SHAH ALAM – Owning a car in Malaysia is not just about personal preference anymore; it is significantly influencing how younger couples think about starting a family.
As car prices stayed elevated and public transportation found it challenging to cope with everyday needs, many households were delaying or reassessing plans for having children to ensure they could sustain their economic well-being.
The Head of the Road Safety Research Center at the Universiti Putra Malaysia (UPM) Engineering Faculty, Law Teik Hua, stated that high expenses related to owning a car greatly affected the choices many young Malaysian couples made regarding starting a family.
Besides typical costs associated with raising a child, the transport requirements for an expanding family also pose a notable concern.
"Big cars such as multi-purpose vehicles (MPVs) and sport utility vehicles (SUVs), typically priced above RM80,000, coupled with continuous upkeep and fuel costs, signify a significant monetary pledge. Consequently, many pairs decide to postpone starting a family or keep their household small to uphold fiscal steadiness, particularly amid escalating economic challenges," he mentioned.
Law explained that affordability depends on one's income level.
Although certain individuals consider locally produced cars as affordable options, those same vehicles could be out of reach for many young professionals whose salaries range from RM2,500 to RM4,000 per month when prices exceed RM50,000.
When you consider extra expenses such as insurance, upkeep, and fuel, basic models from brands like Proton or Perodua usually necessitate extended financing periods lasting up to nine years, with these monthly installments eating into a substantial portion of their disposable income.
"While locally produced vehicles may be easier to obtain compared to those from international brands, referring to them as genuinely 'budget-friendly' could be deceptive for numerous entry-level professionals or youthful newlyweds looking to start a family, especially with salaries remaining static and everyday expenses increasing," he further explained.
Law believes addressing car affordability requires multifaceted reform. He suggested reducing excise taxes on competitively priced, fuel-efficient vehicles to benefit first-time buyers and young families. Sponsored vehicle loan programmes could also provide financial relief.
To rebuild confidence in the used car market, he suggested setting up a nationwide vehicle history registry to monitor crashes and water damage incidents.
Promoting the use of greener cars like hybrid and electric vehicles (EVs) via incentives could lead to greater cost-effectiveness and environmental protection over time.
In the automotive sector, certified pre-owned schemes supported by original equipment manufacturers or reliable independent entities might lessen the purchaser's potential hazards.
Enhancing public transportation systems, especially in economically disadvantaged regions, via collaborations between government and private sectors, coupled with incentives for carpooling, taxi apps, and small-scale mobility solutions, could significantly decrease reliance on individual vehicle possession.
Piston.My managing editor and automotive specialist, Keshvinder Singh Dhillon noted the wider social elements influencing the situation.
He emphasized that decreasing traffic jams and encouraging greener travel options ought to stay a key focus.
"Boosting public trust in alternate transportation options, whether it’s via dependable public transit systems, adaptable rental services, or a more secure pre-owned car market, is essential for assisting Malaysians in managing the steep costs of owning a vehicle without sacrificing their quality of life or familial aspirations," he stated.