Government’s decision to retain approved permit (AP) system a regressive move, according to economists

Government’s decision to retain approved permit (AP) system a regressive move, according to economists

Last week, minister of investment, trade and industry Tengku Datuk Seri Zafrul Abdul Aziz reiterated that the government has no intention of phasing out the approved permit (AP) system for vehicle imports despite providing a leeway for Tesla.

He said that the AP system would remain in effect even though the government has allowed Tesla Motors to sell its vehicles in Malaysia without the AP rules required of other car companies selling cars in Malaysia, as the American EV maker was the first approved applicant in the ministry’s BEV Global Leaders initiative.

The decision to continue with the scheme is a regressive move, say economists. While acknowledging that dismantling the scheme may cause the government to lose substantial revenue that it now collects from permit holders, Universiti Malaya’s Nazari Ismail said that the removal of APs would allow for healthy competition between local and foreign-based carmakers, as FMT reports.

“That will spur domestic carmakers to improve quality and reduce the price. These are all good for consumers,” he told the news portal.

Government’s decision to retain approved permit (AP) system a regressive move, according to economists

Carmelo Ferlito of the Center for Market Education agreed, saying that abolishing the AP scheme would
create better competition and benefit consumers. “Removing APs will not (only) allow consumers to have access to more products at a more affordable price, but it will also create a competitive push for local producers, forcing them to improve on price and technology,” he said.

He noted that the government’s move to grant Tesla the exemption was undoubtedly aimed at furthering the country’s electrification efforts, but asked if it could have perhaps been done differently. “This is not wrong in principle, but I would have preferred (that a different mechanism be used such as imposing) different sales taxes, for example,” he said.

He said this was because the exemption gave the impression that preferential treatment was being given to a brand rather than for a product. “This may create an issue in the government’s relationship with other suppliers who have operated in Malaysia for a long time,” he said.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Helenesssssssssssssssss on Jul 26, 2023 at 6:47 pm

    1. T20 no need to pay duty taxes for their Teslas. EV cars also have no road tax and some EV cars have special no taxes or duties incentives
    2. the B40 pay some duties and taxes for their national cars (vs Langkawi prices).
    3. the people in between, the M40 pay fat taxes and duties for their Hondas and Toyotas
    I will continue driving my old waja, kelisa and old e36 325i – they’re all 20 years old and above

    Like or Dislike: Thumb up 56 Thumb down 7
    • Tok Kopiah on Jul 26, 2023 at 7:16 pm

      Say NO to Ap. Say NO to PN.aza

      Like or Dislike: Thumb up 53 Thumb down 13
      • Who is in charge now? PN or who? So stupid

        Like or Dislike: Thumb up 27 Thumb down 6
        • munkay on Jul 26, 2023 at 8:19 pm

          Funniest shiz I’ve read today! Truth be told if PN says they’ll abolish APs, excise and import duties on vehicles – I’d give them my vote.

          Like or Dislike: Thumb up 20 Thumb down 25
          • Walaun judi KDN on Jul 26, 2023 at 8:52 pm

            Deswai PN midin Madey kuat plotek 9Naga

            Like or Dislike: Thumb up 20 Thumb down 3
          • But in the end, PN only helps mercedes only except all brands. Even PN also doesn’t care about Proton and Perodua

            Like or Dislike: Thumb up 12 Thumb down 3
          • Civic Turbo 2018 on Jul 27, 2023 at 8:37 am

            No problem la
            New TESLA so cheap
            Grey-importers ASS pain already
            As long as sane new vehicles is cheap
            Grey-importers will die-off also one..

            Like or Dislike: Thumb up 7 Thumb down 0
        • Presiden Persatuan Peniaga Kenderaan Melayu on Jul 26, 2023 at 8:29 pm

          We all feel traumatic 33mth under PN govt too.

          Like or Dislike: Thumb up 25 Thumb down 8
        • PN and Tun M are the ones who have making prices higher for implementing AP, no wonder why. Even PN also protecting mercedes but don’t care other brands. Yet, volkswagen, beemer, lexus and audi and tesla aren’t luxurious as mercedes, which is more or less same category as mazda. And people are also suffering, just like poor and middle. That’s why PN always care for themselves and mercedes too

          Like or Dislike: Thumb up 39 Thumb down 6
          • Bluely on Jul 26, 2023 at 9:33 pm

