Change ahead

Ake Lertsirirungsun

11 May 2018

Malaysian Election

With the recent election of Mahathir Mohamad as the new Prime Minister of Malaysia, some impact for the automotive industry is to be expected. The immediate impact would be through changes in policy that will alter consumer behavior.

Buyers are likely to hold off on purchases until decisions on the abolition of GST promised by Mahathir are unveiled, something that is likely to lead to a negative impact on Light Vehicle Sales in the first half of 2018.

In addition, the country’s revamped National Automotive Policy was previously scheduled for a mid-2018 announcement but, with a new government coming into power, this could now be delayed until the end of the year. While we believe the Proton-Geely partnership will remain intact, new conditions may apply now that Mahathir is back in power, especially if Malaysia’s relationship with China is to be re-examined.