The government proposal to give RM5,000 incentives to people who discard their cars aged more than 15 years is timely to boost back the economy of the country. Motor vehicle is an important industry as it contribute jobs and security to may workers worldwide directly and indirectly. In the US, GM and other big makers are seeking government’s bailout package to rescue the industry and many big Japanese giant makers are reducing output as demand dropped as people postpone their car purchase due to the worrying recession.
Once the incentive is introduced will people start replacing their cars for new one. In Malaysia their could be millions of car that aged more than 15 years and easily more than half of that figure will take the incentive. If everyone decides to get a new car, that mean the demand for car will increase. At the same time other industries that are related to automobile industries will be able to improve their business performance.
People’s confidence will once again restored as job will be secured and that bring back consumer confidence in spending that will bring more life to other industries such as electronics and others.
I don’t have a 15 years old car but I welcome such move by the government which I think should have been introduced long time ago and car lifespan should be shorten to only 10 years after which it must be discarded. Not that the car is no longer safe on the road but it will also improve the quality of our lives and environment.
Of course there are other things that need consideration too, like the affordability by the low income people especially when getting a new vehicle which is not cheap as to compare to our per capita income.
Let us see how the public going to react to this proposals.