I have bought a car equivalent to my annual salary before.
It's actually ok.

As someone mentioned, due to Malaysia's high price of cars, you cannot use foreign financial principles to gauge affordability in Malaysia. One year's salary is really quite ok.
You know what is nuts? The gaji RM5k but wana buy BMW 3 series. So many stories like this.

And if you only look at a Car as an A to B tool, then you will spend less on it. That's fine. But some people do like their cars. It makes them happy. So they will spend what you spend, plus a little bit more (hobby money) on the car. So they get a little nicer car.

When you can really afford the car, other considerations come into play. A lot of people view cars as a status symbol too. Some view it as a tool. When you have enough money in life, you will start looking at a car as an investment into safety and also wellbeing. Don't just look from the money aspect. It's like rich people flying their whole family Business Class instead of economy. To the average Joe, it looks like an absurd waste of money. And they will start doing things like "If they flew economy, they would save X amount coumpounded over Y years and eventually have Z money. Aiya, these people bodo wan". Having loads and loads of money in your account isn't the goal. When you get there, you will realize money is only there to give you the life you want.

So here's a little personal story.

I used to work with this colleague. This was many years ago. Worked hard and was very frugal. In fact, he is so frugal he never really invested into the infrastructure in his life like the car he was using. He drove a very old Proton. Never changed since Day 1 he started work. Gaji oredi passed RM20k easily. But he is just super frugal. Shocked us when he passed away in an accident with members of his family. 1 kid. Wasn't even his fault. Another driver rammed into their car. Would he have survived in a more modern car? Perhaps. We will never know. Could he have afforded a more modern car and a Conti? Definitely.

So life is what you make of it. You buy insurance? That's fine. You buy a better car that you can afford? That's fine too.

Different markets different formula.
Cannot use in the Malaysia & Singapore market due to inflated car prices.

Why? The economics looks OK for the Malaysian market.
OK, let's change the metrics.

240k annual is about 20k a month.
A 240k is like a Toyota Camry.

If you earn 20k a month and buy a Camry, nobody bats an eye.