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GST, HVGT, could resurface as part of Budget 2025 alongside RON95 rationalisation, says RHB analyst. Are we ready?

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If you’ve relished waving goodbye to GST in 2018 and other contentious policies, be ready to see some of these resurface again as the government prepares to table their financial plans for next year and beyond as part of Budget 2025.


Economic hawks such as those in RHB Investment Bank Bhd, who are closely monitoring the upcoming Budget 2025, says that the government is expected to unveil crucial details regarding the rationalisation of RON95 petrol subsidies and the potential reintroduction of the Goods and Services Tax (GST), according to Bernama.

These measures are seen as part of the government's broader strategy to strengthen Malaysia's fiscal framework and economic stability. According to RHB IB analyst Alexander Chia, the Unity Government led by Prime Minister Datuk Seri Anwar Ibrahim has demonstrated resilience nearly two years after the 15th General Election.

Chia expressed confidence that the government would make significant strides in its efforts to reform subsidies, expand the tax base, and ultimately reduce the fiscal deficit, highlighting those two critical initiatives that remain undecided.

The government is scheduled to present Budget 2025 on October 18th. The reintroduction of GST, if it occurs, is likely to be integrated with the full implementation of e-invoicing, a move aimed at enhancing tax collection efficiency and transparency.

GST, first introduced in April 2015 at a rate of 6%, had a notable impact on various sectors, including the automotive industry, where it led to reduced prices for some vehicles. However, the tax was abolished in 2018 following the rise of the Pakatan Harapan government, which replaced it with the Sales and Service Tax (SST) at a rate of 10%.

The potential reintroduction of GST is seen as a crucial element of the government's strategy to broaden the tax base. Chia noted that this move, alongside the rationalisation of RON95 petrol subsidies, could significantly impact the nation's fiscal health by providing the necessary revenue to reduce the fiscal deficit.

RHB projects that the fiscal deficit target could be lowered to 3.5% of the country's Gross Domestic Product (GDP) in 2025, down from 4.3% in 2024. In addition to these key initiatives, Budget 2025 is expected to emphasise fiscal prudence and target support for low-income groups, an approach that aligns with the government's broader commitment to reforms.

There is also speculation that Budget 2025 might include the long-awaited High-Value Goods Tax (HVGT), although details remain scarce. Initially planned for implementation in May, with a threshold of RM200,000 for cars and a tax rate between 5% to 10%, the HVGT was postponed to allow the government to refine its policies and legal frameworks.

If introduced, this tax could represent another significant step in the government's efforts to bolster its revenue streams and manage the country's financial obligations more effectively.

As the government prepares to unveil Budget 2025, all eyes will be on the potential reforms and their implications for Malaysia's economic future. RHB IB remains cautiously optimistic, anticipating that these measures will pave the way for a more robust and resilient economy.

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2024 Omoda C9 (by Jaecoo) previewed - launch set for December from estimated RM185k

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The Omoda C9 (by Jaecoo) has been revealed for Malaysia ahead of its local launch set to take place some time this December. According to the brand, this D-segment coupe SUV will be priced from an approximate RM185,000 for the FWD variant and RM195k for the AWD and will be offered as a locally assembled model from launch. Registrations of interest have opened.


If you’re a little unclear about how this Omoda is suddenly a car sold by Jaecoo or why their second model launch likely not the J8 as initially announced, you’re not alone as both marques are collective sub-brands under the larger Chery umbrella. However, having the current and first Omoda 5 model sold at Chery showrooms and the C9 headed to ones labelled Jaecoo is mildly confusing at the very least.

The Omoda C9 is also known in its home market under Exceed, another sub-brand, as the Exeed Yaoguang, otherwise named the Exeed RX - perhaps a knowing nod to the fact that it does have passing resemblance to a certain Lexus.

As the C9 is considered an upmarket vehicle, Jaecoo will be handling the sales and after sales aspects of this model, including warranty and maintenance. Far as we know, the Omoda 5 and E5 will continue to be sold and serviced under Chery and their dealer network.

First revealed in February last year, the C9 measures 4,775 mm long, 1,920 mm wide, 1,671 mm tall and has a wheelbase spanning 2,800 mm, built on the M3X platform. With those dimensions, the C9 seems to bear a larger footprint than the Honda CR-V, or even 3-row SUVs such as the Proton X90 or Chery's own Tiggo 8 Pro.

Some exterior highlights include a wraparound-style headlight and taillight cluster, ’diamond matrix’ air intake grille and daytime running lights, 20-inch alloy wheels wearing 245/50R20 Michelin e-Primacy SUV tyres.

