832 (US$15,360 x 3.7). Yes, cheaper than Proton Gen 2 or slightly higher in price than Perodua’s Myvi. In Malaysia, to own the new Civic, you will have to pay RM114,000 for the 1.8 model and RM128,000 for the two litre model. To protect the inefficient national car companies, the government imposes ridiculously high taxes on cars, making Malaysia the nation with most expensive car prices in the world. Because of the national car project, Malaysians have suffered for more than 20 years. In the same price range as the Americans, we can only buy a low quality national cars with obsolete design and technology. Who are actually benefitting from the national car project? It is not the people. Well, it is not a secret that those who get rich are the well-connected cronies who own the car parts companies that supply inferior yet expensive components to the national car company. Some of the cronies do not even own a factory; they just merely act as middlemen by sourcing cheap parts and supplying it at exorbitant prices. Many national car owners would tell you their sorrowful experiences with the quality of the national car. Our national car company cannot even export 10,000 cars a year. In Thailand, a foreign direct investment car company exported more than 400,000 cars last year. The very sad part is due to high prices, many Malaysian who want to own a car are forced to buy small cars like the Kancil which have no proper safety features like ABS or airbags. You will be shocked with the fatality rate of these type of compact cars when they meet with accidents. In the US, a fresh graduate can buy the eight generation Honda Civic with about four to six months of his salary. In Malaysia, a low quality and obsolete national car costs more than 20 months salary. It is time for Malaysian to say enough is enough. We do not need a national car project. We want to buy a decent car at a reasonable price. Let us speak in one voice, together. We must tell our arrogant political servants which we voted in to manage this country every five years. We must demand that they act for our well-being or we will vote them out the next term!

How true! The Proton or Potong should go a long time. Many years ago I saw a Proton car accident and the parts that I saw chilled me off! I mean for a National car it is fitted with cheap parts. I don't think the people in the Top Management realize it or they close off their eyes...money first! I had seen the pictures of new Honda Civic but the price itself signal the high taxes imposed by the government even in US it doesnt cost a bomb in a working class salary..Here in Malaysia the government forces you to buy the national car without safety methods installed in the cars..

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