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Malaysian vehicle sales predicted to rise by 3.8% in 2023 amidst pent-up demand

Malaysian vehicle sales for 2023 are expected to defy earlier projections, with a 3.8% increase, as pent-up demand exceeded expectations during the sales tax exemption period.

Contrary to a prior estimate of a 9% decline, robust demand persisted throughout H1’23, reflecting a 12.6% YoY rise in sales. Supply chain improvements propelled Perodua and Proton, leading the local car market.

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MALAYSIA: Malaysian total vehicle sales for 2023 is forecasted to rise by 3.8%, according to BMI, Fitch Solutions’ unit.

The total vehicle sales revision was made, in contrast to the research house previous forecast of a 9% decline, due to much better than anticipated pent-up demand for vehicles purchased during the sales tax exemption period.

“We note that we had previously expected demand to taper off in the second quarter of 2023 (Q2’23), however, data compiled by the Malaysian Automotive Association (MAA) shows that demand remained elevated all throughout the first half of 2023 (H1’23).

“According to the MAA, vehicle sales rose by 12.6% year-on-year (y-o-y) in the first seven months of 2023 to reach 429,807 units from 381,680 units over the same period in 2022.

“Easing supply chain constraints have given a boost to Malaysia’s total vehicle sales as fulfilled bookings reveal the true extent of pent-up demand,” it said.

For instance, Perodua, Malaysia’s best-selling automaker revealed a 17% rise in output levels in H1’23 owing to a better supply of parts and improved production efficiency levels.

The automaker also revealed that it is on track to meet its guidance of 314,000 units to be registered in 2023.

Similarly, the second-highest automaker by volumes in Malaysia, Proton, revealed that demand remains robust post the sales tax exemption expiry.

Proton has highlighted elevated demand for its SUV lineup with the X90 model taking the lead in the D-segment.

Overall, the research arm highlights that national car brands remain popular with market share firmly entrenched.

Vehicle Demand In 2023 Is Proving To Be Robust Malaysia – Total Vehicle Sales, Units (LHS) & % Chg. y-o-y (RHS) (7M23 vs. 7M22)

Expect a surge in demand for electric vehicles (EVs)

Demand for EVs will surpass internal combustion engine (ICE) cars within the research house 2023 to 2032 forecast period.

“We forecast total EV sales to quadruple in 2023, although the country’s EV penetration rate (EV sales as % of total vehicle sales) will sit at just 1.8%.

“Although the growth rate for the Malaysian EV market is significant, we note that it falls behind that of 2022 (+870.8%).

“The slowdown in growth terms is reasonable since growth rates tend to recede as volumes rise,” it said.

Looking at the key drivers for Malaysia’s prospective growth in EV adoption rates, it highlights the extension of import duty exemptions for components for the local assembly of EVs, the excise duty and sales tax exemptions for locally assembled completely knocked down (CKD) EVs, and the import and excise duty exemptions on imported completely built-up (CBU) units.

“Another important consideration made in our EV forecast is the presence of local EV manufacturing from Volvo and Mercedes-Benz.

“The latter has indicated that it plans to have 30% of all its vehicles sold in Malaysia to be electrified by 2030, as Malaysia offers one of the highest EV penetration rates for its products globally.

“Indeed, Malaysia has also witnessed a large number of automakers entering the market giving consumers more choices.

“For instance, BYD, the vertically-integrated Mainland Chinese EV automaker (largest EV maker in the world) has entered the Malaysian market offering affordable EV options such as the Dolphin model and the popular SUV Atto 3 model,” it said.

EV Adoption In Malaysia Is On The Rise Malaysia – EV Sales & EV Penetration Rates (2021-2032)

In addition, commercial EVs are also picking up steam with the announced entrance of Volvo commercial heavy trucks.

With road freight a dominant mode of transporting goods in the country, electric heavy trucks will be in focus especially as companies look to scrutinize their supply chains for emissions reductions.

“We remain cautious on Malaysia’s vehicle market in 2024 and 2025, as high base effects could derail the record sales volumes posted in 2022 and expected in 2023. This could lead to a weaker sales environment beginning in 2024 as high base effects kick in.

“We have therefore revised our 2024 and 2025 forecasts lower in light of the upward revision in 2023 vehicle sales.

“We have previously expected sales in 2024 and 2025 to rise by 3.3% and 3.0%, respectively, and now, we expect sales to grow by a modest 1% in 2024, but to contract by 0.5% in 2025 as the local autos market faces some difficulty and somewhat slows down.

“That said, we believe that vehicle demand will remain at elevated levels as Malaysian consumers benefit from structurally high economic growth levels, a dynamic economy that is attracting investments in high-tech sectors such as the semiconductor manufacturing space, and generally high-income levels as Malaysia inches closer to high-income status,” it said.

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Animals

House fire in Penang claims lives of 14 pet dogs, owner devastated

A house fire in Penang claimed the lives of 14 pet dogs, leaving the owner in deep grief. A viral TikTok video captured the tragedy, as the owner shared the emotional and financial toll of the incident, with the cause of the fire still under investigation.

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PENANG, MALAYSIA: A tragic house fire in Tanjung Bungah, Penang has claimed the lives of 14 pet dogs, leaving the owner mourning the loss of his beloved animals.

