"Car Prices Will Not Increase Significantly Until 2025," - Datuk Aishah

The price of locally assembled (CKD) cars will not rise significantly until 2025, which is good news for car buyers this year. As a result, the government has agreed to keep the open market value (OMV) of excise duty on CKD vehicles for another two years.
Datuk Aishah Ahmad, president of the Malaysian Automotive Association (MAA), stated that the organisation has received a letter of approval from the Ministry of Finance (MoF) regarding the proposal to keep OMV.

"We received the approval letter last December," she said at a press conference announcing the automotive industry's performance in 2022. In addition, she stated that OMV is not the cause of the increase in car prices, but that if it is structured properly, car prices will skyrocket. For the time being, if the new excise duty OMV calculation is implemented this year, the price of locally assembled cars, including national brands, could rise by eight to twenty percent.

To clarify, the new Malaysian excise duty estimate was prepared by the MoF during the Pakatan Harapan (PH) administration and published on December 31, 2019. The Royal Malaysian Customs Department (JKDM) delayed the implementation of a new calculation structure from 2020 to the end of last year.