Speaking to FMT, he said cars represented one of the biggest expenses for Malaysians, eating up a large chunk of the average worker’s salary.

“By pricing cars highly, we make people increase their debts,” he said. “Reducing the prices will help reduce bankruptcies and other financial issues.”

He added that it did not make sense that Malaysians were paying exorbitant prices for cars being sold at cheaper prices overseas.

He was commenting on an FMT report on calls to reduce the import and excise duties which push up car prices.

Foo said the three highest expenses for the typical Malaysian were his house, car and education.

“I always tell my clients that if they need a car, then buy the cheapest and most reliable car they can. But even entry-level cars are very expensive and second-hand cars may exact long-term costs for maintenance and spare parts.”

He said public transport was not a viable option in many parts of the country, especially outside big cities.

According to the Insolvency Department’s website, car loans were the second biggest contributor to bankruptcies in Malaysia between 2015 and 2019. More than 18,000 people went bankrupt because they couldn’t service their loans.

Malaysia Consumer Movement president Darshan Singh Dhillon said car prices were not commensurate with income levels in the country.

“This issue must be revisited,” he told FMT. “The protectionism in the automotive industry needs to be heavily relaxed so that consumers can get the best deal.

“By now, local manufacturers should be ready and able to compete for the benefit of consumers.”

However, Penang Consumer Association president Mohideen Abdul Kader said there was a need to protect the local automotive industry, noting that it provided thousands of jobs, promoted the use of local materials and had many related industries.

“Duties on imported cars should be continued,” he said. “One lesson we should learn from Covid-19 is to reduce our dependence on imported goods and to plan to be self-reliant.”

He said revenues from duties on imported cars should be channelled towards the provision of efficient and affordable public transport.

He urged the government to treat the provision of public transport as a major concern and to encourage cycling and walking in order to reduce the number of private cars on the road.

“This way, we will reduce our carbon footprint and fulfil our international commitments in mitigating the impact of global warming,” he said.

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