Latest news with #RM201
Malaysian Reserve
11-08-2025
- Business
- Malaysian Reserve
Abolish auto AP to ease rakyat's pockets
Malaysia's household debt stood at RM1.53t (2023)…13.2% or RM201b consists of vehicle loans SLIGHTLY over a decade ago, in a number of rooms around Putrajaya, groups of people were semi-forcibly huddled together to brainstorm ideas on how to provide financial relief for more than 29 million Malaysians facing an inflation crisis. For the uninitiated — yes, those days governments did sit down to think of the people's predicaments. And yes, sit down and think they did. The implementation, however, well, that's a conversation for another cup of coffee. So, there were many heads gathered in these rooms, called 'labs'. Some suggestions were radical, some were solid and some were downright logical. One of the most common themes shared by these labs was the idea of liberalising the automobile sector. Specifically, to abolish the system of Approved Permits — aka APs — for the importation and sale of vehicles in the country. These APs are making Malaysia one of the most expensive car markets in the world. And who will foot the bill? The rakyat of course — through import and excise duties. Automobiles represent the second-largest source of debt after property investment among Malaysians. Malaysia's household debt stood at RM1.53 trillion at the end of 2023, representing 84.2% of the country's GDP. Of that, 13.2% — or RM201 billion — consists of vehicle loans. It is an open secret that the AP system has enriched selected corporations and a small circle of privileged Bumiputera individuals. While the burden it places on the rakyat is enormous, while its spillover effect to the broader Bumiputera community has been minimal at best. Most AP holders held their interests through private entities and built dynasties but not much anything else. One became a billionaire, built an auto empire and sent his kids overseas for education. Kids came back, bickered over the inheritance and fractured the whole business. One became smarter — built other ventures, notably in helicopters, partnered with a Zionist-linked private equity firm, became a billionaire, wised up even further, bought back equity and eventually became a philanthropist. The government was reluctant to abolish the AP system, using tax return revenue as an excuse — a justification that was overwhelmingly pathetic, as the numbers proved insignificant compared to the ringgit that could have been returned to the rakyat. Based on 2020 numbers, the government collected approximately RM2.35 billion in import duties, with completely built-up (CBU) motor vehicles contributing around RM404 million, or 17.2%. The same data revealed that the government also collected RM5.14 billion in excise duties on imported goods. If the same proportionate contribution is deduced, motor vehicles could have contributed an additional RM884 million. For both import and excise duties, the automotive sector contributed approximately RM1.28 billion — all paid to the government. If the AP system was abolished, what quantum would the benefits to the rakyat be? It would be difficult to flesh out the actual number, as there is no flat rate for either import duty or excise duties. And the well-known fact that AP-holding car companies are profiteering ridiculously under the guise of tax only makes things more difficult. However, one can make an estimation based on a purchase experience of a completely knocked down (CKD) model. For the purpose of calculation and financing, one CKD car owner inadvertently got hold of his vehicle's duties sheet — which clearly stated the actual cost of his brand-new car. Its net price upon arriving at the port was RM18,000. Because his car has a 1,800cc engine, he had to pay an 80% excise duty and approximately 10% import duty, which brought the total cost to RM34,200 to take the car out from the port. But he paid about RM78,000 for the car on the road — more than double (128%) of the actual cost. Even then, if we maintain the same percentage of profiteering, abolishing the AP system and its related excise and import duties would reduce the nett cost by 90% to RM18,000. Even if the car seller wanted to retain the ridiculous 128% margin, the buyer would pay only RM41,040 — effectively saving a good RM36,960 or 47% off the actual purchase price. Use the power of assumption on average variables, one could deduce that from the existing RM201 billion in vehicle loans, a good 47% — valued at RM94.5 billion — could be returned into the rakyat's pockets. Lose RM1.28 billion from the Treasury to give RM94.5 billion to the rakyat — it would be a hands-down winner, wouldn't it? We can endlessly speculate about how the public might react, but one thing is certain: No one would want to drive the car they bought at half the price to a downtown protest demanding the resignation of the person who abolished the burdensome motor tax. No one. Asuki Abas is the editor of The Malaysian Reserve. This article first appeared in The Malaysian Reserve weekly print edition
BusinessToday
30-06-2025
- Business
- BusinessToday
Former Investment Banker Fined RM1 Million And 2 Years Jail
The Kuala Lumpur Sessions Court today sentenced a former investment banker to two years imprisonment and a fine of RM1 million, in default six months imprisonment, for securities fraud offences involving RM201,000. Ruwan Amaresh Shaun Ponniah, a former associate director of Debt Capital Markets at CIMB Investment Bank, was sentenced by Sessions Court judge Puan Norma Binti Ismail after he pleaded guilty earlier today to one charge under section 179(b) of the Capital Markets and Services Act 2007 (CMSA). The court also took into consideration nine other similar charges under section 171A of the Criminal Procedure Code (CPC). Ruwan had falsely represented to seven investors that he would invest their monies in shares listed on the Malaysian and foreign stock exchanges. The monies were instead utilised for other purposes without the investors' knowledge. Ruwan also pleaded guilty to one charge under section 58(1) of the CMSA for holding himself out as carrying on a business in fund management without being licensed or a registered person for fund management. The court sentenced him to two years imprisonment and ordered for the jail term to run concurrently with the first offence. Ruwan was first arrested and charged by the SC on 18 September 2024. He claimed trial to all the charges and was granted bail at RM210,000 with one surety. On 5 February 2025, upon Ruwan's application to the High Court for a reduction of the bail sum, the amount was reduced to RM105,000. However, Ruwan was unable to post bail and was remanded at the Sungai Buloh prison to date. The court ordered Ruwan's jail term to take effect from his date of arrest. Related