Under the bonnet, the Omoda C9 features a 2.0-litre turbocharged inline-4 petrol engine paired to a 7-speed dual-clutch transmission driving the front wheels - though reportedly the Malaysian market will be receiving an 8-speed torque converter style automatic.

Matching the Exeed RX sold in China, the engine produces a stout 261PS and 400 Nm of torque, with all-wheel drive or front-wheel drive. With Jaecoo being a ‘premium off-road’ centric brand, we’re not sure if the C9 will be fitted with any particular modifications to handle extra rough stuff - such as the many drive modes in the Jaecoo J7 in AWD trim.

However, it is confirmed that the C9 will be fitted as standard with an adaptive suspension system they’ve called Continuous Damping Control (or CDC), that can adjust its bias toward comfort or harshness based on the sensors it uses to asses the road ahead.

In other markets, the Exeed RX can also be had with a plug-in hybrid powertrain featuring a 1.5 litre turbocharged inline-four petrol engine and a three-speed dedicated hybrid transmission (DHT). The PHEV system also includes a front electric motor or an additional rear motor for a total system output of up to 619 PS (610 hp or 455 kW) and 920 Nm.

Inside, the Omoda C9 does appear to be a clear step up over the Omoda 5, perhaps justifying the Jaecoo association, with a very pleasing curved aesthetic with full leather upholstery and trim and a large 24.6 (or two 12.3-inch displays ) for driver’s display and infotainment duties - with wireless Apple CarPlay and Android Auto, of course.

There’s the requisite panoramic sunroof, 50W wireless charger, a 540-degree all-round view monitor, 14-speaker sound system by Sony, powered/heated front seats (ventilated and heated) power-adjustable rear seats (heated), and even paddle shifters.

The boot is also quite commodious at 660-litres, expandable to almost 1,800-litres the rear seats collapsed. Also notable is the inclusion of a full-sized spare wheel beneath the boot floor, also wearing one of those Michelin tyres.

On the safety front, the Omoda C9 does come with quite an extensive list of ADAS features including Autonomous Emergency Braking, blind spot monitoring, lane keep assist, and the rest of it, giving the vehicle capability of Level 2.5 semi-autonomous driving.

As we said, there’s still some time left before we see the Omoda C9 (by Jaecoo) hitting showrooms in Malaysia, but registrations interest have opened for keen customers. We’ll have more on this new D-segment entrant into the SUV space as the news breaks.

 

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2024 Mitsubishi Xpander launched - 2 variants from RM99k to RM109k

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As we settle into September, Mitsubishi refreshes its popular Xpander model with a much-anticipated facelift. Now available in Malaysia with 2 variants at a starting price of RM99,980 for the standard Xpander. Up a level, we find the better-equipped Xpander Plus RM109,980.


Although this updated model has already made its debut in Indonesia, it remains a welcome addition to Mitsubishi Motors Malaysia’s lineup, catering to the increasing demand for value-packed, non-national B-segment MPVs (Multi-Purpose Vehicles).

Since its launch in 2020, the Xpander has seen impressive success, with local production numbers reaching 40,000 units over the past four years—equating to roughly 10,000 units per year. Its blend of compact design, high ground clearance, and spacious seven-seater layout has clearly struck a chord with Malaysian buyers seeking a reliable and affordable MPV.

A notable factor contributing to the Xpander's success is its positioning in the market. With Honda deciding not to bring the next-generation BR-V to Malaysia, the Xpander faces little competition from other non-national brands, with the Toyota Veloz being its closest rival. Priced at RM95,000, the Veloz shares much of its underpinnings with the Perodua Alza, leaving the Xpander to cater to buyers looking for a more premium option.

Exterior and Design Updates

The 2024 facelift brings more than just subtle tweaks to the Xpander. Visually, the updated model showcases an updated "Dynamic Shield" front-end design, highlighted by striking sideways T-shaped headlights at the midsection equipped with projector LEDs. Thicker chrome bars further emphasise its new aesthetic, giving the Xpander a more assertive road presence.

At the rear, the facelift includes a large tailgate spoiler (Plus variant only) and a redesigned taillights that mirror the front’s lighting elements. The rear bumper has also been reshaped to feature more angular lines, complemented by vertical reflectors. Both variants, to complete the exterior overhaul, the Xpander now sports stylish 17-inch blade-style two-tone alloy wheels wrapped in Bridgestone Ecopia tyres.

While the updates are impressive, enthusiasts of the Xpander Cross version may be disappointed as there is no indication of its arrival in Malaysia just yet.