            True that. During pandemic under Madey and PN, have been jacking up all prices three times for most of car brands for every beginning of the year, except for mercedes, which is too weird. I really hope that our government under PMX will hapus AP or finding more ways to bring down car prices which will bring back glorious day in the future including premium brands like camry, bmw, mini, tesla and vw and yes on what you said everywhere, will also not include luxurious brands like benz, roll royce, ferrari and lamborghini as government are also helping mostly on poor and middle

            Like or Dislike: Thumb up 13 Thumb down 4
          • Wan Zhafri on Jul 26, 2023 at 10:43 pm

            So stronkkk Tsunami Tolak PN Memadey

            Like or Dislike: Thumb up 12 Thumb down 2
          • same same on Jul 27, 2023 at 9:02 am

            Conclusion :

            Politicians no matter which side only care about their own pockets 1st. Majority of the rakyat is the least of their concerns.

            Like or Dislike: Thumb up 5 Thumb down 0
      • Janji hapus AP mana? on Jul 27, 2023 at 4:59 pm

        As above or is it yet another PH janji dicapati?

        Like or Dislike: Thumb up 2 Thumb down 5
    • Nurul Izzah on Jul 26, 2023 at 7:36 pm

      PH menang, AP hapus

      Like or Dislike: Thumb up 13 Thumb down 2
      • Fake News on Jul 28, 2023 at 6:43 pm

        Fake news kuat ni. Atas dah kompem AP masih jalan tapi PJ masih janjikan AP akan dihapus. Langsung dah xleh nak caya lagi.

        Like or Dislike: Thumb up 0 Thumb down 10
        • Memang betul on Jul 29, 2023 at 8:03 am

          kita langsung tak boleh percaya Fake News.

          Like or Dislike: Thumb up 6 Thumb down 0
          • Ya lah on Jul 29, 2023 at 9:07 am

            Komen2 daripada Fake News ni langsung dah xleh nak caya lagi.

            Like or Dislike: Thumb up 1 Thumb down 0
    • Karensssssssssssssssw on Jul 26, 2023 at 8:15 pm

      Then stop complaining and be a T20

      Like or Dislike: Thumb up 2 Thumb down 15
      • Helenesssssssssssssssss on Jul 26, 2023 at 8:48 pm

        Are you one of the T20 AP holders?

        Like or Dislike: Thumb up 17 Thumb down 0
        • New World Order on Jul 29, 2023 at 11:51 pm

          Kamu nanya?

          Answer : Yes

          PN or PH will be the same as our money will do the talking.

          Like or Dislike: Thumb up 0 Thumb down 0
  • The government dare not disrupt the golden rice bowl of the cronies, plain and simple.

    Like or Dislike: Thumb up 38 Thumb down 1
  • Ongtk on Jul 26, 2023 at 6:58 pm

    TESLA is leveraging on its EV buisness to upsell its Starlink broadband services. What exceptional value has it brought into the country other than the roll out of Tesla proprietary EV charging infrsstructure. But our government has only itself to blame for the slow roll out of charging infrastructure. Guidelines are notably absent and only today we read the BOMBA is providing one.

    Like or Dislike: Thumb up 14 Thumb down 1
  • seancorr on Jul 26, 2023 at 7:12 pm

    I think this has been mentioned over the past decade but nope, govt still want to feed the few fat cronies.

    Like or Dislike: Thumb up 25 Thumb down 1
  • DAP Korup on Jul 26, 2023 at 7:37 pm

    As usual promise 1st, lie later.

    Like or Dislike: Thumb up 14 Thumb down 16
    • PN Tun M Korup on Jul 26, 2023 at 9:10 pm

      Same can be said for PN, but PN and also Madey making so many broken promises compare to previous ones and under Anwar administration but not for under Madey administration leads for second stint

      Like or Dislike: Thumb up 18 Thumb down 3
  • Member2 pekema on Jul 26, 2023 at 8:09 pm

    Regressive to the nation but progressive for us earth princes. Free money they said. Revoke already takkan kami duk membangau tunggu BR1M dari gomen? Dah la anak bini ramai commitment punya tinggi

    Like or Dislike: Thumb up 7 Thumb down 3
  • That is why we are the only asean country that does not get cars assembled in other asean countries. You see philipines, Indonesia, Thailand all have various asean made cars but not here as cost of AP as it is fully imported, is prohibitive. Ford everest is a good example.

    Like or Dislike: Thumb up 14 Thumb down 0
  • ROTI CANAI on Jul 26, 2023 at 9:30 pm

    say taknak to AP

    Like or Dislike: Thumb up 19 Thumb down 0
  • Pretty sure if the government grants APs to a coop selling imported cars that distributed the APs among the coop members, we would have more balanced wealth distribution.