The Sun
30-06-2025
- Business
- The Sun
Ex-investment banker jailed 2 years, fined RM1m for securities fraud
KUALA LUMPUR: A former investment banker was sentenced to two years in jail and fined RM1 million by the Sessions Court today for securities fraud offences involving RM201,000. Judge Norma Ismail delivered the sentence to Ruwan Amaresh Shaun Ponniah, 36, who previously worked as an associate director of Debt Capital Markets at a local investment bank. He pleaded guilty to one charge under Section 179(b) of the Capital Markets and Services Act 2007 (CMSA). The court also ordered him to serve an additional six months in prison if he fails to pay the fine. His jail term will be backdated to his arrest date on Sept 18 last year. The Securities Commission (SC) stated that the court considered nine other similar charges under Section 171A of the Criminal Procedure Code (CPC). 'Ruwan Amaresh falsely represented to seven investors that their money would be invested in shares listed on Malaysian and foreign stock exchanges. Instead, he used the funds for other purposes without their knowledge,' the SC said. Additionally, he received another two-year jail term after pleading guilty to a charge under Section 58(1) of the CMSA for operating an unlicensed fund management business. This sentence will run concurrently with the first. Ruwan Amaresh's guilty plea followed his application for a plea bargain under Section 172C of the CPC. 'He was first arrested and charged by the SC in Sept 2024, initially claiming trial to all charges. Bail was set at RM210,000 with one surety. 'On Feb 5, 2025, his bail was reduced to RM105,000 after a High Court application, but he failed to post bail and remains in Sungai Buloh prison,' the SC added.
The Star
30-06-2025
- Business
- The Star
Ex-investment banker jailed, fined RM1mil for securities fraud
KUALA LUMPUR: The Kuala Lumpur Sessions Court today sentenced a former investment banker to two years' jail and a RM1mil fine, or six months' jail in default, for securities fraud involving RM201,000. In a statement, the Securities Commission (SC) said Ruwan Amaresh Shaun Ponniah, a former associate director at CIMB Investment Bank, was sentenced by Sessions Court judge Norma Ismail after pleading guilty to a charge under Section 179(b) of the Capital Markets and Services Act 2007. The court also took into consideration nine other similar charges under section 171A of the Criminal Procedure Code (CPC). Ruwan had falsely represented to seven investors that he would invest their monies in shares listed on the Malaysian and foreign stock exchanges. The monies were instead utilised for other purposes without the investors' knowledge. Ruwan also pleaded guilty to a charge under Section 58(1) of the CMSA for unlawfully holding himself out as a licensed fund manager. The court sentenced him to two years imprisonment and ordered for the jail term to run concurrently with the first offence. Fund management is a regulated activity under Schedule 2 of the CMSA. The offences took place between October 2018 and June 2020. Ruwan's plea was made in pursuant to his application for a plea bargain under section 172C of the Criminal Procedure Code (CPC). He was first arrested and charged by the SC on Sept 18, 2024. He claimed trial to all the charges and was granted bail at RM210,000 with one surety. On Feb 5, 2025, the High Court reduced Ruwan's bail to RM105,000 following his application. However, he failed to post bail and has been held at Sungai Buloh Prison since. The court ordered his jail term to begin from the date of his arrest. The SC reminds the public to remain vigilant and to confirm the legitimacy of any investment offers by using the Investment Checker, available at on its official website.
New Straits Times
30-06-2025
- Business
- New Straits Times
Ex-banker jailed two years, fined RM1mil for securities fraud
KUALA LUMPUR: A former investment banker has been sentenced by the Kuala Lumpur Sessions Court to two years' imprisonment and fined RM1 million, or a further six months in jail if he fails to pay, for committing securities fraud involving RM201,000. Ruwan Amaresh Shaun Ponniah, who previously served as an associate director of Debt Capital Markets at CIMB Investment Bank, pleaded guilty before Sessions Court Judge Puan Norma Binti Ismail to one charge under Section 179(b) of the Capital Markets and Services Act 2007 (CMSA). In a statement, the Securities Commission Malaysia (SC) said the court also took into account nine additional similar offences under Section 171A of the Criminal Procedure Code (CPC) for sentencing purposes. Investigations found that Ruwan deceived seven investors by claiming he would invest their money in shares listed on local and foreign stock exchanges but instead used the funds for other purposes without their knowledge. Ruwan also pleaded guilty to one charge under section 58(1) of the CMSA for holding himself out as carrying on a business in fund management without being licensed or a registered person for fund management. The court sentenced him to two years imprisonment and ordered for the jail term to run concurrently with the first offence. Fund management is a regulated activity under Schedule 2 of the CMSA. The offences took place between October 2018 and June 2020. Ruwan's plea was made in pursuance to his application for a plea bargain under section 172C of the CPC. According to the statement, Ruwan was first arrested and charged by the SC on Sept 2024. He claimed trial to all the charges and was granted bail at RM210,000 with one surety. On Feb 5, 2025, upon Ruwan's application to the High Court for a reduction of the bail sum, the amount was reduced to RM105,000. However, Ruwan was unable to post bail and was remanded at the Sungai Buloh prison to date. The court ordered Ruwan's jail term to take effect from his date of arrest. The SC reminds the public to remain vigilant and to confirm the legitimacy of any investment offers.
