Bumi dealers to government: Keep auto APs

Spectators take photos of a Porsche 918 Spyder during the North American International Auto Show in Detroit, Michigan January 15, 2014. — Reuters pic

By Joseph Sipalan, The Malay Mail

Bumiputera car dealers have asked Putrajaya to help keep their businesses afloat by maintaining the Approved Permit (AP) system, even as the government grapples with growing expectations to liberalise the country’s automotive industry.

The Malaysian Association of Malay Vehicle Importers and Traders (Pekema) said Putrajaya’s continued indecision over the status of the AP system has heightened concerns among its members over how their livelihood would be affected.

“We hope the govenment will continue with the AP system. Maybe review it, but keep it going,” Pekema president Datuk Zainuddin Abd Rahman told The Malay Mail Online when contacted.

When launching the revised National Automotive Policy (NAP) 2014 on Monday, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said that the government has yet to come to a decision on the AP system, which allows permit holders to import cars, saying that a “thorough study” will be conducted after Chinese New Year.

Mustapa later denied that the government was “backtracking” on its decision to halt the AP policy — which is seen as largely benefiting a small section of the Bumiputera community — saying that Putrajaya had found the issue to be more “complicated” than it initially thought.

“We talk to AP people, they also crave employment, participation. We talk to other people, they talk about level playing field,” he said during a question and answer session with the media after unveiling the NAP 2014.

“For the moment, the AP policy remains, which is termination by 2015,” he said earlier.

When the NAP was reviewed in 2009, it was stated that open APs would be terminated by December 31, 2015, while franchise APs would be terminated by December 31, 2020.

Zainuddin said the NAP 2014’s focus on energy efficient vehicles (EEV) is a good move to deal with the rising cost of fossil fuels, but stressed that the government needs to work on reducing excise duties if local players are to remain competitive.

He said that overall car prices will continue to fall in the country, but those in the import business will be hard-pressed to match the lower prices if excise duties remain high.

“At the moment, prices (of imported cars) are a bit high due to the duties. We have asked MoF (Minsitry of FInance) to consider reducing import tax and excise duties.

“For new cars, the import duty is less now, so they should bring dow the used car duties also. The majority of dealers will die if the price remains… what about our cars?” Zainuddin said.

Mustapa had said in the NAP unveiling that the government will not slash excise duties for vehicles as yet, as it accounts for 75 per cent of its total tax collection for vehicles.

He noted, however, that Putrajaya could consider trimming the duties – which have been blamed for high car prices – if the country’s fiscal position is strong enough in the next few years.

The AP system was introduced as an extension of the New Economic Policy, an affirmative action policy that was implemented in 1970 to deal with the income disparity between the majority Malays and the economically strong Chinese community.

Bumiputera dealers hold the lion’s share of APs issued by the government, with open APs typically used to import used cars while franchise APs deal with new vehicles.

Yesterday, PKR lashed out at Putrajaya’s refusal to remove the AP system, saying that the government would not have to backtrack on the scheduled removal of the system if they had done a proper in-depth study beforehand.

”We are also disappointed with the recent flip-flop by BN to maintain the AP system on the excuse that more studies are needed.

”This is no more than an excuse to allow certain groups who are close to BN to gain ridiculous profits when the public continue to be burdened by high car prices,” PKR strategic director Rafizi Ramli and Selangor state assembly deputy Speaker Nik Nazmi Nik Ahmad said in a joint statement.

Dr Mahathir says ending APs means ending Proton and Perodua

Former Prime Minister Tun Dr Mahathir Mohamad (pic) today warned Putrajaya that abolishing the Approved Permit (AP) system would be the death knell of national carmakers Proton and Perodua.

In his blog, Malaysia's longest serving prime minister said without the AP system, foreign car manufacturers would flood the local car industry, leaving Proton and Perodua floundering.

"Malays and other Bumiputeras will be unable to enter the automotive business without the AP system because they are unfamiliar with the market," Dr Mahathir said.

As Putrajaya begins to take steps towards liberalising the automotive industry, Dr Mahathir said it was common for businessmen to do business with people they were familiar with.

"It is difficult to build trust with a business partner or agent when you do not know their background. Worse still, when you know the stranger has no capital and experience," Dr Mahathir pointed out.

"In the past, only a few Malays could afford to import used cars into Malaysia and this disturbed the implementation of the New Economic Policy.

"The objective of the NEP was to eliminate the identification of race with economic functions. To overcome this, the government allowed the importation of reconditioned Japanese cars.

"Aspiring Malay auto dealers were given APs. Even as times changed, the AP system continued for new and second-hand special models."

The demand is such that auto car dealers were prepared to buy the APs at high prices, Dr Mahathir said in his blog.

As part of their benefits, members of parliament are allocated one AP, regardless of the number of terms they have served, although it cannot be sold.

Dr Mahathir pointed out that there were similar systems for essential items such as sugar, flour, rice and other items.

"There are individuals who have benefited from this system for the past 80 years and become billionaires."

"There is no demand to stop these APs and the recipients live a charmed life. So if Putrajaya is reconsidering the AP system, it should include all APs and not just for cars," Dr Mahathir said.

Former Finance Minister Tun Daim Zainuddin came under attack from Malay rights group Perkasa yesterday for supporting the abolishing of the APs.

Perkasa vice-president Dr Zubir Harun said such a move would threaten the livelihood of Bumiputeras. He demanded the government revoke all gaming licenses in Malaysia.

