Global semiconductors chip shortage likely to extend until year-end

SHAH ALAM - Buyers who book a new car for certain models were expected to wait up to six months due to a lack of global semiconductor chips supply that was disrupted by the Covid-19 pandemic.

President of the Automotive Association Malaysia (MAA) Datuk Aishah Ahmad said she expected that the semiconductor chips shortage will continue at least until the end of the year.

Apart from facing a semiconductor chips shortage, the automotive industry also faced a labour shortage that contributed to the delays in fulfilling vehicle bookings.

"Due to the lack of semiconductor chips, consumers have to wait a long time to get their cars as the automotive industry are unable to install the necessary components in the vehicle.

"This problem also impacts companies selling vehicle spare parts and that also contributes to the backlog of orders by customers that can't be immediately fulfilled.

"So, we hope this problem will end soon so that we can ship out the vehicles before the expiration of the sales tax exemption on June 30," she said.

Last Wednesday, MAA has urged the government to extend the Sales and Service Tax (SST) exemption until end of the year as the industry is unable to fullfill orders due to semiconductor chip shortage.