PEDA: SOUTHERN 1 REGION PROTON DEALERS GATHERINGS

PROTON EDAR Dealers Association Malaysia (PEDA) made its first trip to Southern region for a healthy meeting and discussion. PEDA Committee was represented by the President Armin Baniaz Pahamin, Deputy President Dato Nik Izani, Vice President SB Siaw, Hon Treasurer Dato Yahya Jaafar, Secretary-General Malkeet Singh, Assistant Secretary-General Mohd Nor Azan, Committee member Dato Isa Indot. The meeting was help at New York Hotel, Johor Bharu.

Except for 2 dealers, the gathering was attended by all of Southern Region 1 PROTON dealers' directors and managers. Those that attended were from Datuk Yahya Jaafar (Alam Biru Sdn Bhd), Zulkifzaini Sahari (Alam Biru Sdn Bhd), Mr Wong Yong Seng (Autofin Associates (Johore) Sdn Bhd), Abu Bakar Ahmad (Edaran Sri Sutera Sdn Bhd), Mr SB Siaw (Edaran Sri Mestika Sdn Bhd), Mr Tan Seng Hin (Edaran Sri Mestika Sdn Bhd), Ms Chan Ley Hoon (Erat Sehati Sdn Bhd(, Mr Tan Seng Thong (Erat Sehati Sdn Bhd), Mr Ee Boon Keng (Kenari Bernas Sdn Bhd), En Amir Abu Bakar (Kulis Auto Sdn Bhd),  En Yahoda (Osmotrade Sdn Bhd), En Mohd Irwan Kassim (Seni Oto Edaran Sdn Bhd), Mr Leong Yi Shan (Speedway Motor Credit Sdn Bhd), Mr Leong Yi Shan (Speedway Motor Credit Sdn Bhd), Mr Kenny Ng (Speedway Motor Credit Sdn Bhd), Mr Jerry Tee Kai Ming (Temaco Auto Credit Sdn Bhd), Mr Tee Siong Guan (Temaco Auto Credit Sdn Bhd), Mr Brian Tien (Urus Usaha Sdn Bhd), Mr Alan Cheng Tim Tzen (Yoong Ming Auto Services & Parts Sdn Bhd).

GONG XI FA CAI WITH SUSAN CHEW AT PROTON EDAR BATU CAVES

28 January 2012. Proton Edar dealer in Batu Caves celebrated the Chinese New Year at the showroom No 571, Jalan Samudra Utara 1, Taman Samudra, Batu Caves and was graced by Yg Bhg Dato Zainal Abidin bin A'Ala, President Selayang Town Municipal Council. The dealership under Salient Progress Sdn Bhd was appointed PROTON EDAR authorised sales dealer in 2002. The local residence as well as orphans from Selayang orphanage house namely Pertubuhan Penyayang Raudah was also invited and 30 orphans were given t'shirts, ang paw and hampers.

The event that was hosted by Salient Progress Sdn Bhd Managing Director Susan Chew, its Board of Directors Mr Ronnie and Mr Chiam invited the Selayang Town Municipal Council President Yg Bhg Dato' Zainal Abidin bin A'Ala, its Council members En A. Rahim Ahmad Kasdi, En Ruslin Mohd Rosli, Puan Mastura and Pn Hajjah Khatifah Zamani Binti Sulong and me, Armin Baniaz Pahamin as the President for Proton Edar Dealers Association Malaysia (PEDA)

The event began with an opening speech from the Organising Committee Chairman Yg Brs Tuan Haji Nasiruddin bin Datu Ghulam.

Tuan Haji Nasiruddin bin Datu Ghulam

PROTON IN CRISIS

After the 12th Annual General Meeting, Proton Edar Dealers Association Malaysia (PEDA) has been busy with endless meetings after meetings.. which is typical when there are crisis. Barely a month into the new year, we were faced with three major crisis.. the most important crisis is the hire-purchase loan approval rate! On a random check with 20 dealers in various region throughout the nation, the average rejection rate is almost 70% with some dealers complaining of 90% rejection. This was due to the tightening of approval by the Central Bank of Malaysia. Banks gave a clear instruction to avoid submitting any hire-purchase application for PROTON BUYER with salary less than RM1,800 per month!! Even for customer with higher than RM1,800 salary a month, their disposable income MUST be more than RM800 per month. Meaning, after deducting income tax, SOCSO, EPF, housing loan, credit card balance, any other loans re-payment, scoring given on standard of living eg petrol, toll, food.. the disposable income must be RM800 or more. As a result, 70% of PROTON buyer's HP application were rejected. Are we in crisis? yes we are!!

