Image source: malaysianews.worldtimes.news
The Malaysian Government has just announced the SPV 2030 last weekend. SPV 2030 stands for Shared Prosperity Vision, which simply means to rejuvenate economic growth in times of uncertainty. This vision is in line with Tun Mahathir’s objectives to turn the country into a developed country by next year; it was first envisioned in the 90s by the current Prime Minister himself.
The SPV 2030 comprises of three main development goals: restructuring the economy towards a progressive; knowledge-based and inclusive community; addressing inequalities; and building a stronger country. We won’t go in-depth into the policies as this vision is still in its infancy.
In order to successfully implement SPV 2030, the experts have ironed out current weaknesses in the current policies, either by current or past local Government. The key weakness factors are low adoption of high technology, uneven distribution of economic development, income/wage inequality for workers, rich-poor gap widening, urban-rural division and a lopsided development on the west coast rather than the country as a whole.
According to Government sources, the vision aims to provide a turbo charge needed to spur a sustainable economic growth. The vision applies to high-impact industries such as aerospace, automotive, digital economy and high-tech farming. As the Automotive industry is one of the major economic contributors in the country, the new policies should they successfully be implemented could be a probable positive sentiment for the auto industry in the not-too-distant future.
Abolish hefty tax structure to make the automotive industry more competitive
Unless hefty tax structure on foreign makes and import cars is taken care of, the progressive growth of the automotive industry won't come to fruition. Take for example, Malaysia's neighboring countries up North or down South.
Nowadays, local buyers are advised to choose their car purchases wisely and not only consider cars with low brand and price propositions. Buying a new car is an important life decision for anybody and should be taken very seriously. When choosing a new ride, do consider these factors other than the price: Global standards like advance safety features, driving dynamics, fuel consumption/emissions and contemporarily-designed cars are diligently followed by most car companies with global expectations. They are meant for peace-of-mind and best ownership experience.
Safety is paramount and most car manufacturers, with the exception of local brands, follow global standards diligently. Local makes however adhere to the Asean NCAP rules as a bare minimum safety requirement. Driving dynamics is practically an acquired taste, most drivers start out with a car to get from point A to B. They then upgrade to a better ride as their income increase. Upon upgrade to either a Japanese or Continental make, most drivers come to realize driving dynamics. Simply put, a car with good driving dynamics offer driving fun and keep you stuck on the road.
Next topic is fuel consumption and emissions, a common subject for the locals. For city driving, fuel consumption and emissions, to some degree, play a major role on a prospective buyer’s decision to buy a car. However, those who are on mid-income level and above would likely choose to favor a more dynamic drive than settle for an economical or fuel saving car. On a similar perspective, does the design of the car matters to local buyers, again it depends on their wallets. Most people choose to give up style and taste, in favor of practicality.
As Malaysia draws near to a developed country status, does the new SPV 2030 seem a progressive approach to assist the country in achieving its true objectives or it is merely a push forward timeline of the original vision 2020?