BNM move likely to have small impact on car sales
KUALA LUMPUR: The 25 basis point increase in the Overnight Policy Rate (OPR) is unlikely to affect total i ndustry volume (TIV) for the automotive industry this year.
The Malaysian Automotive Association (MAA) has forecast that total TIV will grow 2.3 per cent.
This is in line with the nation’s higher projected economic growth of five to 5.5 per cent.
MAA president Datuk Aishah Ahmad said the increase in the OPR would have minimal impact on car sales.
“This is provided industry players can get their l oans approved. As far as this year’s TIV is concerned, we have alr e a d y f a ctored in the 25 points increase,” she said.
Malaysia Automotive Institute chief executive officer Datuk Madani Sahari said while there might be some impact on hire purchases for consumers on the border line of hire-purchase eligibility, the 0.25 per cent increase should not significantly affect car sales.
“It is important to note that the OPR decision was made for longterm stability of the economy and is timely as the economy demonstrates a strong rebound momentum from the uncertainty seen in the last two to three years. The revision is also designed to address the bigger issue of high household debts among Malaysians and creditworthiness among borrowers,” he said.
Madani said it was important to consider other factors that positively affected hire-purchase approvals such as used-car trade value and increased purchasing power across all income brackets.
“Most importantly, both the government and industry players recognise the importance of maintaining a well-balanced credit ecosystem for a sustainable economy,” he added.