POST-PROTON CONVENTION 2011 DISCUSSION AT PROTON EDAR - PUTRAJAYA

There were so much to digest post-PROTON network convention 2011 but one significant difference this year, is in PROTON EDAR's focus in our Sales Advisors. In the history of Proton Edar Sdn Bhd (PESB) or formerly known as USPD, every Chief Executive Officer during every annual network convention would reprimand if not short of threatening the termination of dealers for non-performance except for this year. The message was clear. All 230 showrooms nationwide now will not be terminated.. although there is a small print that says "unless they cannot achieve the target" but the small print is less scary now with a clearer direction forward. The direction forward is in the appointment of competent Sales Advisors. The sales advisors are the actual bloodflow of the brand. With an average 3 cars-sold per sales advisor per month or a total of 4,000 sales advisors employed in the network on the backdrop of 160,000 units of PROTON car sales per year, the number of sales advisors must be reduced.. not by dealers but centrally by PROTON Edar.

(picture- left) Gathering of some of PROTON EDAR-Putrajaya sales advisors for a post-convention briefing and Q&A a day after convention.
All new appointment of Sales Advisors by either the dealers or the branches will be vetted through centrally by PROTON Edar and those that qualify will be appointed by PESB via the issuance of an Identity Number and all the Sales Advisor with any fraud or Criminal Breach of Trust (CBT) or those selling less than 5 cars a month, will be slowly phased-put from the system.

PROTON NETWORK CONVENTION 2011

15 December 2011. Two weeks before the year ended, all PROTON Edar branches and authorized sales and service dealers nationwide gathered at the Sunway Pyramid Convention Centre, Sunway Hotel Resort and Spa for the annual PROTON Network Convention 2011 and it was the first gathering attended by less than a month old PROTON Edar Chief Executive Officer Ahmad Suhaimi Mohamed Anuar.

This year's convention was a bit unusual. It was held towards the year end compared to last year where the convention was held earlier in April 2010. PROTON Edar Chief Executive Officer Ahmad Suhaimi Mohamed Anuar was the first speaker. PEDA had a good and fruitful first meeting and discussion with Suhaimi last month in November. Suhaimi was sensitive and understood the predicament of the dealers which was very important to PEDA given that the dealers network dominated almost 80% of PROTON domestic car sales. PEDA outlined a series of historical issues that requires urgent attention and Suhaimi assured those issues will be addressed in due course. During the convention, Suhaimi reiterated the need for all sales advisors to be productive and for dealers to only maintain a minimal number of Sales Advisers. Soon all Sales Advisers must be vetted and approved by PESB before any recruitment by the dealer. This is important to ensure the network employed only the committed and dedicated Sales personnel.

THERE IS NO BETTER TIME THAN NOW!! TO BUY A PROTON!

Should we wait for the new year for a new car with a new manufacturer year printed on its excise and vehicle registration card? or should we buy a car now and lost 1 year of depreciation value is amongst those dilemma faced by car buyer every year as the year coming to an end. Contrary to popular belief that many buyer would wait for the new year, this last quarter is actually the best period to buy!! Why? because of these three factor, year-end sale is an opportunity not to be missed.

1. Because car manufacturers/distributors want to secure their market share and the automotive Total Industry Volume (TIV) only records vehicle registered ending 31 December.

2. Because vehicle manufacturer/distributor would not want to carry forward vehicle with excise bearing a year old car because of factor no 3 below.

3. Because of the myth that car buyer would wait for the new year to avoid unnecessary depreciation value. In reality, the depreciation value is subjective and actually dependent on the financial credibility of the person buying the car. If his financial credibility is strong, the said car can fetch a higher margin of finance and vice-versa if the financial track record is not strong. This is what determines the value of the car (used car). Of course, it is also subjected to overall supply and demand but in a nutshell, new car buyer would usually hang on to a new car for at least five years before replacing the car (due to the longer period of finance). Majority would look for the best bargain now and is less concern with the value 5 years from today and the best bargain for the year is towards the year end!!... which is NOW!

So, what does PROTON has to offer coming to this calender year end? Yes!!! Kick @ss price!! Only for limited period and limited stocks. All discounts below is applicable for all registration up to NOVEMBER irrespective of booking dates.