    Instead, we got some megarich who could not even properly branch out to other business even with millions of ringgits AP seed money.

    Anyway, I think APs should stay, but only for car models not officially distributed locally by the manufacturers. Like Honda S660 or FIAT cars.

    Like or Dislike: Thumb up 2 Thumb down 4
  • Boy Racer on Jul 27, 2023 at 12:24 am

    As long as Zafrul is in charge, nobody dares to disturb the rich and powerful AP holders.

    It’s no coincidence why we have fallen so far behind Indonesia and Thailand in automotive investments.

    Like or Dislike: Thumb up 11 Thumb down 1
  • Ben Yap on Jul 27, 2023 at 8:19 am

    AP is given out to bumiputeras. if majority of AP holders are non-bumis, it will be phrased out long time ago.

    Like or Dislike: Thumb up 14 Thumb down 3
    • Shhh… Don’t say it like that brother. Later they will tell us, “X suka balik negara u balik”.

      Like or Dislike: Thumb up 5 Thumb down 3
      • Lolwhut? on Jul 27, 2023 at 5:01 pm

        Ironically DAP goons in Gomen now telling landprinces to balik negara when it is their land. LOL

        Like or Dislike: Thumb up 5 Thumb down 13
    • Please madani says no 3 arse.
      Gomen using AP to reward tetired judges, top civil servants, senators by making v9nsumers pay for their lifestyle. They then sell it to guys like naza, eho then sells it to parallel importers. I think this is how it works.

      Like or Dislike: Thumb up 1 Thumb down 0
  • ThePolygon on Jul 27, 2023 at 8:19 am

    Samelah.. rakyat addicted to subsidy, gov addicted to AP.

    Like or Dislike: Thumb up 3 Thumb down 0
  • GengM on Jul 27, 2023 at 8:36 am

    AP is to serve “ENTITLEMENT” Class. Else NO $$ to pocket Oh…
    Cannot LIVE…
    HOW COME TESLA CAN BYPASS SPECIAL “ENTITLEMENT”

    Like or Dislike: Thumb up 3 Thumb down 0
  • They need money. There are huge support base too feed. Here people support where the money is and not what is right.

    Like or Dislike: Thumb up 2 Thumb down 1
  • OKU minister where can abolish AP. He don’t have the ability to make money for the country from other means to replace the AP revenue. Nothing new. OKU ma

    Like or Dislike: Thumb up 3 Thumb down 0
  • This AP system has to be abolished, it’s a backward and regressive policy which only benefits a few cronies.

    Like or Dislike: Thumb up 5 Thumb down 0
  • Squid on Jul 27, 2023 at 9:38 am

    I would have to agree with retaining the AP system in place. Some form of control is better than leaving the market open to everything.

    However, the system must be revised to benefit the people instead. What they did with Tesla is a fine example but at the same time, relook into existing players that have also contributed their technology and provided so many jobs. They deserve the same treatment.

    Like or Dislike: Thumb up 0 Thumb down 8
  • Henry on Jul 27, 2023 at 10:19 am

    The Government want to have the cake and eat it.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Levin on Jul 27, 2023 at 11:04 am

    I think they will still retain AP for grey importers but silently allow car manufacturers to setup their hub here and bring in their cars without AP. So it’s like technically screwing up grey importers without them knowing. Just notice how these grey importers had to slash prices down up to 100k since Tesla announced their pricing here. I don’t mind retaining the AP, but give the car manufacturers to bring in their car without AP… in time, grey importers can be more competitive with their pricing to get consumers to buy their “used” recond cars. Right now, these dealers just put whatever figure they want on the recond cars and sell them for a hefty profit.

    Like or Dislike: Thumb up 4 Thumb down 1
  • john dough on Jul 27, 2023 at 3:48 pm

    REMOVE AP SYSTEM.

    It must feel so limiting be in a country where there are limitations to the type of business you can open. No Free will. All depends on which crony you know to get AP.

    The average Malaysian car lover cant even import their dream car even if not that expensive, FYI Zafrul the DUNGU increased the Classic car import year allowance from 25 to 35 year old cars just few years ago.

    Like or Dislike: Thumb up 0 Thumb down 0
  • For people hoping a chance by changing government, sorry. The money involved is too high. One can pretend to be Malaysia saver but what he did reveal who he is.

    Like or Dislike: Thumb up 1 Thumb down 0
 

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