Demand for rare metals fuels vehicle thefts in Malaysia
Sign up now: Get insights on the biggest stories in Malaysia
Most of these thefts were reported to have occurred in residential areas, public car parks and transit hubs.
PHOTO: UNSPLASH
PETALING JAYA - Catalytic converter theft is rising nationwide amid strong demand for rare metals used in automotive emission systems.
Most of these thefts were reported to have occurred in residential areas, public car parks and transit hubs.
Vehicles left unattended, especially overnight, are among the most vulnerable.
A senior manager at the car service centre said thieves were targeting catalytic converters, which are components beneath the car along the exhaust system, because they contain rare, expensive metals.
The component contains small amounts of platinum, palladium and rhodium – metals used to reduce harmful exhaust emissions.
“Although the quantities are small, just a few grams per unit can fetch high prices.
“Rhodium is more expensive than gold, making the catalytic converter an attractive target.”
He said removal could be done within minutes.
Thieves would slide under the vehicle and cut out the converter using a portable cutter, he said.
Used auto parts dealer Kamaruddin Ayie, who runs a shop in Gombak, said stolen catalytic converters were usually sold to scrap or recycling operators, where the metals could be extracted.
He said that due to the value of catalytic converters, secondhand ones were also becoming harder to find, adding that stolen units were typically sold for between RM500 (S$160) and RM1,500 each in the black market.
Mr Kamaruddin said they were sold to syndicates, who would collect these stolen converters and cannibalise them to obtain the rare materials.
They are then sold to buyers who re-export these metals to China.
Three to seven grams of palladium can be sold between RM300 and RM1,200, while one to two grams of rhodium can fetch between RM1,400 and RM2,800.
One or three grams of platinum can fetch between RM120 and RM500.
As such, a stolen converter can yield RM1,000 on average, depending on its size and the model of the car it came from.
For vehicle owners, replacement costs can be expensive.
Prices range from about RM800 for a lower-end aftermarket unit to between RM5,000 and RM7,000 for an original part, depending on the vehicle model.
Mr Kamaruddin said older vehicles were high on the target list because earlier models tend to contain higher concentrations of these metals.
In addition to automotive emission systems, chemical processing and electronics also widely use platinum, palladium, and rhodium.
Much of the stolen material is reintroduced into global supply chains, especially for electronics, with China identified as a major buyer for refining and manufacturing.
Mr Kamaruddin said the increase in catalytic converter theft was closely linked to global price movements.
“When prices of these metals rise, theft activity tends to increase as well,” he noted. THE STAR/ ASIA NEWS NETWORK