Interior Enhancements

Stepping inside the 2024 Xpander, Mitsubishi has made significant strides in improving both comfort and functionality, though some might argue there could have been more added given the price.

The dashboard has been redesigned for a cleaner and more modern appearance, with brown leather trim accents that extend to the door panels, adding a premium feel. A standout feature is the free-standing 9-inch infotainment touchscreen that takes center stage, offering support for Apple CarPlay and Android Auto (wired for both).

Other interior upgrades include a simplified steering wheel design and an enhanced climate control system with a digital display, allowing users to easily adjust fan speed and temperature using physical buttons and toggles.

Additionally, a wireless charging pad has been introduced (Plus variant only), along with an electronic parking brake with an auto-hold function, replacing the traditional handbrake. This change frees up space for a front center armrest, adding to the convenience of both the driver and front passenger.

For rear passengers, middle-row occupants now get a fold-down armrest with integrated cupholders. The second-row seating also includes USB-A and USB-C charging ports, ensuring passengers have access to ample charging options during long trips. As with previous models, a rear air blower mounted on the ceiling provides consistent ventilation throughout the cabin, complete with adjustable fan speeds to ensure comfort for all passengers.

Practicality and Space

Practicality has always been at the core of the Xpander’s appeal, and the facelifted model continues this tradition. With a 2-3-2 seating configuration, the Xpander offers ample space for up to seven passengers.

The middle-row seats come with a one-touch tumble fold mechanism, making it easy to access the third-row seats. When more cargo space is needed, the third-row seats can be folded flat in a 50:50 split, increasing the available cargo capacity to 495 liters.

When the second-row seats are also folded down, the space expands further to a generous 837 liters. Even with all seats in use, the Xpander offers respectable boot space though Mitsubishi declines to supply an exact figure, supplemented by additional underfloor storage for smaller items.

Powertrain and Performance

Under the bonnet, the 2024 Xpander retains its tried-and-tested 1.5-liter naturally aspirated four-cylinder engine, producing 105 PS and 141 Nm of torque. Power is sent to the front wheels via a 4-speed automatic transmission, a setup familiar to existing Xpander owners. While some markets have transitioned to a CVT (Continuously Variable Transmission), Mitsubishi Motors Malaysia has opted to stick with the conventional 4AT. Although a hybrid variant of the Xpander is available in certain ASEAN markets, it is unlikely to arrive in Malaysia due to pricing considerations, potentially adding a further sting.

The Xpander’s suspension setup continues to feature front MacPherson struts and a rear torsion beam, providing a balance of comfort and control that should retain its top spot as the most dynamically talented of its peers.

One significant improvement is the increase in ground clearance, now at 225 mm, making it the highest riding in its class and surpassing even the Perodua Aruz. Elsewhere, its braking system consists of front ventilated discs and rear drum brakes, which are adequate for the vehicle’s size and performance.

Features and Safety

In terms of safety features, here’s where the Xpander falters even in this most recent facelift. Though conveniences have been added such as auto wipers, keyless entry with push-start ignition, and a 4.2-inch color multi-information display nestled between two analog dials, the car continues to fall behind in its feature set and equipment levels where it matters.

For example, it retains the 2-airbag inclusion that it debuted with back in 2020 as well as a notable lack of any active safety (or ADAS) features despite it being a vehicle aimed primarily at young (Xpanding?) families.

This is in contrast to (obvious) rivals from national automakers. For example, the Perodua Alza offers their A.S.A suite even in the base variant while ageing Aruz comes as standard with 6 airbags.

And on the non-national front, the Toyota Veloz is fully kitted-out with Toyota Safety Sense while still being a few thousand Ringgit less expensive than the standard Xpander. New for 2024, however, the Xpander Plus also offers a 360-degree camera (the base Xpander gets a reversing camera) as well as both front and rear dash cams as standard.

The enhanced features, updated design, practicality, and best-in-class handling (at least according to our experience with it) may justify the increase for buyers seeking a reliable and stylish compact high-riding MPV. Despite some shortcomings in the safety department, the Xpander remains a strong contender in its segment, especially for families looking for a versatile and spacious vehicle, but time will tell how it will perform in the face of its competition.

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2024 Mercedes-Benz E-Class (W214) launched in Malaysia from RM356k, CKD from get-go

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The W214 Mercedes-Benz E-Class has finally made its debut in Malaysia, following nearly a year and a half of patient waiting. The Stuttgart outfit's sixth-generation executive sedan, a staple of the Mercedes-Benz lineup, arrives assembled locally in Pekan, hence the competitive pricing.


