Latest news with #MohdShamsor
The Star
5 days ago
- Automotive
- The Star
MAA urges govt to expedite decision on on revised OMV excise duties
MAA President, Mohd Shamsor Mohd Zain — MUHAMAD SHAHRIL ROSLI/The Star KUALA LUMPUR: The Malaysian Automotive Association (MAA) has urged the government to expedite its decision-making and communication about the implementation of the new excise tax regulations under the PU(A) 402/2019 - Excise Tax Regulations (Determination of Value of Locally Manufactured Goods for Excise Duty) Regulations. MAA president Mohd Shamsor Mohd Zain said that delays and ambiguity in the decision-making process regarding the revised open market value (OMV) excise duties could result in car prices increasing by up to 30 per cent. He noted that the industry is still waiting for formal details on how the new method of calculating import and excise duties will be implemented from January 2026. "Definitely, we will have an engagement with the government on this, and hopefully we will be able to look into it as soon as possible. The next five months are a very short time for any production-related response. "When we talk about supply chains, it involves the entire logistics impact and more. We need at least six months, at a minimum, to adapt to any changes. So, we hope to receive updates on the next steps as soon as possible,' he said. Mohd Shamsor said this after the Review of Motor Traders and Manufacturers' Performance for the First Half of 2025 event held here today. He added that due to the requirements under PU(A) 402/2019, as well as relevant regulations and the Customs Act, the current formula needs to be revised to ensure it is fair and transparent. Nonetheless, he believed that the Ministry of Finance (MOF) would look into the matter more proactively to minimise or ideally avoid any impact on the industry. At the same time, Mohd Shamsor acknowledged that time is running short and that the roughly five-month window before the implementation of the reform does not provide sufficient time for manufacturers to respond, particularly in terms of the supply chain and logistics. "We need at least six months to adapt to existing changes, so we hope to get an update on the next steps as soon as possible,' he reiterated. In February, MOF denied media reports claiming that vehicle prices in Malaysia are expected to rise significantly from 2026 onwards, following the full implementation of the new excise tax regulation under PU(A) 402/2019. The ministry had earlier clarified that the claim was inaccurate and explained that MOF, together with the Ministry of Investment, Trade and Industry, is reviewing the vehicle valuation method to ensure that taxes are imposed fairly, neutrally, and consistently. - Bernama
The Sun
5 days ago
- Automotive
- The Sun
MAA: Impact of US tariffs on local auto parts industry yet to be felt
KUALA LUMPUR: The domestic automotive industry has yet to feel the impact of US tariffs on vehicle parts, according to Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain. He said any potential cost increases or supply disruptions would likely only begin to materialise in about six months. 'We haven't seen any impact so far. If anything, it may not be felt for six months. At this point, we don't have any clear indication yet,' he told a press conference today. Mohd Shamsor noted that the primary concern centres around motor vehicle parts and accessories, which account for nearly US$100 million (RM424 million) in trade. 'This segment makes up about 80% of Malaysia's total vehicle-related exports to the US, excluding those related to railway and tramway systems,' he added. Mohd Shamsor said the main concerns are centred around imported completely knocked down (CKD) vehicle parts, which could be subject to US tariffs when sourced from multiple countries. 'This impact may eventually filter down and affect us, potentially leading to slightly higher costs for parts,' he said. As for direct vehicle exports, Mohd Shamsor noted that volumes remain minimal, amounting to only about US$142,000 in 2024. 'It's minimal, mainly due to the differences between left-hand and right-hand drive vehicle specifications.' According to MAA, new vehicle sales in Malaysia fell 4.6% in the first half of 2025 compared to the same period last year. A total of 373,636 units were sold between January and June, down from 391,451 units in the corresponding period of 2024. MAA attributed the decline to a high base effect following last year's record-breaking total industry volume (TIV) of 816,747 units, alongside a sharp drop in January 2025 sales, which followed a surge in advance purchases in December 2024. 'Advance purchases in December 2024 affected sales in January 2025,' MAA said, highlighting that the highest monthly TIV was recorded in December 2024 with 81,735 units sold, compared to just 50,397 units in January 2025. Commercial vehicle demand also weakened, partly due to the termination of diesel subsidies in June 2024. Sales in this segment fell 21% to 26,552 units. Meanwhile, passenger vehicle sales dipped 3% to 347,084 units.
