MAA: New government reviewing new OMV calculations

Six months ago, WapCar.my broke the news that locally-assembled (CKD) cars may cost more due to updated Open Market Value (OMV) calculations.

According to a report by Paultan.org, the Malaysia Automotive Association (MAA) president Datuk Aishah Ahmad said that MAA has written an appeal to the new government regarding the OMV.

“They said that they’re looking at it, reviewing it, to make it more acceptable to the automotive industry, and we’re waiting for the outcome,” she said.

Datuk Aishah added, “I think it should be very soon that we will know the outcome. It’s a work in progress.”

Back in January, Datuk Aishah said, “Any increase in OTR prices would be fully absorbed or exempted by the MoF for this year and the difference in duties for past years will also be exempted.”

To recap, prices of locally-assembled cars were initially set to increase after Chinese New Year, but the Ministry of Finance has postponed it until December 31, 2020. The increase in price is due to two factors: the withdrawal of EEV incentives and changes in Open Market Value (OMV) calculation – which was explained here.

The revision of OMV could bump car prices up by at least 15% more – if you’re buying a RM 100,000 car, expect to pay at least RM 15,000 more, enough to deter buyers from buying the car.