Dato’ Syed Mohamad Aidid
President of MASAAM
The motorcycle industry landscape has been adapting to changes in the economic environment and thus been dynamically transformed.
Technological advances in production methods and innovative designs have led to improvements in standards for product and rider safety.
I would like to reflect on the performance of the motorcycle industry last year where the total retail volume fell by 11 percent to 465,000 units compared with the corresponding year 2014. Factors leading to this decline in retail volume for the second consecutive year include tax reforms with the implementation of GST 6% to replace the Sales Tax of 10% in April last year which impacted consumer sentiments and dampened business confidence. The weakened Ringgit against major currencies also adversely affected motorcycle manufacturers, where majority are importers and low crude oil and commodity prices had negatively affected revenue and growth.
As we move into the tail end of February 2016, there are deepening concerns over the global economic environment that remains uncertain and the trailing domestic economy, but let us ponder over the numerous challenges facing the motorcycle industry.
First, is the importance of business sustainability for MASAAM members, of which 95 percent of the total industry volume is accounted for by its members. Then there is the high household debts among the low and middle income group, the main riding target group and coupled with stringent credit control on financing of motorcycles, may affect purchase consideration. Moreover, recent inflation has led to higher cost of living and impaired spending power.
Positively, manufacturers are likely to introduce exciting new models this year to entice the riding population and enthusiast alike, thus generating demand and growth potentials. The compliance to UN Regulation standards will also pave the way for an open playing field and assist manufacturers to explore export opportunities.
I wish everybody success in your business in 2016.
The Ministry of Domestic Trade, Cooperatives and Consumerism (KPDNKK) held a meeting at its headquarters in Putrajaya on the 10th of August ,2015 to briefed stakeholders with regards to its
Hong Leong Yamaha Motor recently concluded its 17th Balik Kampung Road Safety Campaign 2015.This event from 4th till 11th July, was jointly organised with the Malaysia Motorcycle and Scooter Dealers