A viral TikTok video captured the heart-wrenching aftermath, showing the owner’s grief as he recounted the devastating incident.

@maheswaranmuthiah

The worst tragedy in my life. My house burnt to ashes. 😭😭😭. Everything gone within an hour. I lost about 20k cash, training materials, banners, 2 professional dslr camera and equipments, commercial cooking equipments, commercial makeup learning equipments, canopy, mannequins, TV, blueray player, 2 hp, 3 laptops, my son’s ipad Pro 10, 1 pc, about 6 hardisks, 10 thumb drives, memory cards, 1 coffee machine, 1 coffee maker, letrik piano, exercise equipment, almost thousands of new and preloved novels, self development books, recipe books, IT Books, Law & Legal Books, skills development related to photography, makeup, tattoo, cooking, massage, entrepreneurship and etc books, 2 industrial fan, chiller, freezer, about 100+ academic/ appreciation certificates, reference letters, evaluation, recognition, modeling clothes, costumes, lingerie, 10 coat/ blazers, bags of ties, my business stocks like bliese perfume, air fresher, skincare product, toys, souvenirs, F&B, all my personal photo albums and belongings including all our clothes, puzzles, furnitures, book shelf, son’s toys and belongings, meditation/ yoga mate, crystals, rudraksha, grass cutting machine, water pressure pump, air purifier, water purifier, some jewelry, public gold coins and lots more…. But the worst of all is the lost of my 14 furrykids. My most precious children. All that I mentioned above is something I could rebuilt and recover. That I have to do for my 1 and only human son. But his siblings, my 14 children that perish in this unfortunate incident will not come back. This is an unbearable and unforgettable pain that will remain till the end of my life. 😭😭😭😭😭. An endless suffering in silent pain for me. 😭😭😭😭. #maheswaran #maheswaranmuthiah #furrykids #penang #malaysia #tragedy #crowdfund #pmx #chiefminister #chowkonyeow

♬ original sound – maheswaran – maheswaran

The fire allegedly occurred while the family was out for dinner, with no one present at home to rescue the pets.

The owner in response to concerning TikToker questions, speculated that the fire may have been caused by an electrical short circuit, but authorities have yet to confirm the exact cause, which remains under investigation.

In addition to the emotional toll, the fire also resulted in significant financial losses, with over RM20,000 (approximately US4,777) in cash and valuables destroyed.

“Everything was burnt to ashes within an hour,” the owner lamented.

While the dogs were not confined in cages, they were trapped inside the house, and despite neighbors being nearby, they were unable to intervene.

Firefighters on the scene advised bystanders to stay clear due to the risk of explosions.

The viral TikTok video has garnered widespread attention, with many netizens expressing their condolences and shock over the tragedy.

Comments on the post were filled with support, with some users reflecting on the irreplaceable loss of the pets and offering words of comfort.

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Civil Society

RSF condemns Malaysian court ruling against British journalist Clare Rewcastle Brown

Malaysia’s Federal Court rejected Clare Rewcastle Brown’s appeal against a defamation ruling, leaving her liable for damages over RM 435,000. RSF condemned the decision as an effort to silence the journalist, who is known for reporting on corruption scandals.

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Malaysia’s Federal Court has dismissed British journalist Clare Rewcastle Brown’s appeal against a defamation ruling, leaving her liable to pay damages exceeding RM 435,000 (US$103,325).

The defamation suit, which RSF (Reporters Without Borders) describes as part of a broader effort to silence journalists reporting on corruption, relates to a statement in Rewcastle Brown’s 2018 book, The Sarawak Report – The Inside Story of the 1MDB Expose.

The journalist has faced legal challenges ever since, including both civil and criminal cases.

Rewcastle Brown, known for exposing Malaysia’s 1MDB financial scandal, was accused of defaming the Sultanah of Terengganu, the wife of a senior political figure.

The defamation suit stems from a misidentification error in the book, which wrongly stated that the Sultanah, rather than the Sultan’s sister, was connected to a businessman involved in the scandal.

Rewcastle Brown quickly corrected the mistake and issued an apology in 2018. Her legal team has argued that the error does not constitute defamation or criminal libel.

The Sultanah had initially sought RM 100 million in general damages, but the court ultimately awarded a much smaller sum of RM 300,000 (US$71,230) in damages, along with RM 135,000 (US$32,095) in legal costs. Additional fees are expected.

The Federal Court’s decision on 10 September 2024 closes Rewcastle Brown’s legal avenues for appeal in the civil case.

Reporters Without Borders has condemned Malaysia’s handling of the case, asserting that it is intended to intimidate other journalists from reporting on corruption.

Fiona O’Brien, UK Bureau Director of RSF, commented: “This case should never have made it to court. The accusations of defamation are nonsensical. The underlying agenda appears to be to silence Rewcastle Brown and warn other Malaysian journalists away from reporting on corruption.”

In a separate criminal case, Rewcastle Brown was sentenced in absentia to two years in prison in February 2024. She continues to appeal the criminal charges but has faced significant challenges in defending herself. The British government has not commented publicly on her case.

RSF also noted that Malaysia, once ranked 73rd in the World Press Freedom Index, has dropped to 107th in 2024, amid rising political instability and a pattern of defamation suits against journalists.

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