The Chronicle of Malaysian Automotive Industry

The Chronicle of Malaysian Automotive Industry

I was first exposed to the automotive industry during my tenure with the Commerce International Merchant Bankers Berhad (CIMB) in 1995. I was in Corporate Finance and had to write various sectoral studies amongst thick full of other documentations for submissions to the Securities Commission for various companies undertaking mergers & acquisition and IPOs. Those companies in my portfolio were mostly in automotive... probably the reason being why i am still passionate about the automotive industry 15 years later.

I summarised as follows the evolution of the automotive industry in Malaysia that will probably answer various public critics (in cyber space or the media) in my call to de-regulate the hire-purchase commission, de-regulate the fix motor tariff as well as the establishment of an AUTOMOTIVE COUNCIL as the custodian to the automotive eco-system.

The automotive eco system should be defined as all relevant sectors that is instrumental to the the stability of the automotive industry, such as the automotive manufacturers, assemblers, suppliers, vendors, distributors, dealers, banking institutions and insurance institutions.

The Chronicle

1963- Malaysia began to encourage the establishment of the automotive industry based on recommendations of the Colombo Plan

1964- Policy of encouraging the assembly of automobiles and the manufacture of components parts was announced

1967- Government approved the operation of six (6) assembly plants mainly joint venture projects between European automobile manufacturers and local partners

1982- Cabinet approved the National Car project

1983- Heavy Industry Corporation of Malaysia (HICOM) signed an agreement with Mitsubishi Corporation to manufacture Malaysia national car

1984- Launch of National Car Project- Perusahaan Otomobil Nasional (Proton) to increase level of technology and develoment of intellectual property in the automotive industry. In line with the national car project, Malaysia Ministry of International Trade and Industry (MITI) determine the Nett Selling Price (NSP) of BOTH national and foreign cars.

1985- Production of 1st national car Proton Saga began. MITI approved the NSP taking into consideration various factors including the income (1) received from previously Hire-Purchase Commission (now replaced by Handling Fees) paid by banks to the car distributors and dealers as the intermediary between the customers and banks; (2) insurance commission received (Insurance agent commission was 25% of premium paid. The participation of Bank & financial institutions and Insurance companies supported and ensure the viability of the newly-born national car project.

1992- Perusahaan Otomobil kedua (PERODUA) was established primarily to complement Proton and expand local automotive product range (supplying smaller and more affordable vehicles) as well as support the vendor for component and parts manufacturing.

Both Proton and Perodua are now in direct competition in the same market segment and had driftered away from the objectives of the 1st and 2nd national car project.

1996- The Insurance Act 1966 superceded the Insurance Act 1963. Agency commission is now revised to a fix 10%.

The support by via the insurance agency commission that determined the low NSP for the national car project was ignored.

1997- Hire-puchase commission and additional incentives for salesmen paid by banks were abused and offered for all car make & models (not restricted to proton).

2000- Bank Negara Malaysia revoked the hire-puchase commission after being proposed by the association of finance companies/Banks. Bank Negara Malaysia introduced handling fees with effect from 13 July 2000 after various appealed by PEDA, EDAM and PDA. The handling fees is regulated with a maximum ceiling.

The hire-purchased commission was revoked without any reference to the NSP that was kept low (by MITI) to ensure the viability of the national car project. In year 2000- the NSP was still determined by MITI.

2003- MITI no longer determined the NSP and only acknowledge and monitors the price set by the car manufacturers. The Policy change was to aid liberalisatoin and development of the automotive industry in Malaysia.

2004- Influx and abused of Authorised Permits (APs) and under-declared imported cars. Malaysian public was cheated of billions in taxes and import duties. There were many duplications of resources from the under-utilised assembly to manufacturing plants (approved by MITI).

This had drastically and substantially affected the national car project project.

2005- Announcement and launching of the Malaysia National Automotive Policy.

The NAP was constructed and launched by the previous 4th floor (was not even launched by any Minister), with negligible consultation with any stakeholders in the automotive eco-system.

2009- Proposal by PIAM and approved by Bank Negara Malaysia for Motor Insurance mandatory direct commission rebate to customers.

If the move was proposed and approved for the benefits of Malaysians then PIAM and Bank Negara should de-regulate the current tariff instead. Malaysia will benefit better from a de-tariff or variable tariff similar to other neighbouring and developed countries. Currently, low risk customer such as female car owners are being discriminated and are paying hefty premium similar to the high risk customers.