At launch, Mercedes-Benz Malaysia offers two electrified variants, one more so than the other: the E 200 Avantgarde mild hybrid (MHEV) and the E 350 e AMG Line plug-in hybrid (PHEV).

The starting price for the E200 Avantgarde is RM355,888, or approximately RM4k less than the non-M Sport BMW 520i, arguably its closest rival, at least when optioned with the five-year warranty and service package. On the other hand, the E 350 e AMG Line is priced at RM418,888.

Compared to the previous facelifted W213 models that it supplants, the W214 E 200 is RM14,000 more expensive, while the E 350 e sees an increase of RM19,000. These prices are on-the-road without insurance and include a four-year, unlimited-mileage warranty as well as an eight-year/160,000 km battery warranty for peace of mind.

While the W214 retains much of the familiar body shape and proportions of its predecessor, there are significant updates in its design language. Built on the second-generation Modular Rear Architecture (MRA2), the W214 is slightly larger than the W213, measuring 4,950 mm in length, 1,880 mm in width, and 1,468 mm in height. The wheelbase has also been extended by 22 mm to 2,961 mm. In comparison to the newly launched G60 BMW 5 Series, the W214 is shorter, narrower, and lower but has a longer wheelbase.

The front fascia of the new E-Class features a striking hexagonal grille with a massive three-pointed star logo at its center, a lot like the fully electric cars from its EQ range. The signature 'double-bubble' headlights, meanwhile, are something of a callback to older E-Classes from the past. The E350 e comes with high-end Digital Light projectors with adaptive high beams, while the E200 makes do with simpler LED reflector lamps.

Moving along the sides, the W214 is fitted with flush pop-out door handles that reduce aerodynamic drag, and the previously uninterrupted shoulder line is now split into two, emphasizing the front and rear fenders. The rear end of the vehicle features full-width taillights that continue the double-bubble design, adding a sense of continuity throughout the vehicle’s exterior styling.

Both models in this new lineup feature a turbocharged four-cylinder petrol engine, paired with an electric motor and a nine-speed automatic transmission. However, the two variants differ in terms of power output, especially with their integration of an electric motor.

The E 200 Avantgarde comes equipped with a 2.0-litre M254 turbocharged 4-cylinder engine that delivers 204PS at and 320Nm of torque, while its assistive electric motor adds an additional 23PS and 205Nm of torque, enabling acceleration from 0 to 100 km/h in a pretty respectable 7.5 seconds and top speed of 240 km/h with a fuel consumption rate between 6.7 to 7.2 litres per 100km according to the automaker's own figures.

The E 350 e AMG Line, also known as the E300e in most markets, uses the same 2.0-litre engine but offers a significant increase in electric power thanks to its beefier motor (itself offering 129 PS and 440 Nm of torque) and larger capacity battery, which brings the total system output to 313 PS and 550 Nm.

This version accelerates from 0 to 100 km/h in a brisker 6.4 seconds but has a slightly lower top speed of 236 km/h compared to the E200. The standout feature of the E 350 e is its ability to travel between 100 and 118 km on pure electric power, thanks to a much larger 25.4 kWh lithium-ion battery, the same pack used in the smaller C 350 e plug-in hybrid.

This big bump in range represents a major improvement over the outgoing W213 E 350 e, due to its much smaller 6.2 kWh battery, resulting in just 33 km of fully electric range. This capability allows for practical, emission-free driving in most daily situations.

In terms of charging, the E350e supports DC fast charging at up to 55 kW, which can charge the battery from 10% to 80% in around 20 minutes. A full charge using DC fast charging takes about 30 minutes. Thankfully, the car also features an 11 kW on-board charger, enabling a full charge from an AC wallbox in roughly two hours, outpacing the rate of some BEV's in Malaysia.

Inside, the W214 E-Class introduces a completely revamped cabin, with the steering wheel being the only carryover from the previous generation. The interior is dominated by the latest iteration of Mercedes-Benz User Experience (MBUX), which includes a 12.3-inch digital instrument display and a 14.4-inch infotainment touchscreen. This system uses a zero-layer interface, meaning that commonly used features are always visible on the screen, improving ease of use.

A key highlight of the new MBUX system is its ability to learn the driver’s habits and suggest automating certain functions. The system also includes a digital key feature that works with iPhones and Apple Watches via ultra-wideband (UWB) technology.

