KUALA LUMPUR: The controversial Approved Permits (AP) system will be scrapped in 2015while foreign firms will be given manufacturing licenses to hold 100%equity in firms, which produce luxury vehicles with an engine capacityof more than 1,800cc and costing more than RM150,000 under the reviewof the National Automotive Policy announced Wednesday.
Under thereview announced by International Trade and Industry Minister DatukMustapa Mohamed, the import duties of all completely-built-up (CBU) andcompletely-knocked-down (CKD) cars will be maintained.
Incentivesand exemptions will be increased to develop local auto parts so thatthere would no longer be parts imports by 18 months’ time, a move whichhelp do away with imported and used spare parts outfits.
Vehicles which are 15 years and above would also have to go through mandatorytesting to ensure their roadworthiness but provisions would be made forvintage cars, he told a press conference to announce the long-awaitedreview of the NAP.
He said that the review was undertaken afterextensive discussions with industry players including manufacturers,assemblers, auto parts makers, non-governmental organisation as well ascar associations.
Mustapa said that there were 18 new policiesand measures covering licencing, duties, incentives, technology andenvironment, safety and standards and APs introduced under the NAPreview.
New policies and measures would be effective from Jan 1, 2010.
Underthe new measures new strategic partnership between Proton and a globalestablished Original Equipment Manufacturer (OEM) will be established.
Currently, Proton is in talks to establish strategic partnership with international partners.
“Up to now, Proton has yet to find a strategic partner,” he said.
Elaboratingon APs, he said the AP system for imports of CBU vehicles will beterminated whereby open APs for used vehicles will be terminated byDecember 31, 2015, which means importation of used vehicles using theAP permit would no longer be allowed after 2015.
“No new applications for open APs will be considered and franchise APs will be terminated by Dec 31, 2020,” he said.
Mustapasaid as part of ongoing efforts to help Bumiputera entrepreneurs in theautomotive industry, a Fund for Bumiputera Development will also beestablished.
Besides this, he said that a charge of RM10,000 foreach open AP will be introduced as announced in the 2010 budget lastweek whereby under current status, APs are issued for free.
A fund will be established to assist Bumiputera companies venturing into the automotive and other related businesses, he said.
Thegovernment would also introduce a mechanism to prohibit the import ofused parts and components effective June 2011, said Mustapa.
Currently,imports of new and used parts and components were allowed without anyrestrictions and might in some cases affect safety and environment, hesaid.
A new measure under the review of the NAP is theestablishment of a gazzetted price for imported used CBU motor vehiclesby the Royal Customs, a move designed to stop the under-declaration ofimported used-cars and abuse of the AP system.
Currently only prices for new imported CBU motor vehicles are gazetted for the purpose of duty compilation, he said. - Bernama
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