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
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