Daim had expressed his support for Mercedes-Benz Malaysia Sdn Bhd president and chief executive officer Roland S. Folger, who suggested abolishing the AP policy.

Dr Zubir said now that Daim had become a corporate figure, he wanted to meddle in the livelihood of his own race. - TMI

Pekema: AP adalah hak istimewa Melayu, Bumiputera

KUALA LUMPUR, 18 April — Persatuan Pengimport dan Peniaga Kenderaan Melayu Malaysia (Pekema) menegaskan cadangan pemansuhan permit mengimport (AP) kenderaan dari luar negara tidak boleh dilaksanakan kerana ia adalah tertakluk di bawah Perkara 153 Perlembagaan Persekutuan, yang mana melibatkan hak keistimewaan orang Melayu dan Bumiputera.

Pengerusi Pekema, Datuk Zainuddin Abd Rahman menegaskan, AP adalah antara hak keistimewaan kepada masyarakat Melayu dan Bumiputera, dan Kabinet tidak berkuasa untuk memansuhkan AP, sebaliknya kuasa itu terletak di bawah bidang kuasa Yang di-pertuan Agong dan Raja-raja Melayu.

“AP ini adalah termasuk di dalam permit. Sama seperti tanah rezab Melayu, biasiswa, memegang jawatan dalam kerajaan dan sebagainya. Permit ini termasuk dalam Artikel 153 Perlembagaan Persekutuan, dan Kabinet tidak mempunyai kuasa untuk memansuhkan AP.

“Hanya Yang di-Pertuan Agong dan Raja-Raja Melayu sahaja yang berhak untuk memansuhkan AP ini,” katanya yang dihubungi The Malaysian Insider semalam.

Justeru, jelas Zainuddin, cadangan untuk memansuhkan AP adalah tidak relevan, begitu juga cadangan Zon Perdagangan Bebas Asia (Afta).

“AP adalah antara inti pati Dasar Ekonomi Baru (DEB) yang paling berjaya. Mungkin ia hanya perlu dipinda supaya sesuai dengan peredaran zaman.

“Melalui pemberian AP, ia melindungi hak keistimewaan masyarakat Melayu dan Bumiputera. Di negara-negara barat, mereka turut mempertahankan hak Bumiputera mereka,” tegasnya lagi.

Jelas Zainuddin, kesan langsung pemansuhan AP akan menjejaskan lebih 70,000 pekerja di sektor automobil yang terlibat, dan beliau mengharapkan kerajaan mempertimbangkan semula cadangan untuk memansuhkan AP tersebut.

“Dianggarkan lebih 70,000 tenaga kerja terlibat dengan AP. Mereka yang bekerja di pusat jualan kereta, bengkel-bengkel di seluruh negara, dan industri yang berkaitan akan terjejas.

“Pekema mengharapkan kerajaan mempertimbangkan semula cadangan untuk memansuh AP tersebut,” tambahnya.

“Melalui AP, kerajaan tidak mendapat sebarang kerugian, sebaliknya memperolehi keuntungan. Sejak 2010, AP di bayar RM10,000 ribu kepada Miti (Kementerian Perdagangan Antarabangsa dan Industri), malah Pekema turut menjalankan tanggungjawab sosial membantu anak-anak Melayu.

“Kami memberikan biasiswa untuk mereka menyambung pengajian, beri bantuan kepada anak-anak yatin, sebagai sebahagian daripada tanggungjawab sosial kami.

“Secara kasarnya, setiap bulan, Pekema akan memperuntukkan lebih seratus ribu ringgit untuk membantu golongan yang memerlukan, jadi tidak timbul persoalan AP ini hanya menguntungkan sesetengah pihak,” tegas Zainuddin.

“Orang yang dengki sahaja yang sibuk hendak mansuhkan AP,” katanya merujuk kepada sesetengah pihak yang cuba membangkitkan perkara itu di Parlimen.

Sehubungan itu, Pekema telah menghantar memorandum kepada Yang di-Pertuan Agong untuk mempertimbangkan pemansuhan AP berkenaan.

“Kami sudah menghantar memorandum kepada Agong minggu lepas, dan sekarang kami masih menunggu jawapan untuk diberi kebenaran menghadap baginda.

“Kami percaya, dalam masa terdekat Pekema akan dapat bertemu Agong dan menjelaskan perkara sebenar,” tambahnya lagi.

Pengeluaran AP kepada pengimpot kereta di kalangan usahawan Bumiputera, adalah antara usaha kerajaan untuk mendekatkan jurang ekonomi di kalangan rakyat.

Dasar pengimportan kenderaan bermotor secara terkawal itu diperkenalkan oleh bekas Timbalan Perdana Menteri, Tun Dr Ismail Abdul Rahman.

Berdasarkan dasar baru kerajaan, jangka hayat AP akan terpakai sehingga 31 Disember 2015.

Dasar itu merupakan antara intipati kajian semula Dasar Automotif Negara (DAN) yang diumumkan oleh kerajaan pada Oktober 2009.

Selain pemansuhan AP, kajian semula DAN itu juga memerlukan syarikat-syarikat pengimpot kereta membayar caj sebanyak RM10,000 bagi setiap kereta yang dibawa masuk dan ini akan membebankan pengusaha bumiputera berkenaan.

Pelaksanaan caj sebanyak RM10,000 bagi setiap AP yang akan diperkenalkan kerajaan akan menyebabkan ramai pengimport kereta menanggung kerugian. Ini kerana banyak syarikat yang tidak mampu untuk menghabiskan kuota AP yang diberikan kepada mereka.