EXPLODING AIRBAGS, ‘DIESEL GATE’ AND THE AUTO INDUSTRY IN MALAYSIA

The National Consumers Complaints Centre (NCCC) reports millions of Ringgit of potential loss to consumers in the auto sector. Consumer complaints in the auto-sector involved more than RM 135 million (value of products - cars / workshop services) from 2010 to 2013. The report also showed that in 2014 consumer complaints on general consumer products were worth RM 12 million (in terms of product value).  

Against the backdrop of rising cost of living, rising prices of houses and private vehicles, Malaysians are often left with a sour after-taste after purchasing these properties. Car loans, other than personal loans make young workers vulnerable to bankruptcy and contribute to high levels of household debt in Malaysia. 

Statistics from the Household Income and Basic Amenities Survey Report 2009, shows a trend that an individual earning about RM3,000 a month could spend up to 50 per cent of her / his income to maintain a car.

A spate of safety recalls in the private vehicle sector has eroded confidence in vehicle safety – such as the fatal air bag, unintended acceleration and faulty ignition. Performance claims have been fraudulent – evident from the defeat device used in Volkswagen. 

Despite many international recalls and the death of a Malaysian due to the faulty airbag, we still lack a competent authority with the likes of US NHTSA to oversee safety and performance of road vehicles. There is no authority to carry out market surveillance on vehicle parts, protective and safety equipment, crash test and mandatory New Car Assessment (NCAP) rating. There is severe limitation of labs and testing facilities to support market surveillance and assessment of energy efficient vehicle (EEV) performance.

With relatively poor public transport connectivity and reliability, owning a private vehicle has become almost indispensable to many Malaysians. The Malaysian Automotive Association has reported that more than 600,000 new cars hit the road in Malaysia last year and maybe this year and next – further clogging road systems and parking lots. 

Thus, the following demands are made on behalf of Malaysian Consumers:

1. To setup a (new) vehicle safety competent authority similar to the US NHTSA (National Highway Transportation Safety Administration) with wide ranging powers on both safety and performance of any vehicles (private, commercial and public) and safety of road users. 
2. A reform of the road vehicle safety and performance regulatory infrastructure is URGENTLY needed. Address all related regulations, legal infrastructure, policies and roles of all agencies to minimise redundancies and clutter, improve transparency, accountability, predictability and efficiency in regulatory system of road vehicles. 
3. Implement strict and clear warranty laws (Lemon Law) for the auto – sector – URGENTLY. This may lead to amendments of other Acts and Regulations. (and preferably covering all consumer products (especially household appliances, furniture and hi-tech gadgets/ devices) 
4. Disclosure of NCAP (New Car Assessment Programme) rating to buyers of new vehicles must be made mandatory by the new competent authority similar to the US NHTSA.
5. Mandatory compliance with UNECE Standards on (enforced by the new competent authority similar to the US NHTSA): i. the safety performance of vehicle for front and side impacts (UN Regulations Nos. 94 and 95); ii. pedestrian safety (UN Regulation No. 127); iii. the safety of electric vehicles and their high-voltage batteries (UN Regulation No. 100).
6. To implement mandatory safety incidents reporting system and recalls mechanism (see Australia’s product www.recalls.gov.au ). A voluntary incident reporting already exists with the - APEC Product Safety Incidents Information Sharing System (www.psiiss.net) developed managed by Standards Users since 2012.
7. To ensure that international best practices on product safety management and recalls such as the ISO 10377 (Consumer product safety — Guidelines for suppliers) and ISO 10393 (Consumer product recall — Guidelines for suppliers). 
8. Use the UN Guidelines for Consumer Protection to review, assess and improve consumer protection, domestic trade and environmental well-being in Malaysia. 
9. The Prime Minister’s Department should establish an independent Consumer Product Safety Commission or extend the powers of the Malaysian Competition Commission – under the PM’s Department. Product safety regulations are implemented by competent authorities and require sound technical knowledge about product safety and risk assessment.