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No more cap on fuel prices as subsidies will not be provided if global oil prices rise

UPDATE AT 8:45 PM/June 10:
According to Bernama, quoting the Domestic Trade & Consumer Affairs Minister,
the government has not removed the ceiling prices.

When the Pakatan Harapan government was managing the country’s affairs, one of the things which it did for consumers was to cap the prices of RON95 petrol and diesel. Though the country didn’t have a lot of money and had massive debts due to the 1MDB scandal, the government was still willing to provide subsidies to maintain fuel prices when needed. The prior government had removed subsidies and allowed the Automatic Pricing Mechanism to determine weekly retail prices at the pumps.

The subsidies, though discouraged by economists because they can distort the market, helped to provide a degree of stability for businesses. Being able to make projections of future transport costs without worrying about fluctuations in fuel prices made planning less of a headache. It eased the burden on consumers already facing challenges of rising cost of living.

Change approved in April 2020
Now, under the present government, things have changed and they were done with no announcement (though through proper gazetting procedures). Apparently, the change was approved in April this year but we didn’t notice it because fuel prices had fallen very low (and people were more concerned about the MCO). It was gazetted at the beginning of this month.

There will no longer be any cap on RON95 petrol at RM2.08 a litre, nor on diesel at RM2.18 a litre. If global oil prices and other factors result in the Automatic Pricing Mechanism setting prices above those levels, they will be followed as there will be no subsidies used to offset the additional cost.

Oil refinery — *With the global pandemic forcing lockdowns that reduced demand for oil, prices have been sliding down since the beginning of the year.*

No subsidies needed since February
For many weeks since February, no subsidies have been necessary as the prices kept going downwards. The last time subsidies were needed was the first week of February when the government pumped in RM10.43 million.

In early March, the prices of RON95 petrol and diesel dropped below RM2.00 and kept going down to as low RM1.25 and RM1.40 for petrol and diesel, respectively. However, by the end of May, the prices started to slowly move up again, with this week’s levels being RM1.48 and RM1.73, respectively. Still some way to go before reaching the previous capped levels but the trend seems to be upwards and oil output and demand begin to be more in sync.

All-new Toyota RAV4 can be booked now, ahead of online launch on June 18

The Toyota RAV4, which was the bestselling SUV in 2019 and ‘Car of the Year’ in Japan, will soon be in showrooms in Malaysia. Following a teaser campaign to let the Malaysian market know of its launch to take place online on June 18 at 10 am, UMW Toyota Motor (UMWT) is now accepting orders from ‘early bird’ customers.

Two variants imported from Japan
Two variants will be available, with 2.5-litre and 2.0-litre petrol engines, and pricing is RM223,880 and RM203,880, respectively. However, these prices still include Sales Tax which will be exempted from June 15 until the end of the year as part of the government’s economic recovery initiative for the auto industry.

Being a completely built-up (CBU) import from Japan, 50% of the 10% Sales Tax can be exempted which will therefore be 5%. UMWT estimates that after the tax deduction, the price will be RM215,700 for the RAV4 2.5 and RM196,500 for the 2.0-litre variant (without insurance premium included).

This is the fifth generation of the model which created a new market segment when it was first launched in the mid-1990s. Cumulative figures for the SUV passed 10 million at the end of February this year.

TNGA and Dynamic Force Engine
The new RAV4 sits on Toyota’s New Global Architecture (TNGA) platform like many of the latest models. It also comes with a Dynamic Force Engine which is the latest Toyota engine family and features advanced technology for high efficiency and performance.

Besides moving towards a more premium image, the RAV4 also comes with Toyota Safety Sense, a suite of safety systems which help the driver to avoid accidents and make motoring safer. These include Pre-Collision System, Lane Departure Alert with Steering Assist, Lane Tracing Assist, and Dynamic Radar Cruise Control for All Speeds as well as Automatic High Beam.

Customers can expect a comprehensive list of convenience features which will include a Kick Sensor Powered Back Door. This feature enables opening of the rear door by just positioning one foot under the rear bumper and the door will automatically open.

More information on the new Toyota RAV4 can also be found at toyota.com.my.

Click here for other news and articles about Toyota.

‘Service Relief Promotion’ for Ford owners from Sime Darby Auto ConneXion

Sime Darby Auto ConneXion (SDAC) has started a ‘Service Relief Promotion’ with savings on Ford vehicle service charges and parts. The promotion will run from today (June 10) until July 30, 2020.

