The Malaysian Anti-Corruption Commission (MACC) has launched a probe into suspected malpractices within the local tyre industry, focusing on allegations of price manipulation that have placed significant financial strain on consumers.
According to sources, a primary concern is the importation of approximately 300 containers of tyres annually. Some of these tyres are reportedly unsafe or unsuitable for Malaysian roads, posing serious risks to road safety.
The government is estimated to lose up to RM70 million annually due to discrepancies in import duty collections, particularly involving around 100,000 imported tyres, primarily for heavy vehicles, with an average price of RM1,600 per unit. These losses stem from unpaid import duties of up to 40% on tyres from non-AFTA (ASEAN Free Trade Area) countries, compounded by the evasion of the 10% Sales and Services Tax (SST), the source revealed.
“MACC is closely monitoring the situation and will initiate a formal investigation if warranted,” the source stated.
Datuk Mohamad Zamri Zainul Abidin, senior director of MACC’s Special Operations Division, confirmed the investigation when contacted but declined to provide further details.
The probe coincides with growing concerns over escalating tyre prices in Malaysia, which have risen by 5% to 10% in recent years. Some sources claim prices have tripled since 2022, a surge often attributed to the weakened ringgit. However, questions persist about the quality and safety of imported tyres available in the local market.
Jamil Manan Supri, founder and advisor of the Road Safety Expert Association, previously highlighted that tyre-related issues are a leading cause of road accidents, particularly those involving heavy vehicles. He criticized the lack of robust enforcement, describing incidents involving “flying tyres” on highways as “ticking time bombs” that could result in catastrophic accidents without warning.
