MACC probing tyre industry for price manipulation

MACC probing tyre industry for price manipulation

The government reportedly loses up to RM70 million a year due to unpaid import duties on tyres.

macc
MACC’s special operations division senior director Zamri Zainul Abidin confirmed that the anti-graft agency is examining the tyre industry for issues such as price manipulation and revenue leakage. (Bernama pic)
PETALING JAYA:
The Malaysian Anti-Corruption Commission  is looking into allegations of price manipulation and other issues in the country’s tyre industry.

A source told Berita Harian the matters under scrutiny include the import of tyres, allegedly up to 300 containers annually, which might be unsafe or unsuitable for use in Malaysia.

The Malay daily also reported that the government was estimated to be losing up to RM70 million a year due to the import of around 100,000 tyres used by heavy vehicles.

The source said the losses were caused by unpaid import duties on tyres brought in from non-Asean countries, which should have been charged a 40% duty plus a 10% sales and service tax.

“MACC is reviewing this issue and will take further action, including opening an investigation paper if necessary,” said the source.

MACC’s special operations division senior director Zamri Zainul Abidin confirmed the matter but declined to elaborate.

Burst and detached tyres are recognised factors in Malaysian road accidents, causing loss of vehicle control, skidding, and collisions, resulting in injuries and fatalities.

Jamil Manan Supri, founder and adviser of the Road Safety and Motoring Safety Experts Association, previously said that tyre usage was one of the main causes of road accidents in Malaysia, particularly involving heavy vehicles.

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