IS PROTON A 'MALAYSIAN' CAR?

I read this article with the above title "Is PROTON a Malaysian car?" at Lim Kit Siang's blog. The article was written by KJ JOHN and was first published on Malaysiakini.com on 30 August 2011 and re-posted on Lim Kit Siang's blog on 6 September 2011. KJ JOHN was in public service for 29 years and is now the dean of the Faculty of Economics and Policy Science at UCSI University, Malaysia.

The author first spoke on PROTON Managing Director Dato Seri Syed Zainal Abidin's personal experience with a taxi driver that was published in Ahmad Talib (former NST Managing Director) recent column. In that article, due to the misconception that the power window regulator will malfunction with high usage, Syed Zainal introduced himself, gave the taxi driver his personal handphone number, asked the taxi driver to use the power window and to call him if the power window malfunction when used (or overused). Syed Zainal assured the taxi driver that he will replace the power window regulator without charge-FOC if it malfunction. The whole objective was to correct the life-long misconception that had damaged PROTON's goodname. The confident of PROTON Managing Director to give his personal handphone number to the taxi driver speaks volume. The taxi driver never did call signalling the problem or the misconception was not true.

WAKE UP MALAYSIA AUTOMOTIVE ASSOCIATION

The Hire Purchase Act amendments third bill was tabled, approved and gazetted in Parliament on 23 June 2010 click HERE and search for parliament bill no D.R. 18/2010.

Almost all stakeholders share a common view that there are anomalies in the car buying process which resulted from lack of communication between those from the industry and policy makers.

However, there are even confusions among the stakeholders in the automotive industry.  Whilst PROTON EDAR Dealers Association Malaysia (PEDA) and most of other stake holders such as Perodua Dealers Association (PDA) which together (with PEDA) has more than 60% market share (in  passenger car sales Total Industry Volume), share a common view that the stakeholders were not consulted and discussed prior to the new law being gazetted (note the 'before the law being gazetted' and not implemented).

Dato Aishah Ahmad, President Malaysian Automotive Association (MAA) refuted a WRONG CLAIM in the Star newspaper on 23 June 2011.  PEDA and stakeholders did not refute that there existed consultations between Ministry and other stakeholders before the implementation. For the past 6 months, we have been in and out of various meetings after meetings to interpret what the new law says and in the preparation of a new Standard Operating Procedures (SOP) for our members.

What we are adamant is the consultation BEFORE the law was tabled, passed and gazetted in parliament. Policy Maker should consult, discuss and gather feedback from the industry PRIOR to the bill being tabled and approved. Once the law has been approved & gazetted, it became the law awaiting the relevant Ministry to implement and enforce. Talking at this stage will not change any part of the approved & gazetted law.

1ST DAY IMPLEMENTATION OF HP ACT 1967 (AMENDMENT 2010)

The past few months, PROTON EDAR DEALERS ASSOCIATION MALAYSIA (PEDA) which I am the President had been occupied attending meetings and dialogues with the Ministry of Domestic Trade, Co-operatives and Consumerism, attended various forums with lawyers that represented banks, discussed with various stake holders and have been in and out of various bank's head office for discussion in constructing a work flow process for all dealers nationwide to comply. PEDA too had the pleasure of meeting with the Association of Islamic Banking Institutions Malaysia (AIBIM) and bounced various ideas to be prepared for the first day of implementation.

I first blog on the Hire Purchase Act (1967) ("HP Act") amendments on 6 July 2010 at HERE when the bill was passed by parliament. HP Act is under the purview of the Ministry of Domestic Trade, Co-operative and Consumerism.

1.  The first action taken by PROTON EDAR dealers nationwide was to burn and throw all blank hire-purchase documents/agreements from any banks. When the new law take effect on 15 June 2011 onward, it will be an offense for any party to be in possession of a blank & incomplete hire-purchase agreement. [Paragraph 4B (2A)].

It is now an offense under the new HP Act to ask Car Buyer to sign a blank or incomplete Hire-Purchase agreement or any form(s) or document(s) related to the Hire Purchase agreement.

IMPLEMENTATION OF THE HIRE-PURCHASE ACT AMENDMENTS

NEWS RELEASE

Kuala Lumpur, 17 June 2011. "The Hire-Purchase Act amendments that was implemented on 15 June 2011 is not pragmatic and may halt the growth of the automotive industry ", said Armin Baniaz Pahamin, President, PROTON EDAR DEALERS ASSOCIATION MALAYSIA (PEDA).