Sadly, there is no 'Driver' and/or custodian for the automotive eco system although the automotive industry was earmarked to boost the industrialization process to enable Malaysia to be a developed nation by the year 2020 (Ref: here).

Bank Negara Malaysia, Ministry of Finance, Ministry of International Trade & Industry, PIAM (General Insurance Association of Malaysia), Association of Banks, Ministry of Domestic Trade and Consumer Affiar have all proposed, implemented, revised and introduced policies and instructions that will be instrumental to the downfall of automotive industry and its eco system in Malaysia. Without a custodian or a statutory body to drive and spearhead the automotive in Malaysia, there will be more adverse policies being introduced by different Ministries and statutory bodies.

The national car project, the automotive industry as well as various government policies introduced, must be rationalise, consolidate and review under a statutory body, the proposed MALAYSIAN AUTOMOTIVE COUNCIL. A rationalisation of the many automotive assembly and manufacturing plants and a more structured eco system could provide better stability to the automotive industry.

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1 SCHOOL FOR ALL / 1 Sekolah untuk Semua

Yesterday, I stumbled across the movement for 1 SEKOLAH UNTUK SEMUA petition @ Rocky’s Bru which is in my ‘followed blog list’. I read on to understand the petition. Earlier this month, on 2 May 2009, a group of pro-unity bloggers had started a campaigned for 1 SCHOOL FOR ALL MALAYSIANS / 1 SEKOLAH UNTUK SEMUA.


I signed the petition in favour of “1 School for all” as the 1,124th Signature and joined the blogosphere group in their campaign because I like what they are trying to do. Various attempts have been laid towards the 1 bangsa, Bangsa Malaysia including the Vision 2020. With a segregation of race sentiments in the present generations and the instilled similar sentiment in the present and future kids via the vernacular school system, Malaysians will continue to be apportioned by race. The vision of a developed nation by 2020 although currently is far reached, is possible if all Malaysians are united.

The foundation to forge nation unity and national integration is through the future children in a Singular School System. The concept of vernacular school must be streamlined for a singular school system for all Malaysia. Join and signed the petition here.


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FIX MOTOR TARIFF SHOULD BE REVISED INSTEAD OF THE MANDATORY REBATE

PROTON EDAR DEALERS ASSOCIATION MALAYSIA

Press Release

“FIX MOTOR TARIFF SHOULD BE REVISED INSTEAD OF THE MANDATORY REBATE”

MAY 2009, KUALA LUMPUR. “The motor tariff should be revised for the benefits of the public in line with the rest of the world instead of a direct rebate” said Armin Baniaz Pahamin, Acting President Proton Edar Dealers Association Malaysia (PEDA) commenting on the YB Dato Chor Chee Heung, Deputy Finance Minister remarked on the implementation of the mandatory rebates for car owner.

1. The rest of the world, typically the developed countries like the United Kingdom, Australia and Japan, Motor Insurance tariff premium are variable according to age, gender, occupation, geographical area, location of car parked (owned house or public car park), type of car and the cylinder capacity.

2. For example, in the developed countries, lower risk customers are classified as a middle age lady drivers whom worked as a teacher driving a 1.3cc Proton saga. Example of Higher risk customers are 19 years old man driving a 2.0 Fiat Coupe turbo. The lower and higher risk customers pay a different insurance premium.

3. Extra loading are extended to customer with higher risk depending on the risk hazard listed above whilst customer with lower risk pay a cheaper premium.

4. Malaysia adopted a fix-tariff in discrimination to the low risk customer and at the advantage of the higher risk customer.

5. Customers do not have any option for a cheaper tariff except to pay the fix tariff regulated by Bank Negara even if they approached all the 36 General Insurance companies in Malaysia.

6. The public will benefit better with a non-fix tariff rather than the mandatory rebate. PIAM or the Bank Negara should review to revise the current fix tariff in favour of a variable non-fixed tariff that will be of direct benefit to the public.

7. With a variable non-fix tariff, insurance agents can provide and a better services by offering and advising varieties of insurance packages (under different tariff) to cater for the public’s individual needs.

