MAA: Loan moratorium expiry to impact Malaysia auto industry negatively

Eric · Jul 27, 2020 01:59 PM

The 6-month long loan moratorium is set to expire in September and its expiry could have some negative impact on the Malaysian automotive industry. The loan moratorium went into effect in April as the country entered the Movement Control Order (MCO) period.

Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad told The Edge, “People will not have the money to buy new vehicles. But I think it depends on the category of vehicles. I think high-end vehicles will not be impacted; people who have the money still have the money to buy. I think low-end cars will be affected [more].”

Furthermore, Datuk Aishah also added that used car sales have improved by more than 100%, especially for models priced below RM 30,000.

"On lower-end cars, I think if the loan moratorium is lifted, there will be an impact. How much of an impact it will be is difficult to say right now,” she added.