OBJECTIVES & SPIRIT OF THE AMENDMENTS

1.     PEDA understand and support fully the objectives and spirit of the Hire-Purchase act amendments which we understand to achieve the followings:
(a) To protect customer from losing their booking and deposits paid to unscrupulous sales advisors and car dealers.

(b) To avoid unnecessary delay in refunding customers monies paid for booking and downpayment in the event of any cancellation of purchase or failure to secure hire-purchase loan.

(c) To avoid customer from having to pay unnecessarily for their Hire-purchase monthly loan repayment without taking possession of the car or before at least 21 days of taking possession of the car

(d) To avoid customers that cannot afford from buying the car by paying at least 10% downpayment from the car OTR

(e) to avoid customers being cheated of road-worthiness condition of the car and/or not cheated of a promised vehicle specification (including accessories)

NATIONAL CAR

2.     National automotive industry is always subjected to phantom bookings on speculation. Without any booking fees allowed to be collected at the point of booking, buyers can place a reservation at multiple outlets

3.   This bookings made at multiple outlets for 1 buyer is a waste of processing-resources and create inefficiencies. 

4.     With the implementation of the Hire-Purchase act amendments, buyer will only be required to pay booking fees after being served with the duly completed Schedule 2 (part 1 and 2). Banks will only issue Schedule 2 after the HP loan is approved. The approval for HP loan is now averaging around 3 days from the point of submission.

5.     With an average of 3 days before the actual payment for a booking fees, Customer may miss and be deprived to secure a promotion when the promotion ended before the booking fees is paid/loan approved. Booking for car is not secured until booking fees is paid.

6.     The ‘Turn-around’ time for the delivery of cars too will take an average 7 days extra from the normal practice. The expected 7 days delay in the buyer’s car delivery was due to no short-cut in complying with the documentation, availability of Bank marketing officer and for cheques/monies to be collected and deposited to Bank as the owner of the eventual car.
7.     Payment for car downpayment can only be collected by Banks or its authorized personnel. Currently, majority of Banks have not allow car dealers to collect monies on the Bank’s behalf except only AMBank.

8.     Customer too would need to pay more visits to the outlet and banks to signed documentation that can only be produce on a piece-meal basis. Example: FIRST VISIT: Customer’s visit the outlet to view the car and prepare documentation for hire-purchase loan application. SECOND VISIT: To pay booking fee, signed and be served with second schedule (part 1 & 2) upon HP –loan approval. THIRD VISIT: To pay full downpayment and signed HIRE PURCHASE Agreement. FOURTH VISIT:  take delivery of vehicle and signed Delivery Notice.
Current practice, Customer only needs to visit outlet once after paying the booking fees. 

9.     Dealers will face serious CASHFLOW problem because the booking and deposit must be first paid to the bank to equate the vehicle ‘On The Road’ price before the Bank is allowed to disbursed out to the car dealer. Dealers would be short of the booking fees/downpayment as a working capital to pay for the cars that they ordered from their principle.

10. Dealers would have to pay their Principle once they received the cars that they ordered.

11. Bank facility such as Payment Before Registration (PBR) that almost 100% of the dealers subscribed to, are also frozen and suspended since the new HP Act amendments was implemented. EON Bank was the first to suspend the facility to car dealer.

12. Used car prices will also be affected when it is costlier and more restrictive for second-hand car trader to buy and sell cars. With 70% of new car sales depends trade-in vehicles, the new car sale is also expected to be adversely affected.

With a suspended bank facility,  less working capital, more stringent requirement for hire-purchase loan approval and tougher trade-in cars to buy new vehicle, the overall national automotive growth is expected to be affected.

The implementation of the amendments that was gazetted without prior discussion with automotive stakeholders should be defer indefinitely and re-visited and reviewed by all stake-holders to ensure minimal affect on the industry's growth. PEDA and other stakeholders are aware of the objective and spirit and is ready to work with the Ministry to achieve the objective with minimal impact to the industry.

PROTON GETS A TOUCH OF CLASS

(click on picture to enlarge)

Armin Baniaz at the back taking pics with HP for this blog

The final touch has finally enshrined PROTON cars with a touch of CLASS (CENTER FOR LOGISTIC, ALLOCATION, STORAGE AND SERVICE) that was launched on 10 May 2011 by YABhg Tun Dr Mahathir Mohamad.

