Malaysians have beaten expectations, buying a total of 536,905 vehicle units in 2009 versus the 500,000 units forecast by Malaysian Automotive Association (MAA). The better-than-expected results can be attributed to “the introduction of the Government’s stimulus packages and its decision to liberalise the 27 sub-sectors, the introduction of the auto-scrapping scheme, improved business confidence, increased consumer spending”, according to MAA President Datuk Aishah Ahmad.
2009’s figure may be lower than 2008’s 548,115 units, but MAA is predicting that 2010 will record the second-highest-ever figure of 550,000 units, just short of the record 552,316 units set in 2005. The economic recovery which started in the fourth quarter of 2009 is expected to last through the whole of 2010, as could be seen from the 5 percent GDP growth targeted by the government.
MAA did however point out that any increase in interest rate would significantly affect auto sales. The petrol subsidy scheme, which proposed removing fuel subsidies for cars with bigger engines, was also cited as a factor that could affect sales, although MAA expects any impact to be short-term in nature.
Tags: Business • Malaysia • Others
