"Astronaut, Cosmonaut, Canonaut? (Can or Not)"

Time for some economics.

Fact of the day: Do you know that Malaysian cars happen to be the most expensive in the world?

Well know you do.

Imagine this:

American ppl pay US 1.50 for a cup of coffee. For example...

Us Malaysian also pay RM 1.50 for a cup of coffee.

This shows that regardless the exchange rate of cash, our cost of living is around or at least roughly the same. Our standard of living are of equal.


NOW, picture this...

In US, BMW's are sold for just at least US 30,000 - 50,000.

In Malaysia, BMW's are sold for RM 300,000 - 500,000.


Holy geez, thats like 1000% different. Now, now, don't tell me about the exchange rates and all. Wait, even if it is, it's still kinda dirt cheap right?

US 30,000-50,000 x 4 (actually 3.XX rounded up to 4)
= RM 120,000-200,000

Wow, it's still kinda affordable at our standards.
Now, now..remember the first statement?

American ppl pay US 1.50 for a cup of coffee. For example...

Us Malaysian also pay RM 1.50 for a cup of coffee.

Ignoring the exchange rate and comparing our standard of living, i hope you see why cars are outrageously expensive in Malaysia.

Do you know why?






Proton. Perodua.

Malaysian made cars can't compete with German/Japanese automobile engineering technology.

Well, duh!

So in order to give in some form of competition, Malaysian government have decided.....to increase tariffs (tax on imports) like MAD. That's why you see 6-7 digit number price tags on BMW's or wtv German cars u see in the Malaysian market.

Tariff protection? Hmm....

Tariff protections are normally implemented to give infant industries a fair shot at the cruel real world of economy.

BUT 25 YEARS??

MORONS.

25 years of continued govt. protection. Now that's kinda long man. About time these ppl grew up.

Notice something?

How the generation of Proton/Perodua cars match up?

Especially the Proton Saga/Wira SERIES??

Man, they even have several version of those crappy tin cans.
As each new car gets into the market, their differences are minor, not really much of a change.

That's why Proton/Perodua suck.

Proton was found in the 1980's, and was suppose to symbolise Malaysia's rapid industrialisation and aspirations to first-world status. Dr. Mahathir back then had such high hopes for Proton.

Guess what. Hatinya and idamannya berkecai. Rupa-rupanya Proton akhirnya SUCK sekali. Adui...

Reacting to this, even several board members of Proton decided to threaten to resign. People gave up, but Dr.Mahathir didn't gave in.

In so, Dr.Mahathir protected his baby industry (Proton is allowed to be called an infant industry at that time of the year) with import duties of 30-400%. Wow. This definitely had to keep Proton alive. Well, it did. At least alive. But NOT competitive. The huge imposed tariffs allowed Proton to survive in the long run. But during the long term, Proton did not very well improve. Did not innovate. Did not get creative.

I am of the persuasion that competition is good for all companies. My base reference is in watching babies grow. Beyond infant industry protection status, which should have ended 25 years ago, Proton should have been exposed to competition on an increasing scale.

Today, I believe that such an environment would have yielded a class company capable of global sales. Look at the Koreans, whose own auto industry started in earnest 10 years after Proton. Now, the production is on such a scale that the cost per car is so low that when sold to other countries, they cry "Foul! The Koreans must be dumping! Call the WTO!"

Lamers.

In addition to Malaysians staying under protection mad tariffs, these even more have the multiplier effect on Malaysian car dealers attitude.

Malaysian car dealers are never afraid of losing their customers.

Why?

The price of Proton is far cheaper than foreign cars. For that we do not have choice if we don't have money to afford German technology.

And the fact that the government is spoon feeding too much on local car makers. Giving taxes lots of names just to make Proton cheaper.

Then Proton will never think of Quality, so as Customer Service Quality, cos they are the big winner on the price. They will never grow and compete with the foreigners. They will always SUCK if this continues.

They have guaranteed markets locally with the helps of "EXCISE" from the government. They are the big winners locally. And also big loser globally. They don't understand what globalization is.

Proton talk big - overpromise and underdeliver.

Hopes that this little story from a little citizen of Malaysia, goes out as an advise to the public. If you have enough money, don't buy local made cars.

Drive them out. It's good for the country's name. We are better off increasing our country's GDP by producing Milo tin cans and Maggi Mee's.

Imagine Malaysia without Proton/Perodua. There would be no use of imposing tariffs.

As you see Proton Saga's/Wira's, you see Vios/Civic/City's.
As you see Vios/Civic/City's now, you'll see BMW/Mercedes/Lexus.
As often as you see BMW/Mercedes/Lexus, you'll see Bentley/Rolls Royce/Maybach.

Yes, our country could be filled with all these nice cars.


Russia - Cosmonaut
America - Astronaut
Malaysia - CANONAUT (Can or Not)



-tsencai-

Out.