Vehicle prices to drop 30% by 2018, says Azalina

Minister says government remains committed to gradually reduce vehicle prices by 20-30%, as pledged in BN’s manifesto during last general election.

KUALA LUMPUR: Vehicle prices will decrease by 30% by 2018, said Minister in the Prime Minister’s Department Azalina Othman Said.

Azalina in a written reply said the government remained committed to gradually reducing vehicle prices by 20-30% as pledged in the Barisan Nasional’s manifesto during the 13th General Election (GE13).

“As such, various measures have been taken, including providing incentives and reducing excise duty for car manufacturing companies involved in local value-added automotive parts.

“The incentives provided have produced results as total price reduction (vehicle prices) recorded in 2013 was 3%, followed by 7% in 2014 and 2.7% in 2015,” she said.

She was replying to a question from Lim Lip Eng (DAP-Segambut), who wanted the government to declare the status of the government’s promise pertaining to the reduction of national car prices and toll rates as pledged during the 13th General Election.

Commenting on toll rates, Azalina, who is also Pengerang Member of Parliament, said since 2008 the government had begun negotiating with highway concessionaires in an effort to reduce toll rates which were a financial burden to road users.

The negotiations were aimed at finding the best mechanism in achieving a “win-win” situation for all parties, namely the government, concessionaires, investors and road users.

“Through the negotiations, we have among others, managed to postpone the highway toll hike since the last eight years, from 2008 until Oct 14 last year, abolish toll collection, manage early closure of eight highway toll plazas and reduce toll rates which involved three highway concessionaires” she said.

In addition, toll rates for highways under PLUS Malaysia Berhad and Kumpulan ANIH Berhad were restructured, certain clauses in the concession agreement were improved and the clause provided for toll revision mechanism was no longer allowed automatically, she added.

– BERNAMA