1.    5 years ago, when Dato Seri Syed Zainal Abidin Syed Tahir first took office as the Managing Director of PROTON, Malaysian were screaming at PROTON's inferior quality. Cars were delivered to customer with sub-standard quality, there were millions of backlog in warranty claims for defected parts and dealers working time were pre-occupied with customers complain.

Mohamad Syukor Ibrahim, PROTON Edar Chief Executive

PROTON EDAR AT CAR SHOW ALAMANDA, PUTRAJAYA

View the latest PROTON INSPIRA & the sportier face-lifted PROTON SAGA as well as other PROTON's latest variance at the ALAMANDA from 7 January 2010 to the 16 January 2010.

ALAMANDA is the only shopping mall in Putrajaya and is located 10 minutes away from our PROTON EDAR @ PUTRAJAYA SHOWROOM, No 1, Jalan Diplomatik 2/2, Presint 15, 62050 Putrajaya.

Amongst the many cars being displayed at the auto show are NAZA, TOYOTA, MAZDA CHERRY, HONDA etc........

PROTON SAGA FL

First it was the recruits at the ORIGINAL BOOTCAMP Malaysia that had a new look after completing their 8 WEEK CHALLENGE, then it was the ASIA BIGGEST LOSER whom completely rebranded themselves into a sexier, hotter and slimmer look after months of grueling training and food control. The ORIGINAL BOOTCAMP too had a new face with the new Chief's ORIGINAL BOOTCAMP logo after being in the market for almost 20 years and now....... YESSSIRE.. the PROTON SAGA too was given a new look.. sportier and sexier!!! with a leaner more masculine six inches  spoke sport rims.

The sportier looking Saga was unveiled yesterday by Dato Syed Zainal Abidin Syed Tahir, PROTON Managing Director at the PROTON Centre of Excellence in Shah Alam.

The launching of the New Saga FL was attended by all Banks, Insurance companies and media.

PROTON SAGA was launched in January 2008 and will be 3 years old in two weeks. Todate, there is exactly 204,150 Saga on Malaysia road and another 40,880 booking pending delivery.

SNAPSHOT AT PROTON EDAR NETWORK APPRECIATION DINNER 2010

3 December 2010, PROTON EDAR organized an appreciation night for the sales dealer, service dealers and stockist. The even was held at One World Hotel, Bandar Utama from 6:30pm to 10:30pm at the Ruby & Topaz Ballroom.

The colour theme for the night was Orange & Black. At the same time & date, the ORIGINAL BOOTCAMP @ Bandar Utama & USJ1 too organised their graduation night!! I was torn between the two but could not declined PROTON EDAR when the Organising Committee Chairman placed my seat at the Main VVIP table.

Fathul Rahman, Abdul Sidik Hamid, Armin Baniaz Pahamin, Jeff Lim Si Heong

3rd KUALA LUMPUR INTERNATIONAL AUTOMOTIVE CONFERENCE 2010 & 8th Kuala Lumpur International Motor Show 2010

1 & 2 December 2010. Putra World Trade Centre, Kuala Lumpur. The Asian Strategy & Leadership Institute (ASLI) and Malaysia Automotive Association co-organized the 3rd Kuala Lumpur International Automotive Conference 2010 (KLIAC 2010).

Dato Aishah Ahmad, President Malaysian Automotive Association, the Co-Organising Chairman for KLIAC 2010 and the Organising Chairman for KLIMS 2010 gave her opening remark followed by Mirzan Mahathir, President Asian Strategy & Learning Institute (ASLI) and also the Co-Oganising Chairman for KLIAC 2010.

The 3rd KLIAC 2010 and the 8th KL International Motor Show 2010 (KLIMS 2010) was then launched by the Minister of Transport, the Hon Dato Seri Kong Cho Ha.

I was invited as a panelist and speaker for Session 5 which was implemented ala the innovative and highly interactive ‘Talk Show’ and ‘Davos’ -style format that offered a relaxed, more conversational approach to disseminating needed information.

