Koperasi Amanah Pelaburan Berhad KAPB Malaysia is the World’s 2nd biggest importer of reconditioned Japanese cars as reported by Japan’s Ministry of Finance in 2015. Malaysia imported nearly 55 billion Yen (about RM1.93 billion) worth of reconditioned cars from Japan.
The automotive market is very volatile. While the top end buyers, of which there are relatively few, are quite consistent, the mid-range and the lower end of the market is quite price sensitive.
Whilst the super rich are relatively less price sensitive despite price hikes for luxury vehicles, the mass market is sensitive to FX fluctuations from weaker ringgit that translate into higher car prices. Fortunately, financial institutions play a large part in financing auto ownership based on credit history and monthly disposable income.
The premium cars will likely see a shift down to smaller and lower priced models, business people still will want the prestige of ownership, but may opt for premium reconditioned cars. Due to the uncertainties related to the exchange rates, business owners will tend to be more prudent in car purchases.
Hence, Business Koperasi Amanah Pelaburan Berhad KAPB focused its investment on the trading of imported used luxury and premium cars where most of the buyers are genuine, which resulted in faster turnover of stocks and higher returns on investment.