8. If the fix-tariff is revised in favour of a variable non-fix tariff, then the rebate can be extended in favour to customers whom opt not to use the agent’s services or advice (to choose which tariff that best suited them).

9. Until such a revision is made, PIAM should withdraw the proposal.

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THE STAR: SET UP COUNCIL TO REGULATE AUTOMOTIVE ECO-SYSTEM

The Star online. Wednesday May 20, 2009

Group: Set up council to regulate automotive eco-system

KUALA LUMPUR: Proton Dealers Association Malaysia (Peda) yesterday called for the setting up of a statutory automotive council which will regulate and administer any new or revised governmental policy pertaining to the automotive eco-system.

Any issue which is related to the automotive eco-system should be referred to the proposed automotive council, the association said in a statement yesterday.

So far, there was no statutory body that represented the interest of the automotive eco-system although the motor vehicle industry was a significant sector that contributed substantially to the country’s economic growth, acting Peda president Armin Baniaz Pahamin said.

“In the absence of a statutory council to represent the automotive eco-system, the motor vehicle industry will be weaker and will continue to deteriorate,” he said.

Citing the recent proposal by the General Insurance Association of Malaysia on direct rebate for motor insurance, he said the proposal which was approved by Bank Negara, would actually see motor vehicle dealers losing more than 20% income.

”The proposal will destroy the automotive eco-system, specifically the motor vehicle dealer’s network. Motor insurance is an important segment of the automotive eco-system,” Armin said.

He said currently all new and used car dealers were general insurance agents and motor insurance premium generated by car dealers were in excess of RM1mil per annum per agency.

He said these premiums subsidised the increasing overhead cost as well as determine the break-even profitability of car dealers, especially during an economic crisis.

He said bypassing agencies with a direct rebate to customers would contribute to a higher unemployment rate and further weaken the automotive eco-system.

Referring to the motor vehicle industry as “bank dominated market,” Armin said without bank facilities for car vendors and dealers and hire-purchase end-financing for car buyers, the motor vehicle industry would fail.

“Currently, banks are already forcing dealers to switch to their own insurance company by imposing hefty penalties and higher interest on banking facility that does not subscribe to the relevant insurance company,” he said.

BERNAMA: PEDA Cadang Tubuh Majlis Automotif Kawal Selia Dasar

BERNAMA: PEDA Cadang Tubuh Majlis Automotif Kawal Selia Dasar

KUALA LUMPUR, 19 Mei (Bernama) -- Persatuan Pengedar Proton Malaysia (PEDA) hari ini menyarankan supaya majlis automotif berkanun ditubuhkan bertujuan mengawal selia dan mentadbir sebarang dasar kerajaan yang baru atau yang disemak semula berkaitan dengan sistem eko automotif.

Sebarang isu yang berkaitan dengan sistem eko automotif seharusnya dirujuk kepada majlis automotif yang dicadangkan itu, kata persatuan itu dalam satu kenyataan di sini hari ini.

Sehingga ini, tiada terdapat badan berkanun yang mewakili kepentingan sistem eko automotif meski pun industri automotif merupakan sektor yang signifikan yang menyumbang dalam jumlah yang besar kepada pertumbuhan ekonomi negara, kata Pemangku Presidennya Armin Baniaz Pahamin.

"Dengan ketiadaan majlis berkanun bagi mewakili sistem eko automotif, industri automotif akan menjadi lebih lemah dan akan terus merosot," katanya.

Mengambil contoh usul oleh Persatuan Insurans Am Malaysia (PIAM) baru-baru ini berkenaan rebat langsung bagi insurans motor, katanya cadangan itu yang telah diluluskan oleh Bank Negara, sebenarnya akan menyaksikan pengedar automotif kehilangan lebih 20 peratus daripada pendapatan mereka.

"Cadangan itu akan memusnahkan sistem eko automotif, khususnya jaringan pengedar automotif. Insurans motor merupakan satu segmen eko-sistem automotif yang penting," kata Armin.

Katanya sekarang ini kesemua pengedar kereta baru dan terpakai merupakan ejen insurans dan premium insurans motor yang dijana oleh pengedar kereta adalah melebihi RM1 juta setahun bagi setiap agensi.

Katanya premium ini mensubsidikan kos overhed serta mengenal pasti keuntungan balik modal pengedar kereta terutamanya semasa krisis ekonomi.