Armin Baniaz Pahamin (PEDA), Dr Steven C.M. Wong (ISIS), Dato Ghazzali Dato Mohd Yusoff (MIDA), Datuk Wan Mohamed Wan Embong (PVA), Daniel Fernandes (Asian Auto), Chips PS Yap (Motor Trader)

STAFF APPRECIATION- PROTON EDAR @ PUTRAJAYA

It was a very rare occasion to have 3 General Managers from Proton Edar at our Proton Edar Showroom in Putrajaya. The 3 GM(s) led the police escorted 6 Inspira car convoy and accompanied by dozens of Proton Edar personnel which we of course, made full use of their visit to our showroom...

We took the opportunity of their visit to recognized and introduced the team@ Proton Edar Putrajaya.

We invited Yg Berusaha En Kamsani Ahmad, Proton Edar General Manager (Sales) to introduced him to the customers and our team @ Putrajaya before giving him the honour to award the certificates for our TOP SALES ACHIEVERS for the month of October 2010.

The top achievers were also given a hamper as our gratitude for their performance... (of course the money & commission was well rewarded too).

PART-2: PROTON INSPIRA CONVOY TO PRECINT 15 & PRECINT 9 @ PUTRAJAYA

One of the stop during the PROTON INSPIRA Police escorted Convoy was at PROTON EDAR PUTRAJAYA Showroom No. 1, Jalan Diplomatic 2/2, Precint 15, 62050, Putrajaya.
This is a photo-blog of Proton Convoy 1 hour pit-stop at Putrajaya presint 15 & Presin 9.

No. 1, Jalan Diplomatic 2/2, Precint 15, 62050, Putrajaya

The Inspira technology..

PROTON INSPIRA @ PUTRAJAYA- PART 1

.

YB Dato Seri Mustapa Mohamad yesterday launched the latest addition to proton stable of cars, the PROTON INSPIRA at PROTON Centre of Excellence in USJ.

At PUTRAJAYA, we launched the vehicle with invitations sent to all PUTRAJAYA residence, Ministries and government agencies.

Our team-members were all ready to serve any inquiries and and to serve anyone.

My team members.. the back bone of PROTON EDAR @ PUTRAJAYA 

OFFICIAL LAUNCHING OF PROTON INSPIRA

10 November 2010. YB Dato Seri Mustapa Mohamed, Minister of International Trade and Industry officially launched the Proton Inspira at Proton Centre of Excellence, USJ Subang Jaya. Also present at the launching YABhg Tun Dr Mahathir Mohamad as PROTON Advisor, Dato Seri Nadzmi Salleh, PROTON Chairman, Dato Syed Zainal Abidin Syed Tahir, PROTON Managing Director, Mohamad Shukor Ibrahim, Proton Edar Chief Executive Officer, me as the President, PROTON EDAR DEALERS ASSOCIATION MALAYSIA (PEDA), Datuk Yahya Jaafar, Deputy President PEDA, other committee members of PEDA, Datuk Dr Wan Mohamed Wan Embong President PROTON VENDORS Association and Dato Aishah Ahmad President Malaysia Automotive Association.  The head and stakeholders of every PROTON ECO-system was presence.
 

Hasli Hashim, MAYBANK Managing Director, Hamirullah Boorhan, MAYBANK Head of Retail business (Automobile Financial Services), Zakri Mohd Khir Chief Executive Officer of Allianz General Insurance Company (M) Berhad (AGIC), Shahrul Hisham Tahir from AMBANK, Public Bank and other banks were all at PROTON. I was seated beside Tatsuo Makamura, Mitsubishi Corporation General Manager and Haji Rali Mohd Nor, Proton Parts Centre Managing Director.

Friday October 22, 2010

Peda: Car repossession up due to changes in Act

By DALJIT DHESI
daljit@thestar.com.my

But the rate will be slower once amendments gazetted

PETALING JAYA: The move to approve the amendments to the Hire Purchase Act may have contributed to the recent surge in repossession of cars, according to Proton Edar Dealers Association Malaysia (Peda) President Armin Baniaz Pahamin.

He said although Peda was not privy to the statistics of repossessed vehicles, it believed the rate of car repossession had increased after the amendments to the Act was passed in the second quarter of this year.

“Once the amendments have been gazetted, the percentage of repossessed vehicles should deteriorate again as it will be more tedious for banks to repossess the affected cars. Our concern is in the bank’s approval rate. “Conventionally, the approval for new car loan will also become more difficult when the banks’ exposure and risk is higher. When a bank cannot secure their asset via repossession, they too will revised their credit risk scoring,” he told StarBiz.