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 Business

Maintain Approved Permit policy – Association

11th July, 2018

KUALA LUMPUR: The Malaysian Association of Malay Vehicle Importers (Pekema) has urged the government to maintain the policy of Approved Permits (APs) to import vehicles as part of efforts to develop the country’s vehicle import industry.

Its president Datuk Zainuddin Abdul Rahman said APs are still needed to ensure prices of new vehicles are not raised indiscriminately.

“APs need to be maintained for those who are really doing business. It requires a big investment to set up showrooms and the like,” he told reporters after meeting with the Council of Eminent Persons at Menara Ilham here on Tuesday.

He said the AP quota for 2017 is still in use, with nearly 2,000 APs yet to be taken up.

“This was due to the sluggish market, but after the abolition of the Goods and Services Tax (GST) in June, the market is much improved,” he said.

He also urged the government to abolish the RM10,000 levy for an open AP.

“There are over 800 types of free APs in Malaysia, but only the open AP is charged a RM10,000 levy,” he said.

He noted that the government had promised in 2010 that 40 per cent of the levies collected would be channelled to Pekema members to upgrade their showrooms and the like, 40 per cent to assist Bumiputeras who have just ventured into the auto industry and the remaining 20 per cent to the Malaysia Automotive Institute (MAI).

“Pekema members are getting less than one per cent, the new players are getting zero per cent, and MAI is getting only 20 per cent,” he said.

Zainuddin stressed that the AP policy cannot be abolished as it would go against Article 153 of the Federal Constitution, which grants special rights and privileges to Bumiputeras. –Bernama

   
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