The Open approved permit (AP) system for the import of used cars is set to remain in place. The government says the issue is still being studied, but has not given a timeframe on when a final decision on the matter will come about.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said that the abolishment of the policy was still being studied as it was a rather complex exercise, Bernama reports. “At the moment, the policy still applies. We have yet to resolve a few things,” he told reporters.
The government had said during the announcement of NAP 2014 that an in-depth study on the impact of the termination of Open APs would be carried out, and in August last year the Malaysia Automotive Institute (MAI) stated that the review on the impact of the abolishment of the system was due to be completed at the end of 2014.
The system was supposed to be discontinued by December 31, 2015, under NAP 2009, but the arrival of NAP 2014 left the date open ended. MAI has clearly said it is in favour of terminating the Open AP system, saying it does not contribute to the development of the automotive industry.
Open APs are responsible for the many grey-import cars from right-hand drive countries on our roads. They are distinct from Franchise APs, which are used by principal companies to officially bring in their cars.
In other related automotive matters, Mustapa said that instead of exporting vehicles, the government had identified the export of vehicle components as a positive contributor to the growth of the local automotive industry, instead of exporting vehicles. “We feel that there is greater potential in exporting automotive components, as several Malaysian companies had already succeeded in doing that,” he said.
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AI-generated Summary ✨
Comments express widespread dissatisfaction with the permit policy, viewing it as a tool for cronies to profit and fund political schemes. Many believe the policy keeps car prices high, hampers local industry, and causes Malaysia to lose investment to neighboring countries. There is frustration over corruption, lack of transparency, and the policy's continuation despite promises for reform. Several comments advocate abolishing the permit system to promote fairer competition, reduce prices, and benefit the rakyat.