MBM Resources expect car, lorry sales to pick up in next 3 months

KUALA LUMPUR: MBM Resources Bhd sees car and lorry sales picking up in the next three months.

This is because the Goods and Services Tax (GST) will be zerorated from next month while the Sales and Services Tax will only be implemented in the next two to three months.

Chairman Datuk Abdul Rahim Abdul Halim said buyers would enjoy savings within this period.

“We expect to see encouraging car and lorry sales in the next two or three months,” he said after the shareholders meeting, here, yesterday.

Also present were president and chief executive officer Nor Hadi Daud and group chief financial officer Annie Chin Tze Fui.

MBM Resources is the dealer for Perusahaan Otomobil Kedua Sdn Bhd (Perodua), Mitsubishi, Volkswagen, Volvo, Daihatsu and Hino brands. It also deals with vehicle components such as seat belts and airbags for Proton Holdings Bhd and Perodua.

To a question, Rahim said MBM Resources was not in a position to comment on UMW Holdings Bhd’s takeover offer as it was in the hands of parent MedBumikar Mara Sdn Bhd.

MBM Resources’ net profit for first quarter ended March jumped 68.9 per cent to RM32.82 million from RM19.43 million a year ago, thanks to improved sales of vehicles and car components.

Rahim said the prospects for the rest of the year looked good as MBM Resources had made all necessary impairments last year.

“In the first three months, we sold nine per cent more vehicles compared with the first quarter of last year. We are hopeful that car and lorry sales will remain encouraging for the rest of the year,” he said.