Dengan memintas agensi dengan mengenakan rebat langsung kepada pelanggan akan menyumbang kepada kadar pengangguran yang lebih tinggi dan melemahkan lagi eko-sistem automotif, katanya.

Merujuk industri automotif sebagai satu "pasaran didominasikan bank", Armin berkata tanpa kemudahan bank untuk vendor dan pengedar kereta dan pembiayaan akhir dan sewa beli bagi pembeli kereta, industri automotif akan berkubur.

"Sekarang ini, bank telah pun menguatkuasakan supaya para pengedar menamatkan khidmat syarikat insurans mereka sedia ada sebagai memihak kepada syarikat insurans yang dipunyai bank dengan mengenakan penalti yang tinggi dan kadar faedah yang lebih tinggi ke atas kemudahan perbankan yang disediakan kepada pengedar (sekiranya pengedar tidak melanggan dengan syarikat insurans bank)," katanya.

Pengedar telah diberitahu mereka tidak akan menikmati sebarang komisyen pembaharuan semula insurans apabila mereka melanggan dengan insurans bank menerusi pembatalan kontrak. Semua komisyen bagi pembaharuan semula insurans akan dirampas oleh bank.

PEDA tidak akan teragak-agak untuk menasihati ahli-ahlinya dan persatuan pengedar kereta automotif yang lain untuk memboikot ahli PIAM yang menyokong dan melaksanakan cadangan berkenaan.

-- BERNAMA

UTUSAN MALAYSIA 20 MEI 2009/ PEDA gesa boikot PIAM, galak guna Takaful

Berikut adalah kenyataan akhbar yang disiarkan di Utusan Malaysia pada 20 May 2009. Kenyataan Akhbar juga disiarkan oleh Business Times pada 20 May 2009. Berita Astro Awani, Berita Bernama telah membuat siaran kenyataan PEDA pada 19 May 2009.

Peda gesa boikot PIAM, galak guna takaful

KUALA LUMPUR 19 Mei - Persatuan Wakil Jualan Proton Edar (Peda) meminta kesemua pengedar kereta baru dan terpakai serta ejen insurans memboikot ahli Persatuan Insurans Am Malaysia (PIAM) dan menyokong penggunaan takaful (insurans Islam).

Pemangku Presidennya, Armin Baniaz Pahamin berkata, cadangan yang dikemukakan PIAM dan mendapat kelulusan Bank Negara Malaysia (BNM) akan menghancurkan ekosistem industri automotif terutama rangkaian para pengedar kereta.

''Ini kerana komisen premium dan pembaharuan insurans kenderaan menyumbangkan lebih 20 peratus jumlah pendapatan bersih pengedar untuk satu kereta.

''Segmen insurans kenderaan penting bagi ekosistem automotif,'' katanya dalam kenyataan dikeluarkan di sini hari ini.

Beliau berkata demikian selepas cadangan PIAM mendapatkan rebat terus untuk insurans kenderaan diluluskan oleh BNM.

Cadangan PIAM bertujuan melindungi kepentingan syarikat insurans dalam usaha menguasai pasaran antara syarikat milik bank dan bukan milik bank.

Katanya, pengedar kenderaan bakal kehilangan lebih 20 peratus pendapatan berikutan pelaksanaan cadangan PIAM.

''Dengan evolusi berlaku dalam industri kenderaan di Malaysia dan sebagai mematuhi syarat Akta Sewa Beli Kenderaan 1967, pengedar kereta dan kereta terpakai telah menjadi ejen kepada penginsurans untuk menyediakan tambah nilai kepada pelanggan dan institusi kewangan.

''Premium yang disumbangkan oleh pengedar kenderaan adalah sekitar RM500,000 hingga RM1 juta setiap tahun.

''Premium ini akan memberikan subsidi untuk mengatasi peningkatan kos overhed serta menentukan kedudukan pulang modal untuk pengedar kereta terutama semasa krisis ekonomi,'' katanya.

Cadangan PIAM telah menyebabkan pengedar kereta tidak lagi menerima komisen pembaharuan insurans seperti yang dinikmati sebelum ini.

Tambah Armin, dengan krisis ekonomi ini, cadangan itu akan memburukkan industri automotif dan tidak memberikan manfaat kepada syarikat insurans dan agensinya.