The Sun
5 days ago
- Automotive
- The Sun
MAA: xEV penetration in Malaysia set to reach 9.6% by end of this year
KUALA LUMPUR: The penetration of xEVs in Malaysia is projected to reach 9.6% by the end of this year, driven by the launch of new models and increased consumer interest. Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain said xEVs accounted for 8.6% of total vehicle sales in the first half of 2025. 'We've already achieved around 8.6% xEV penetration in the first half of the year. We're projecting to close the year at approximately 9.6%, supported by the introduction of new models,' he said in a press conference today. xEV is a collective term for all types of electric vehicles, including hybrid electric vehicles (HEV), plug-in hybrid electric vehicles, battery electric vehicles and fuel-cell electric vehicles. However, Mohd Shamsor cautioned that if EV-related subsidies are discontinued, the industry could see a spike in last-minute purchases towards the end of the year, followed by a prolonged slowdown. 'In the long run, the outlook would be very bearish,' he warned. Mohd Shamsor drew parallels to the introduction of HEV about 15 years ago. 'They essentially disappeared from the market for a period until manufacturers developed local assembly capabilities,' he said, adding that local production requires significant planning and cannot be implemented overnight. 'This is why we're advocating for a longer-term, consistent policy direction,' he emphasised. Commenting on the potential removal of RON95 fuel subsidies, Mohd Shamsor said it could have a similar impact on the auto industry as the earlier adjustments to diesel subsidies. 'On the flip side, it could also prompt more serious consideration of hybrids and EVs.' Mohd Shamsor also addressed the current wave of heavy discounting in the domestic car market. 'Discounting may help in the short term, but it's not healthy in the long run, especially for consumers,' he said. Excessive discounts reduce vehicle resale values, affecting early adopters the most, according to him. 'It creates an unsustainable sales environment. Promotions are necessary to attract buyers, but they shouldn't be overdone,' he said. Currently, fully imported EVs enjoy import and excise duty exemptions until December this year, while locally assembled EVs benefit from additional tax incentives until 2027. EV owners are also exempt from road tax until the end of 2025, with further incentives offered for home charging infrastructure and industry investments. However, many of these incentives are approaching their expiry, and the MAA is urging the government to extend them to maintain industry momentum. 'We're hopeful that the current subsidies and incentives will be continued. This would allow the industry to plan and support the government's goal of achieving 15% EV penetration by 2030,' Mohd Shamsor said.
Barnama
5 days ago
- Automotive
- Barnama
MAA Calls For Consistent Policies Under 13MP To Boost Automotive Industry
REGION - CENTRAL > NEWS KUALA LUMPUR, July 16 (Bernama) -- The Malaysian Automotive Association (MAA) has called for consistent, transparent policies under the 13th Malaysia Plan (13MP) to ensure the long-term competitiveness of Malaysia's automotive industry, particularly in the transition toward electric and green mobility. MAA president Mohd Shamsor Mohd Zain stated that policy consistency is crucial for original equipment manufacturers (OEMs) to invest and plan effectively. bootstrap slideshow 'I think the plans that the government is looking at in terms of new green energy and so on are something that it is looking forward to as part of the national energy roadmap. 'In terms of the country's growth, we need to enhance our technology and implementation. (Thus), things like solar, hydrogen and (others) are probably also being considered (in the 13MP),' he said. Mohd Shamsor said this after the Review of Motor Traders and Manufacturers' Performance for the First Half of 2025 event held here today. Meanwhile, MAA vice-president (manufacturing) Sarly Adle Sarkum said that one of the key concerns for OEMs in Malaysia is the consistency element in the 13MP. 'When the government implements the 13MP, what we want is consistency. Consistency is very important for any OEM to plan a long-term programme or any models. 'At the end of the day, if you decide within the five to 10 year period and then suddenly you change, that changes the whole ball game for the whole industry,' he said
New Straits Times
5 days ago
- Automotive
- New Straits Times
MAA urges govt to expedite decision on revised OMV excise
KUALA LUMPUR: The Malaysian Automotive Association (MAA) has urged the government to expedite its decision-making and communication about the implementation of the new excise tax regulations under the PU(A) 402/2019 - Excise Tax Regulations (Determination of Value of Locally Manufactured Goods for Excise Duty) Regulations. MAA president Mohd Shamsor Mohd Zain said that delays and ambiguity in the decision-making process regarding the revised open market value (OMV) excise duties could result in car prices increasing by up to 30 per cent. He said the industry is still waiting for formal details on how the new method of calculating import and excise duties will be implemented from January 2026. "Definitely, we will have an engagement with the government on this, and hopefully we will be able to look into it as soon as possible. "The next five months are a very short time for any production-related response. "When we talk about supply chains, it involves the entire logistics impact and more. "We need at least six months, at a minimum, to adapt to any changes. So, we hope to receive updates on the next steps as soon as possible," he said. Mohd Shamsor said this after the Review of Motor Traders and Manufacturers' Performance for the First Half of 2025 event held here today. He said that due to the requirements under PU(A) 402/2019, as well as relevant regulations and the Customs Act, the current formula needs to be revised to ensure it is fair and transparent. Nonetheless, he believed that the Finance Ministry (MOF) would look into the matter more proactively to minimise or ideally avoid any impact on the industry. Mohd Shamsor said that time is running short and that the roughly five-month window before the implementation of the reform does not provide sufficient time for manufacturers to respond, particularly in terms of the supply chain and logistics. "We need at least six months to adapt to existing changes, so we hope to get an update on the next steps as soon as possible," he reiterated. In February, MOF denied media reports claiming that vehicle prices in Malaysia are expected to rise significantly from 2026 onwards, following the full implementation of the new excise tax regulation under PU(A) 402/2019. The ministry had earlier clarified that the claim was inaccurate and said that MOF, together with the Investment, Trade and Industry Ministry, is reviewing the vehicle valuation method to ensure that taxes are imposed fairly, neutrally, and consistently. — BERNAMA
