Monday, March 29, 2010

GST & Proton Emas

As expected the government puts off the GST implementation to a later date. The reason I said 'expected' was because just like his father PM Najib will honor the interests of the people first. One argument is if the total sale price of a good will be the same with or without GST then let's continue the present system.


PROTON EMAS

At the recent Geneva Motor Show Proton unveiled 'Emas' or gold i.e. Proton's first hybrid prototype model. To me the car looks funny because it is so compact but then it was just a prototype. In order to compete globally, Proton must make sure its hybrid model will never encounter problems as other car manufacturers.
One aspect is price. Malaysians are used to think quality is price. Foreign made cars are expensive in Malaysia. Foreign brands which sell for less than RM100,000 include Toyota Vios, Nissan Grand Livina and Kia Forte. It is a known fact that car prices in Malaysia is among the highest in the world.
It all started in 1992 when Proton began manufacturing the Iswara. Due to the high Yen and RM exchange rates Proton has to increase its car prices every 6 months. Thus the government must impose high tariffs for CBU cars. Even then Yen was unstable to the greenback.
I don't understand why Proton make domestic cars which are not up to the European standards. Recently Tun Dr Mahathir revealed that Proton has to make more than 200 modifications for its Saga BLM model to be exported to the UK.

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