''Melangkaui agensi dengan rebat terus kepada pelanggan akan menyumbangkan kepada peningkatan kadar pengangguran dan melemahkan ekosistem automotif,'' tambah beliau.

Garden International School Sports day 2009

Garden International School Sports Day 20 May 2009

GIS organised the school annual sports day marking the ending of the semester and education year. I attended the Garden International School (GIS) Sports day on 20 May 2009 as part of my new year resolution to be more involved with society :-) I arrived at the GIS early at 7:45am. The traffic entering the school was bad but it was well-managed by the School security guards. .


The school was strictly guarded but authorised guests and parent were given a permanent pass that allows them to enter and leave the school compound anytime at their convenient which was in contrast to Sri KDU. Sri KDU restricted ALL visitors and even parent from entering the school compound. At GIS, parents are encourage to be at school. Their guards enforced it strictly ala police and had at times offended many visitors and parent. Security guards, teachers and staff at GIS scored A1 for public relation. Everybody are so friendly and cheerful. I walked to the bistro-like canteen and saw the wide varieties of food choices but i had a plateful of yummilicious hot nasi lemak.

The canteen that broke my no-carbo diet.....

The Sports day began with speech & briefing.. but it was an enjoyable briefing and not one of those boring reminders, reprimands and warnings that usually left guests, parent and students endlessly yawning. The Students, though young, were all so hyper and active impatiently awaited the games prepared for the sports day. The students were divided into 4 teams segregated by different colours, namely blue, red, yellow and green.

So discipline and well mannered listening to the Sports day briefing

There were 7 games prepared for the carnival and students were further divided into a team of three.

Attending the GIS reminded me of my childhood when i was at 3 different primary schools between standard 1 to standard 6. I was at SRK Sultan Ismail 1 in Kota Bharu, Kelantan from standard 1 to standard 2, SRK Iskandar at Alor Star, Kedah for Standard 3 to Standard 5 and finally studied Standard 6 and completed primary school at SRK Kampung Tunku, Petaling Jaya, Selangor. i did not attend 3 schools because i was kicked-out but i change school when my father was transferred from to various states by the government of Malaysia. The government make full use of my father whom was a loyal civil servants until his service was no longer required as he turned 55, 8 years ago.

I had a great time at all the three different schools but that was primary school.. Secondary school ? teens... was better..!!! i was living life to the fullest. Today's event, being closer to society and going to school functions reminded me to always be young.. :-D Those were the days when recession, inflation or elections meant nothing. It was better than attending Proton and various other functions that were surrounded by OLDER and more serious CIRCLES ahaks.. ;-)


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BOIKOT PIAM SERU PEDA KEPADA PENGEDAR PENGEDAR KERETA DAN EJEN INSURANCE AM

PERSATUAN PROTON EDAR MALAYSIA (PEDA)

KENYATAAN AKHBAR

“PEDA MENYERU SEMUA PENGEDAR KERETA BARU DAN TERPAKAI SERTA SEMUA WAKIL AGEN INSURANS UNTUK MEMBOIKOT AHLI PIAM DAN MENYOKONG TAKAFUL “

Mei 2009, Kuala Lumpur. “ Komisyen premium insurans kenderaan yang baru dan pembaharuan insurans menyumbang lebih dari 20% pendapatan bersih bagi setiap kereta. Cadangan usul PIAM yang diluluskan oleh Bank Negara melalui surat pekeliling kepada PIAM pada 17 April 2009 akan memusnahkan Sistem Eco Otomotif, terutamanya rangkaian pengedar otomotif. Insurans kenderaan merupakan satu segmen penting dalam Sistem Eco Otomotif.” Kata Armin Baniaz Pahamin, Pemangku Presiden Persatuan Pengedar Proton Edar Malaysia (PEDA).

1. Melalui evolusi industri otomotif di Malaysia dan selaras dengan Akta Sewa Beli 1967, pengedar kereta baru dan terpakai telah menjadi wakil agensi kepada syarikat insurans am bagi meningkatkan khidmat tambahan kepada pelanggan dan institusi kewangan. Premium yang disumbangkan oleh pengedar-pengedar ini adalah dari lingkungan RM500,000.00 sehingga RM1,000,000.00 setahun.

