Ministry: Downside to good car sales
The Star Business

KUALA LUMPUR: The Transport Ministry will be bracing for a "headache" if the current upward trend in motor vehicle sales continues. 'Its parliamentary secretary, Datuk Chor Chee Heung, said the resulting higher traffic flow would tax the capacity of existing highways. "If this trend persists, it will become another headache for the ministry because we have to consider whether the present highways can accommodate all the vehicles on the road," he said at the agreement signing ceremony between the Malaysia Automotive Association (MAA) and Tradelink Exhibition Services Sdn Bhd to host KL International Motor Show 2000.

Chor said new car' sales had even surpassed new motorcycle sales between January and September, attributing it to the recovering economy which enabled more Malaysians to buy cars. According to the association figures, the number of new motor vehicle registrations increased by 97% to 207,323 units between January and September, from 105,169 units in the same period last year. "MAA is predicting the figure will reach 280,000 by year's end" said association chairman Aishah Ahmad. She said September was the best selling month, with 26,455 units sold. She said the sales figure for next year has been forecasted at between 350,000 and 400,000 units.

Aishah attributed increased sales to the availibity of financing and the return of consumer confidence in the industry. However, she said the association hoped the Government would reduce motor vehicle duties in the Budget to ensure more competitive prices and to stimulate the industry and the economy.

KL International Motor Show 2000 will be held from Nov 25 to Dec 4 next year and will see over 100 exhibitors displaying new models and futuristic and experimental prototypes. Aishah said exhibitors from Japan, Europe and the United States would take part in the show, adding that the exhibition was expected to draw 500,000 local and foreign visitors.