During this promotion period, owners will enjoy more savings when they send their vehicles for servicing at authorised Ford service centres. Additionally, for peace of mind, a free 27-point vehicle inspection will be conducted by Ford-certified technicians to ensure their vehicles are in tip-top condition. This is particularly important for vehicles that may have been idle for the long period of the MCO.

“We always aim to deliver value-added benefits and services to our customers. People still need to go about their day-to-day activities in this time of uncertainties and we hope these savings will help lighten their load,” said Syed Ahmad Muzri Syed Faiz, MD of Sime Darby Auto ConneXion.

Up to 20% savings
Up to 20% Savings are offered on selected parts, all of which are genuine and original items approved by Ford, assuring quality and reliability. There’s also a 20% discount on brake and timing belt packages, up to 20% discount on lubricant packages, on top of the 10% discount on labour for the said packages (terms and conditions apply).

Commenting on the promotion, Jeffrey Gan, MD for Retail and Distribution, Malaysia, Sime Darby Motors, said: “We welcome customers who wish to come in-person to any of the Ford showrooms located nationwide, including Ford’s latest flagship showroom at Sime Darby Motors City, Ara Damansara. Ford’s latest flagship is the largest in Malaysia and is built on the 10.1-acre automotive complex of Sime Darby Motors City which comprise the latest Ford Signature brand retail design.”

“We would like to assure our customers that we have taken the necessary precautions to ensure the health and safety of our staff and visitors which includes, practicing social distancing. At certain showrooms, we require all visitors to perform temperatures checks upon entering the premise, in addition to supplying hand sanitiser dispensers located in the showrooms.” he added.

Ford Ranger — *If you missed a required service because of the MCO restriction, your warranty will not be affected but you must schedule the service by June 30, 2020.*

Safeguarding vehicle warranty
During the Movement Control Order period, customers may have been prevented from making a warranty service appointment before their warranties reached the expiry date or mileage limit. However, SDAC understands this was unavoidable and the warranty will not expire yet if they schedule their warranty service appointment before June 30, 2020.

Appointment needed for servicing
Owners are required to book an appointment prior if they wish to have their vehicle serviced. This is to ensure that there is no over-crowding at the service centres which will prevent social distancing. The Standard Operating Procedures specified by the authorities require social distancing and various measures to ensure hygienic conditions for the safety of customers and staff. These include the use of hand sanitizers, body temperature checks and facemasks.

Booking a service appointment can be done online at the SDAC-Ford website (www.sdacford.com.my/book-a-service-form) or by calling an authorised Ford Service Centre. The list of operational service centres can be found at this link: www.sdacford.com.my/owner/service-maintenance/operation-hours. Information and assistance can also be obtained by calling the Customer Care Hotline at 1300 38 3181.

The New Ford Ranger FX4

Cash rebates for all Perodua models from today, ahead of Sales tax exemption

In a recent announcement, the government will exempt the 10% Sales Tax on new vehicle purchases. The exemption, to be effective from June 15, 2020, will be 100% of the tax value for locally-assembled models and 50% for imported models (CBU or completely built-up). This is one of the initiatives by the government under the to help the auto industry regain sales momentum.

However, before June 15, Perodua will reduce prices (on-the-road excluding insurance) of all its five models by between 3% and 6% via cash rebates. This offer will be only until June 14, after which the new prices throughout the tax reduction period will be incorporated.

“Despite the tax reduction only becoming effective 15 June 2020, Perodua will offer cash rebates between 3% and 6% for the purchase of our vehicles beginning today [Wednesday, June 10],” Perodua President & Chief Executive Officer, Dato’ Zainal Abidin Ahmad said.

“We want everyone to take this opportunity to own a Perodua without worrying about being left out. Please visit any Perodua sales outlet and speak to our authorised sales advisors for the total cash rebate amounts and the full price list that will be effective June 15,” he added.

Perodua Axia — *Cash rebates to lower purchase cost of the popular Axia.*

“Perodua is in full support of the government’s move to fully exempt sales tax for the purchase of CKD cars until the end of the year to shore up the domestic economy,” said Dato’ Zainal. “As Malaysia’s biggest carmaker by volume, we reiterate our commitment to the government to contribute wherever and whenever we can to ensure the industry can get through this difficult time.”