2. Premium ini menjadi subsidi kepada kenaikan pembelanjaan overhed kini dan juga merupakan penentuan untung pulang modal pengedar-pengedar terutamanya semasa kemelesetan ekonomi.

3. Disaat krisis ekonomi ini, jumlah pengganguran semakin meningkat dan ianya telah menjejas industri otomotif dengan teruk. Cadangan usul PIAM akan menjejaskan lagi Sistem Eco Otomotif dan tidak mendatangkan faedah kepada kedua-dua syarikat insurans dan wakil agensinya.

4. Tindakan memintas wakil agensi dengan memberi potongan rebet mandatori terus kepada pelanggan akan meningkatkan lagi kadar pengganguran yang lebih tinggi dan melemahkan lagi Sistem Eco Otomotif.

5. Ekoran kemelesetan resesi 1998, Persatuan Bank-Bank Malaysia (ABM) telah membuat cadangan dan diluluskan oleh Bank Negara untuk pemansuhan komisyen sewa beli yang telah ditentukan oleh pasaran dan kemudiannya mengenakan penyelarasan caj pengendalian dengan had maksima. ABM yang mewakili kepentingan pihak bank telah menyebabkan pengedar-pengedar otomotif hilang 50% dari punca pendapatan mereka.

6. Kini, Persatuan Insurans Am Malaysia (PIAM) membuat cadangan dan Bank Negara pula telah meluluskan cadangan rebet mandatori insurans tersebut. PIAM mewakili kepentingan syarikat-syarikat insurans yang mengutamakan bahagian pasaran diantara syarikat insurans ‘milik bank’ dan ‘bukan milik bank’. Pengedar-pengedar otomotif akan kehilangan lebih 20% pendapatan mereka ekoran dari cadangan usul PIAM.

7. Kedua-dua ABM dan PIAM adalah badan berkanun (statutory association) yang mewakili kepentingan pihak bank dan syarikat insurans di Malaysia. Tidak ada satu pun badan berkanun yang mewakili kepentingan Sistem Eco Otomotif walaupun industri otomotif merupakan satu sektor penting bagi penyumbangan pertumbuhan ekonomi.

8. PEDA menyeru penubuhan satu ‘Majlis atau Badan Berkanun Otomotif’ untuk menyelaras dan melaksanakan polisi kerajaan yang membabitkan Sistem Eko Otomotif yang baru ataupun yang disemak. Semua isu-isu atau cadangan yang berkaitan dengan Sistem Eko Otomotif seharusnya dirujuk kepada ‘Majlis atau Badan Berkanun Otomotif’ yang dicadangkan dan bukannya dari PIAM atau ABM yang hanya mewakili kepentingan syarikat insurans berlesen dan bank-bank di Malaysia.

9. Kebanyakan ahli-ahli PIAM adalah milik bank. Bank dapat mempengaruhi cadangan usul PIAM dengan mudah dan ia tidak menggalakkan pertumbuhan atau memperkukuhkan daya tahan Sistem Eco Otomotif.

10. Bank menguasai pasaran industri otomotif. Tanpa kemudahan bank yang disediakan kepada pengedar kereta dan juga pinjaman sewa beli kepada pembeli kereta, industri otomotif akan gagal. Pihak bank telah memaksa pengedar-pengedar menggunakan syarikat insurans milik bank dengan mengenakan penalti dan bunga faedah yang tinggi melalui kemudahan bank yang diberi kepada pengedar (yang tidak melanggani syarikat insurans milik bank).

11. Pengedar-pengedar telah dimaklumkan bahawa mereka tidak akan menikmati apa-apa komisyen dari pembaharuan insurans yang telah mereka langgani secara paksaan melalui syarikat insurans milik bank. Semua komisyen dari pembaharuan insurans itu menjadi milik bank.

12. Industri otomotif merupakan sektor utama dalam ekonomi Malaysia dan adalah sebahagian dari setiap ‘Rancangan Malaysia’. Polisi Otomotif Nasional juga telah diperkenalkan untuk sektor otomotif. Dengan tidak adanya majlis atau badan berkanun untuk mempertahan dan mewakili Sistem Eco Otomotif, industri otomotif akan menjadi lebih lemah dan terus merosot.

13. PEDA tidak akan teragak-agak untuk menasihati ahlinya dan juga persatuan pengedar-pengedar otomotif yang lain untuk memboikot ahli-ahli PIAM jika cadangan usul itu dilaksanakan.