The E 350 e takes the tech experience to the next level with an additional 12.3-inch passenger display, forming the MBUX Superscreen, a somewhat more subdued evolution of the Hyperscreen that debuted in the EQS. Controversially, this higher-end variant also includes a selfie camera on the dashboard for taking photos, recording videos, or making video calls via apps like Zoom and Webex - raise your hands if you were clamouring for that feature addition!

Elsewhere ambient lighting, AMG Line components, and high-end materials create a luxurious environment within the cabin, one that's a definite step up from what the W213 was offering.

This new E-Class comes standard with the Driver Assistance Plus package, delivering Level 2 semi-autonomous driving functionality as well as the usual active safety features such as autonomous emergency braking, adaptive cruise control, lane-keeping assist, evasive steering assist, blind-spot monitoring, and all the rest.

Lastly, both variants are also equipped with Pre-Safe Impulse Side, which inflates the seat bolsters to push occupants toward the center of the car during a side collision, reducing the risk of injury. The E350e also adds rear side airbags, bringing the total number of airbags in the car to nine.

 

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2024 BYD Seal Dynamic launched in Malaysia at RM164k - gives EV fence-sitters a compelling option

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Sime Darby Beyond Auto has officially introduced the BYD Seal Dynamic in Malaysia, completing the lineup for the popular EV sedan with a more value-packed offering that’s definitely going to pique much interest from those on the fence.


Priced at RM163,800, the Dynamic variant is RM16,000 cheaper than the RM179,800 Premium version and RM36,000 less than the top-tier RM199,800 Performance model, both of which were launched earlier this year.

In terms of bang for your buck, tt also poses a uniquely compelling fully electric alternative to the similary sized and nearly identically priced Honda Civic RS e:HEV and Mazda 3.

The Dynamic retains most of the high-end equipment found in the Premium and Performance models. These include LED headlights, LED daytime running lights, LED tail lights, retractable door handles, and a panoramic roof. However, the Dynamic does ride on 18-inch alloy wheels with 225/50 Giti Comfort tyres, whereas the other variants feature 19-inch wheels with 235/45 Continental EcoContact 6 Q tyres.

Another visual tell that, potentially, distinguishes the Dynamic from its pricier counterparts is the exterior colors options, being that there are only two: Cosmos Black and Aurora White, omitting the additional colors offered for the Premium and Performance models.

The Seal Dynamic features a single electric motor, essentially mirroring Atto 3 SUV and Dolphin Premium Extended Range in terms of outputs, delivering 204 PS and 310 Nm of torque to the rear wheels. For most intents and purposes, due to the torque figure comparable to the more expensive Seal Premium (360Nm), it should offer very similar day-to-day performance.

These numbers, though, are significantly less than the Seal Performance’s combined 530 PS and 670 Nm, obviously. Still, the Dynamic should have plenty of pep, being able to accelerate from 0 to 100 km/h in 7.5 seconds - slightly quicker than that aforementioned top-spec Civic, if you were wondering.

The Seal Dynamic stores juice in a 61.4kWh Blade lithium-iron phosphate (LFP) battery, which provides a driving range of up to 460 km based on WLTP standards. In comparison, the Premium and Performance variants both come equipped with the larger 82.5kWh battery pack.

Though BYD are stubborninly still fitting all variants of the Seal with a 7kW onboard charger for AC inputs via its Type 2 connection, topping off the Dynamic’s smaller battery is also quicker thanks to its smaller capacity with a full charge taking 8.6 hours compared to the 15+ hours required for the Premium/Performance.

That said, BYD has knee-capped DC charging on the Dynamic to a maximum of 110 kW, enabling a 30-80% charge in 32 minutes. By contrast, the Premium and Performance variants can handle up to 150kW.

Dimensionally, all variants of the Seal are identical, measuring 4,800 mm in length, 1,875 mm in width, and 1,460 mm in height, with a wheelbase of 2,920 mm. However, the Dynamic is lighter at 1,922 kg, compared to the Premium's 2,055 kg and the Performance’s 2,185 kg. Despite the differences in weight, all variants share the same boot space, offering 400 litres at the rear and 50 litres in the front.

Inside, the Dynamic comes with faux leather upholstery, but it boasts the same 15.6-inch central touchscreen with switchable landscape/portrait orientation, a 10.25-inch digital instrument panel, and a 12-speaker Dynaudio sound system as the higher-end models.

It also includes features all the other equiment additions found on the Premium and Dynamic such as ventilated/heated powered seats, dual-zone air-conditioning, keyless entry and start, wireless Apple CarPlay and Android Auto, and two wireless mobile chargers.