"Uncertainties", a Bit Too Many

I

For some unclear reasons, one irresponsible person has posted one (out of hundreds) slide showing the Perodua's car OTR price simulation with and without SST. Nothing extraordinary about the slide except that it carried Perodua logo. The simulation shows that the SST will make the OTR price higher compared to with GST. It went viral and within less than 2 days, the posting was shared by more than 900.

What was leaked, seems as Perodua has officially declared a price increase when SST is to be reintroduced from 1^st September onwards, triggering members of the Media to start asking for comments and authorities were asking for the “basis”. The truth is, IT WAS NOT.

I take full responsibility and ownership of the slide. It was one of the many simulations that we have been working on to chart our business direction moving forward. There is nothing wrong about that. But, to assume that this is our final declaration on our pricing strategy during SST re-introduction, is totally wrong and misleading. Perodua is still waiting for official details from the government and will only make the official announcement at an appropriate timing. It is more than just about the SST. It is about company’s strategy enduring the market challenges ahead.

II

So happened, on the same day, there were many news reports about how the OEMs is reacting to the re-introduction of SST. The Malaysian Automotive Association (MAA) during its Press Conference shared that “there are concerns over a price hike due to SST implementation” and lowering its projection for auto sales to 585,000 units from 590,000 units this year. Proton, in a separate statement also expect prices of its cars “may go up with SST’s return”. Bernaz Auto Bhd, which is the distributor for Mazda in Malaysia went even further by declaring that they "will absorb SST if cars booked before September 1 but delivered after that".

Everybody are talking about possible OTR price increase as a result of SST. In the absent of any announcement on the new formula or structure on how the SST will be implemented, the OEMs can only simulate based on past structure of SST, and that is how (perceive) the price will be effected. Higher OTR price!!!

III

Then, there was this news too; the 2^nd National Car??

For me, I am sure government will do their best in taking care the interest of the people. It is not easy to balance between ensuring income for government and not burdening the people at large, but there are ways, for sure. However, amid the confusion, the earlier this being clarify is the better. Too much of uncertainties is not healthy.