The government today decided to continue the open approved permit (AP) policy for used cars but with several improvements.
The new open AP policy with improvements will be enforced from Jan 1, 2017 to enable existing companies to comply with the stipulated conditions.
The International Trade and Industry Ministry (Miti) in a statement today said the decision was made after considering the views from various parties as well as undertaking a comprehensive study on the policy.
Among the improvements that will be implemented are giving opportunities to new bumiputera companies that are eligible and truly comply with the stipulated guidelines to participate in this business.
The new policy also took into account the country’s commitment at the international level, Miti said.
Besides that, the government will also implement an appropriate programme by using part of the revenue collected from the open AP fees to enable the public to get benefits directly from the new policy.
Detailed information on the programme will be announced later.
In line with the improvements, a certified independent auditor will be appointed to carry out audits on all companies that carry out this business.
This is to ensure the companies complied with all the guidelines in the new open AP policy and the government would be firm in implementing the audit, said Miti.
The ministry said the open AP policy study that was implemented covered impact analysis, contributions and implications of the open AP policy to the development of the automotive industry, nation’s socio-economy and related government policies.
The study with the involvement of a consulting company was carried out for six months and considered all views from various parties including industry players, consumer associations, several non-governmental organisations and politicians.
It proposed that the open AP policy is continued and the research team opined that the policy provides a choice to the public to buy imported used cars at competitive prices.
The research team also found that the used car import and distribution industry made a significant contribution to the automotive industry and the nation’s socio-economic development.
Among them are contributions to support industry business and services sector such as banks, insurance, shipping and logistics which are estimated at RM450 million annually.
The used car import and distribution business also provides middle and high income job opportunities directly to 3,800 people.
The government through this policy will also receive revenue estimated at RM2 billion per year via collection of taxes and fees.
The study also found that the policy has contributed 5 percent out of the 36 percent bumiputera equity in the automotive sector. Miti said the decision to retain the open AP policy was also made to enable the public to continue to have the opportunity to buy imported used luxury cars and mid-level luxury cars at competitive prices.
If the policy is abolished, the percentage of bumiputera equity participation in the automotive sector will drop to 31 percent.
- Bernama
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