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2019/AD1/007 Agenda Item: 3.5

Malaysia's Industry Situation and Market Development

Purpose: Information

Submitted by: Malaysia

30th Automotive DialogueBali, Indonesia

25 to 28 June 2019

26-28 June 2019, Bali

Malaysia: Industry Situation & Market Development

Copyright © 2018 APEC Secretariat

30th APEC AUTOMOTIVE DIALOGUE

CONTENT

1. Current Market Situation

2. Economic & Market Outlook for 2019

3. Tax Structure

2

1. Current Market Situation

3

MOTOR VEHICLES: TOTAL INDUSTRY

VOLUME (2013 TO 2018)

4Source: Malaysia Automotive Association (MAA)

576,657 588,348 591,298

514,594 514,675 533,202

79,136 78,139 75,376 65,491 61,950 65,512

655,793 666,487 666,674

580,085 576,625598,714

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2013 2014 2015 2016 2017 2018

UNIT PV CV TIV

MOTOR VEHICLES:

JAN - MAY 2019 vs. JAN – MAY 2018

Total Industry Volume 253,802 units

Passenger Vehicles 232,362 units

Commercial Vehicles 21,440 units -2.2%

12.7%

14.3%

5

Source: Malaysia Automotive Association (MAA)

MOTOR VEHICLES:

JAN - MAY 2019 vs. JAN – MAY 2018

Total Industry Production 247,951 units

Passenger Vehicles 231,874 units

Commercial Vehicles 16,077 units -3.4%

2.6%

3.1%

6

Source: Malaysia Automotive Association (MAA)

MOTORCYCLE SALES (2013 TO 2018)

7Source: Motorcycle & Scooter Assemblers And Distributors Association of Malaysia (MASAAM)

1.7%

-19%

-14%

4.1%

10% 9%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

-

100,000

200,000

300,000

400,000

500,000

600,000

2013 2014 2015 2016 2017 2018

UNITUnit % growth

MOTORCYCLES:

JAN - MAY 2019 vs. JAN – MAY 2018

MOTORCYCLES:

Production 223,595 units 24.3%

Sales 224,794 units 23.8%

8

Source: Motorcycle & Scooter Assemblers And Distributors Association of Malaysia (MASAAM)

2. Economic & Market Outlook for 2019

9

MALAYSIA’S GDP GROWTH

PERIOD GROWTH

2018 (Actual) 4.7%

1Q 2019 (Actual) 4.5%

2019 (Forecast) 4.3 to 4.8%

Source: Central Bank of Malaysia

10

FORECAST OF MOTOR VEHICLE’S

TOTAL INDUSTRY VOLUME

11Source: Malaysia Automotive Association (MAA)

MARKET

SEGMENT

2019

(FORECAST)

2018

(ACTUAL)

VARIANCE

UNITS %

Passenger

Vehicles534,000 533,202 798 0.15%

Commercial

Vehicles66,000 65,512 488 0.74%

Total Vehicles 600,000 598,714 1,286 0.21%

3. Tax Structure

12

MALAYSIA: TAX STRUCTURE

No changes in tariff structure since Sales & Services

Tax (SST) system was re-introduced to replace Goods

& Services Tax (GST) effective 1st September 2018

13

PASSENGER CARS (INCLUDING STATION

WAGONS, SPORTS CARS AND RACING

CARS)

LOCAL TAXES

CBU & CKD

Engine

Capacity (cc)

Excise

Duties Sales Tax

< 1,800 75% 10%

1,800 - 1,999 80% 10%

2,000 – 2499 90% 10%

Above 2,500 105% 10%

14

OTHER MOTORCARS

IMPORT DUTY LOCAL TAXES

CBU CKD CBU & CKD

Engine Capacity

(cc) MFN ATIGA MFN ATIGA

Excise

Duties

Sales

Tax

< 1,500 30% 0% NIL 0% 60% 10%

1,500 - 1,799 30% 0% NIL 0% 65% 10%

1,800 - 1,999 30% 0% 10% 0% 75% 10%

2,000 – 2499 30% 0% 10% 0% 90% 10%

Above 2,500 30% 0% 10% 0% 105% 10%

15

COMMERCIAL VEHICLES

IMPORT DUTY LOCAL TAXES

CBU CKD CBU & CKD

MFN ATIGA MFN ATIGAExcise

Duties

Sales

Tax

30% 0% NIL 0% NIL 0%

16

Terima Kasih

Thank You

17