MITI: Car Prices in Malaysia Driven by Market, Not Government

Concerns over the price of Malaysian-made cars surfaced in the Dewan Negara when Senator Datuk Ahmad Ibrahim questioned why many buyers still end up tied to long-term loans despite local models not being subject to import duties.

The Ministry of Investment, Trade and Industry (MITI) replied that the government does not control car prices, which are instead set by the market.

MITI explained that the Ministry of Finance has long supported the industry with incentives and tax breaks for vehicles assembled in Malaysia, including those built by national brands. 

These measures aim to strengthen local supply chains, encourage investment, and support research and development (R&D). With such support, locally assembled cars can usually be priced more competitively than fully imported models.

The ministry also pointed out that affordable cars are already available. Perodua’s Rahmah category models start from RM22,000 before insurance, while Proton continues to offer the Saga for under RM40,000.

According to MITI, the goal is to give Malaysians a range of choices so they can pick vehicles that suit their finances, and avoid being weighed down by heavy debt.

Source: The Star