“I believe that low-income Malaysians today would not have been able to have their own cars had it not been for Proton." - Deputy Finance Minister Datuk Chor Chee Heung.
How does a low-income Malaysian get to own a Proton? Proton has to build a car which has cheaper components and parts [I hope that the quality has not been sacrificed/compromised ;)] coupled with lower duties imposed by the government.
Personally, those who can even afford to buy a local made car are quite well off. It's not just buying a car but you have to ensure periodic maintainance, pump it up with the costly petrol, clean it, the need to pay road tax and a potential higher car insurance.
Try telling that to a father who is fetching two of his kids to school early in the morning. This is happening right in Kuala Lumpur itself. Don't need to describe about the rural areas.
Because of government protection accorded on Proton, higher duties were imposed on all other foreign made cars which made it quite impossible for low-income (I would say even above average Malaysians are affected) Malaysians to own one. These foreign made cars, even though of better quality and safety standards, are placed out of reach in that Malaysians will be forced to opt for a cheaper version i.e. the Proton cars.
I have heard before that one of the main reasons for imposing high duties on foreign made cars was to reduce the number of cars being driven on the roads. But why produce local cars that are cheaper where more people can buy it then. It contradicts.
Surprisingly, Proton cars could be bought at a cheaper rate even though it was exported out of Malaysia. No duties imposed by those countries? What about the freight charges?
In Saudi Arabia, Proton cars are sold at unbelievable low prices. It's not only in Saudi but the same in many other countries where Proton is being sold.
Worse still, the quality/specs are much better for those exported Proton cars. Apparently, it's to meet the minimum quality/safety standards in those countries.
Shouldn't these low prices be the same as in Malaysia for those low-income Malaysians?
Why are we benefitting the foreigners?
Low-income Malaysians subsidised those cars being exported?
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Reading: Chor lauds Proton for making cars affordable - Star
Reading: Proton - Prices & Specs - Drive Arabia
Tags: Malaysian Car Prices, Saudi Arabia, Proton, Car