PEDA CALLED ALL CAR DEALERS ASSOCIATION TO BOYCOTT PIAM

PROTON EDAR DEALERS ASSOCIATION MALAYSIA
Press Release

“PEDA CALLED ALL AUTOMOTIVE NEW AND USED CAR DEALERS AND ALL INSURANCE AGENTS TO BOYCOTT PIAM MEMBERS AND SUPPORT TAKAFUL”

MAY 2009, KUALA LUMPUR. “New insurance premium and renewal of motor insurance commission contribute more than 20% of proton dealer’s total net income per car. PIAM’s proposal that was approved by Bank Negara via its circular to PIAM dated 17 April 2009 will destroy the Automotive Eco System, specifically the automotive dealer’s network. Motor insurance is an important segment of the automotive eco-system” said Armin Baniaz Pahamin, Acting President Proton Edar Dealers Association Malaysia (PEDA).

1. With the evolution of the motor industry in Malaysia, and in keeping with the requirements of the Hire Purchase Act 1967, new and used car dealers have become agents to the general insurers to provide value added service to their customers and financial institutions. The premium contributed by these dealers can range from RM500,000.00 to as much as RM1,000,000.00 per annum.

2. These premiums subsidised the increasing overhead cost as well as determine thebreak-even of car dealers especially during these economic crisis.

3. During this economic crisis, unemployment rate are increasing and the automotive industry are badly affected. PIAM proposal will further affect the automotive eco system and does not benefit both the insurance company and its agencies.

4. Bypassing agencies with a direct rebate to customers will contribute to a higher unemployment rate and further weakens the automotive eco-system.

5. Post-1998 recession, the Association of Banks in Malaysia (ABM) proposed and Bank Negara approved the abolishment of the market dictated Hire-Purchase commission and later imposed a regulated ‘Handling Fees’ with a ceiling capping. ABM acted in the interest of Banks and the automotive dealers lost more than 50% of their total income.

6. Now, the General Insurance Association of Malaysia (PIAM) proposed and Bank Negara approved a direct rebate for Motor Insurance. PIAM acted in the interest of the insurance companies in their struggle to capture market share between ‘Bank-owned’ and ‘non-bank-owned’ insurance companies. The automotive dealers will lost more than 20% income from PIAM proposal.

7. Both the ABM and PIAM are statutory associations and acted in the interest of the Banks and Insurance Company in Malaysia. There is no statutory body that represented the interest of the automotive eco system although Automotive Industry is a significant sector that contributed substantially to the Malaysia economic growth.

8. PEDA call for the establishment of a statutory “Automotive Council” to regulate and administer any new and/or revised governmental policy pertaining to the automotive eco system. Any issue pertaining to the automotive eco system should be referred to the proposed ‘Automotive Council’ and not by PIAM or ABM whom only acted on behalf of the license general insurance companies and Banks in Malaysia.

9. PIAM proposal will not revitalise the automotive eco system.

10.Automotive industry is Bank dominated market. Without Banks facilities for car vendors & dealers and hire-purchase end-financing for car buyers, the automotive industry will fail. Currently, banks are already enforcing dealers to terminate their existing insurance company in favour of Bank owned insurance company by imposing a hefty penalty and higher interest to the banking facilities rendered to the dealers (if the dealer do not subscribed to the bank insurance company)

11.Dealers were impliedly told they will not enjoy any insurance renewal commission when they subscribed to the bank insurance under force majeure. All commission for the insurance renewal are forfeited by the Bank.

12.Automotive industry contributed significantly to the Malaysia economy and is part of every 5 year Malaysia Plans (Rancangan Malaysia). A National Automotive Policy was also introduced for the automotive sector. in the absent of a statutory council to represent the Automotive Eco System, the automotive industry will be weaker and will continue to deteriorate.

13.PEDA will not hesitate to advice our members and other automotive car dealers association to ‘Boycott” members of PIAM that supported and implemented the proposal in favour of Takaful.