“The Malaysian public are understandably spending more cautiously due to COVID-19 and the Movement Control Order, although personal vehicles are still very much needed in these trying times,” he said. “This move to fully exempt CKD cars from sales tax is a confidence boost for the automotive industry – not just for car buyers but the entire ecosystem of manufacturers, suppliers and dealers. Along with low financing rates at this difficult time, we are cautiously optimistic that this will spur new car sales.”

With the industry shutdown for the very long period during the MCO, Perodua sold 52,920 vehicles in the first five months of this year, giving it a 41% market share against an estimated year-to-date total industry volume of 129,401 units.

To locate a Perodua showroom for more information, visit www.perodua.com.my.

Click here for other news and articles about Perodua.

The other side of the BRABUS business – armoured SUVs

BRABUS is well known for its high-performance upgrades to Mercedes-Benz models and while that forms the bulk of its business, the company can also do special protection vehicles for customers who need protection from more than just accidents.

The company produces an innovative variant of the current Mercedes-Benz G-Class armoured in accordance with the VR6 Plus ERV standard, known as the INVICTO. The all-terrain vehicle comes in three different versions: PURE, LUXURY and MISSION.

In order to provide the occupants with maximum protection against small arms fire and explosives, the engineers from BRABUS developed the ‘INVICTO Shelter Cell’, a self-contained, self-supporting and bolted-down protective cell. In addition, there are further protective elements that are in part produced using a special 3D printing process and, of course, all-around extremely tough bulletproof glass.

After extensive ballistics and explosives testing, the protection levels of the INVICTO are confirmed to meet high industry standards. The armoured SUV can resist not only 7.62 x 39 calibre rounds (used in automatic weapons such as the AK-47), but also hand grenades and 12.5-kg explosive charges.

However, the high level of protection remains largely unseen from the outside. It’s all ‘under the skin’ with high-tech materials used. A common feature of all three INVICTO models is the innovative special protection package developed specifically for the body of the G-Class. The doors and the hatch are fitted with newly developed protective elements, including extremely tough bulletproof glass.

In order to fit them into the body of the G-Class, the engineers developed an innovative structure for the upper windshield frame. It is the first time anywhere in the world that protective elements are used which are made in a 3D printer using additive manufacturing processes.“ .

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Unlike vehicles where the armour is retrofitted, the individual elements of the protection system by BRABUS is not welded separately into the bodyshell of the vehicle. Everything is bolted-down as a unit. To this end, the company manufactures precise-fit, hot-rolled steel armour plates and additional protective elements made from materials such as carefully selected fabric and fibre structures as well as from ceramic and metal composite materials.

Among the many special constructive features of the INVICTO Shelter Cell is the fact that there is no narrowing of the door openings whatsoever. Getting in and out of the vehicle comfortably is crucial for many owners of a G-Class. In addition, the protective cell has a zero-gap design. This means that the individual components of the armour are installed without any gaps between them. This is of elementary importance for providing maximum security under small arms fire or an explosive attack.

But active safety is not overlooked either and the engineers revise suspension settings and also components to match the increased weight as well as maintain safe handling. There’s also a high-performance braking system and 20-inch INVICTO wheels with special run-flat tyres.

In addition, the vehicle frame was reinforced in the area of the side members and the strut towers were reinforced as well. Despite the outstanding level of protection added, the weight increase is only about 1,000 kgs, which is relatively little in comparison.

The INVICTO can be ordered with various petrol engines available for the current G-Class models. The cost of the protection packages start at 354,600 euros, which is equivalent to about RM1.7 million. If you are someone who needs such protection, chances are the cost will not be an issue!

Temporary closure of ramp at Kajang Interchange of N-S Expressway

PLUS Malaysia Berhad, the highway concessionaires, is notifying users of the North-South Expressway that the Bangi-Kajang ramp at the Kajang Interchange in Selangor will be temporarily closed to all vehicles. The closure will be from tomorrow (June 10) until July 2, 2020, from 9:30 pm to 5:00 am.

The reason for the closure is also to enable safer tree-cutting maintenance works using specialised machinery at the area.

As such, highway users travelling from the South/Bangi heading to Kajang are advised to utilize alternative routes by exiting the highway via Bangi Toll Plaza or UPM Toll Plaza during the period. They should follow instructions and signs put up by PLUS.