The Kelana Jaya MP was commenting on Transport Minister Liow Tiong Lai’s recent statement that Putrajaya was studying a new policy on the lifespan of vehicles in the country.
Liow had said the study included a proposal for incentives, including rebates and cash, for owners to change old vehicles.
But Wong told FMT that the decision to change a car was a personal financial decision, and that there was no reason for government intervention.
This, he said, was especially so as the prices of cars were high and there was no fuel subsidy.
“I just don’t understand why the transport minister is becoming a car salesman. His job is to provide better public transport, not help sell more cars.”
Elaborating on the issue of excise duties which artificially push up the prices of cars, Wong said they should be reduced, if not fully abolished.
“This is not a car sales issue, but a matter about the high level of household debt and increasing disposable income.”
Citing the example of Proton, which is now owned 49% by Geely, Wong said existing excise duties put in place to give Proton an edge over imported cars should be reduced by 49%.
Malaysian car manufacturers benefit from the government’s protection through excise duties on imported vehicles of between 60% and 105%, which makes local cars inexpensive by comparison.
“Malaysians earn one third of what Australians earn, and pay two to three times to buy the same cars.
“Cars are also an underused investment, for instance we only drive our cars for one hour in a day, just one hour in a 24 hour cycle.”
However, he said because public transport was so bad, most people had no choice but to pay for overpriced cars.
He added that a policy to force a mandatory change of cars, as well as incentives to do so, would only see the government throwing away more public money into “a money pit”.
“We must prioritise public transport, and then as a secondary measure, lower the costs of cars by eliminating, in stages, excise duties.”
In countries such as Japan and Singapore, there are tax incentives and rebates to encourage the use of new cars, though both countries are known for their efficient public transportation systems.
Universiti Tun Abdul Razak economist Barjoyai Bardai, meanwhile, said cash incentives or rebates for a new car were not in line with prudent investment principles as cars were a depreciating asset.
Barjoyai said nowadays it was more prudent to opt for “driving time” rather than a car, with options of ride sharing services or car sharing services, which let users rent cars for a few hours or days.
“The idea is to avoid a depleting investment. Now, we are paying hundreds in loan repayments per month for a car, but maybe only use the car a few hours a day.”
Barjoyai said consumers needed to change their mindset and realise that owning a car was a liability now that there were many alternatives.
However, he said the concept of phasing out older cars for safety was okay, though only if cars became more affordable. But, he added, those in the lower income group or rural areas should be exempted.
The Consumers Association of Penang, meanwhile, told FMT that a policy which would see people having to change cars after a certain period would only add to household debt.
“What if you have to change cars every five years, many consumers already have car loans up to nine years,” CAP president SM Mohd Idris said.
He added that the focus should be on increasing public transport ridership rather than just encouraging private transport.
In 2013, Malaysian Institute of Road Safety Research Malaysia (Miros) director-general Dr Wong Shaw Voon said cars which were more than 12 years old were likely to have less effective safety features to protect their occupants from death and injury in the event of a crash.
He said, however, this risk could be reduced if the car was carefully used and properly maintained.
According to a 2013 Malay Mail report, the Malaysian Automotive Institute estimated that there were more than 5 million vehicles that were over 10 years old.