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ROYAL MALAYSIAN POLICE/Polis Diraja Malaysia

ROYAL MALAYSIAN POLICE

A huge trailer bearing plate number WSC 2033 scrapped the rear of my sister's Jaguar at Desa Sri Hartamas on 16 May 2009. it was 2:45pm and there were witnesses at the scene. I was shopping for running shoes the New Balance store, One Utama when i received the news. i rushed to the scene immediately and saw Suhaimi, my personal trainer, rhiza my brother in law (whom co-incidentally were there too), and many others. Fortunately, Emi was not injured.


The lorry owned by HENG CHEW NGO TRDG & TRANSPORT, 2448 East Street 9, JinJang Utara, Kuala Lumpur driven by an Indian. The driver rudely scolded my sister before disappearing away. Well-trained and vanity having carried her camera with her at all time, Emi took pictures of the lorry, plate number, road tax, company names and address . The Jaguar was immobilised. The damage to the car was extensive with a broken bumper, spoiler, rear and front door and puncture tyre and broken rim.


I called Tajul from Allianz Insurance, the insurer of our car whom immediately dispatched Mr Yap from the Allianz insurance panel workshop. In any unforeseen accidental event, always call your insurance company whom will advice and extend all form of assistant. Tajul & Allianz were efficient and i am grateful for their assistant. Mr Yap brought us to the Jalan Bandar Traffic Police Station to lodge a police report.

I was more impressed with the efficiency of the Police force personnel at the Jalan Bandar Traffic Police station. Corporal Abdul Razak attended us within less than 10 minutes of waiting. He took Emi's statement and printed the police report before politely directing us to the Investigating Officer Sgt Amran. We met Sgt Amran whom were polite and interviewed Emi in less than 5 minutes.

Another police officer took a picture of the damage jaguar. Within less than a total of 30 minutes from the arrival at the police station, everything was completed. Doing a police report for car accident was dreadful and used to take at least half a day but nowadays, our Police are very efficient and fast. Congratulation and SYABAS (well-done) to the Royal Malaysian Police.


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NEW BALANCE 15KM RUN.. @ Lake Garden

NEW BALANCE 15KM... killer race

KRRrrriiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiingg ........... its 5am and my blackberry phone alarm screamed annoyingly for 3 second before i switched it off and went back to sleep. I jumped out of bed at 5:36am when i suddenly realized its SUNDAY MORNING 17 May 2009.. the New Balance race! I woke my sister Emi ... This is my 4th New Balance race. I first participated in the new balance race in 2006 but i never kept track of any race timing until last year. I completed 2008, last year's New balance 15km race in 1 hour and 48minutes. Race timing was never my objective. i just wanted to run. i doubt, i can complete todays race before 2 hours.. in fact i hope to complete today's race before 2 hours and 30mins. i did not run train at all for already almost 3 weeks... with an exception of last week 10km Bomba run that was also a torture.


I love the New Balance race. It is the most organised race in all the running events in Malaysia. Everything was well organised... from the timing-chip & record, water stations, marshalls and ambulance... not that i need an ambulance but hey.. once i took part in the Ironman triathlon, Langkawi and the ambulance and police escorted slowly behind me.... and sigh.. i did end up being chauffered driven in the ambulance... collapsed on my 128th km cycle. The New balance race was also known for the best racing vest. The material and design was superb. The vest is even better and prettier than Adidas King of the road vest.


Todays run was... syiiiiok & exhilarating at first. i was enjoying the 'runners high' and woke up at Bukit Tunku... Didnt even know how I got there but was awoke by the killer terrain when i was completely out of breath. The race was all 'hilly' and my heart rate was constant at 168.. My speed was barely 7. On the 3.8th km from start, a whole bunch of ladies steadily and speedily ran passed me. Ladies start time was 15 minutes later than men!!

It was a tough run with the killer terrain from start to end and especially from the lack of training. I would usually blame the organiser, personal trainer, running partner and even blame the weather... for a tough run. but with the best organiser and every running partner's improved timing and a cooling route.. i can only blame ME... for the lack of discipline to train. Will train harder for the next run.. the Klang 21km race on 7 June 2009.


I completed the race in an excruciating 2 hours and 8 minutes and wanted a Nasi Lemak tangling as a reward but had Kanna roti canai instead.

Excruciating 2 hours & 8 minutes

NB Finisher............

Dont let the pictures deceived you though.. if there is one thing that i wont fail..... is to pose for the camera.. ahaks.. but really.......... the run was really really bad... the smiles were all a show.. :-)

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