It’s Time For The Old To Expire
No, we're not talking about senicide. Well, not of humans, anyway. Just vehicles. There are several issues that Malaysia...
https://automology.blogspot.com/2013/11/its-time-for-old-to-expire.html
No, we're not talking about senicide. Well, not of humans, anyway. Just vehicles.
There
are several issues that Malaysians are eagerly anticipating in the
upcoming revision of the National Automotive Policy, due to be announced
by the end of the year: the first is regarding tax exemption for
hybrid, electric and any other energy efficient vehicles; the second is
whether there will be lowering of excise duties imposed on foreign car
brands (highly unlikely, but Malaysians can always hope) and, lastly, the
issue that has been circulating on news and social media recently, the
reintroduction of the end-of-life vehicle (ELV) policy.
Malaysia’s
Ministry of International Trade and Industry (MITI) had tried to
introduce the ELV back in 2009, but the idea was scrapped amidst fervent
protests. It seems like the government might give it another go this
year. The earlier ELV proposal mandated that cars that have been in
service for 10 to 15 years would need to undergo regular mandatory
checks for road worthiness. For vehicles older than 15 years, well,
overnight they transform into nothing more than salvage material. Then,
in February this year, the Malaysia Automotive Institute (MAI) suggested
that the lifespan should be a mere 10 years (we can imagine Malaysians
gasping in horror).
Recently,
on 15 November, the Director General of the Malaysian Institute of Road
Safety Research (MIROS), Professor Dr Wong Shaw Voon, made the
statement that cars are designed to have a lifespan of up to 12 years
maximum. “There is a higher risk of death in an accident because such
cars could be faulty without the driver being aware of it,” he said. So,
at the moment, 12 is the popular number that is being ardently debated.
Of course, he never said that cars aged 12 and above had to be
immediately scrapped, only that such vehicles involved in accidents are
more likely to be fatal. A simple solution would be that if your car is
old, just drive carefully, wouldn’t it? Angry tweets and Facebook
updates from netizens seem to agree, as they pointed out that traffic
accidents are due to bad driving, not bad cars.
So,
let’s assume that 12 years is the limit to continue our exploration of
the subject. There are presently 22 million vehicles on the roads of
Malaysia, of which 5 million (23%) have been in service for 10 years or
more and will be affected should (or when?) the policy takes affect in the
next few years.
In
October 2013, The Star daily reported that Malaysia’s household debt to
GDP ratio has reached an alarming high of 83% as of March 2013 (for
comparison to its neighbours: Indonesia, 15.8%; Singapore, 67%).
Passenger car loans took the second largest chunk of the debt pie, after
home loans, amounting to MYR145 billion. We have already written about the hefty prices of cars in Malaysia that necessitates citizens taking
lengthy car loans of up to 9 years. So, 3 years after paying off their
car loans, the thing that Malaysians have spent a sizeable portion of
their incomes on are suddenly forcibly decommissioned, and they would
have to enter into another 9-year debt all over again to buy a new car.
We’re not bankers, economists nor mathematicians, but we assume that the country's
household debt will be augmented even more.
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The Acting Transport Minister,
Datuk Seri Hishammuddin Hussein, had initially confirmed, albeit
vaguely, that some sort of ELV policy will be implemented in the near
future although he did not furnish any further details, except that
more studies needed to be conducted and steps will be put in place to
address any financial predicaments that citizens would face. On 19
November, the Malaysian Insider reported him as saying, "I have to find a
mechanism so that the people won't be unduly affected or burdened by the
cost of living…We may have to go ahead with what has been proposed but
there might be mechanisms that won't create unnecessary burden.”
Just
a few days later, however, his deputy minister, Datuk Abdul Aziz
Kaprawi, dismissed the idea in Parliament, saying, “We have no plans to
impose a lifespan on cars for disposal purposes and we do not want to
burden the public.” Perhaps these 2 ministers should start speaking to
each other before making anymore public statements.
Okay,
so let’s see this in a positive light. Just across the causeway in
Singapore, the CoE spans only 10 years, after which the car has to be
scrapped or the owner has to pay for the CoE all over again for a 5 to
10-year extension. Knowing this, Malaysians should feel better about the ELV, simply because misery loves company.
Also,
scrapping old vehicles will, besides allegedly reduce traffic fatalities, will certainly reduce greenhouse gasses emissions, car ownerships
and traffic congestions. This leads to the question of alternative
mobility options for Malaysians. The Mass Rapid Transit
project connecting the Greater Kuala Lumpur is due to be completed in
2016. Surveys indicate that public satisfaction towards the bus service
provided by RapidKL (a government owned company formed to manage the
country’s public transportation system) has improved, including one set
of statistics showing a passenger satisfaction rate of 75.4% in May 2013 compared
to 65.5% in 2011. Even taxi bookings can now be conducted and monitored
via mobile apps.
Are
these enough and what else can be done so that the situation is
conducive for reduction of personal vehicles on the road? Maybe the
transport ministers should consider this question first and not put the
maybe yes, maybe no cart before the horse.
image: Wikipedia
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