MCA has urged the federal government to allow non-bumiputra participation in the supply and manufacture of locally produced vehicles.
 
In a press release today, MCA deputy president Wee Ka Siong said this wants to see that this is part of the National Automotive Policy (NAP).
 
In particular, the party wants to see participation of non-bumiputra supplier and manufacturers in the production and supply chain of Proton and Perodua vehicles.
 
This is part of MCA's wide-ranging suggestions for the third revision of the NAP, which will be announced on Jan 15.
 
Among others, MCA is suggesting that the liberalisation of the automotive industry be expedited to create greater competition, thus stiffing innovation among local car makers.
 
"The slow pace of liberalisation and opening of the car industry to international players has marred the government’s effort in creating a transparent and fair marketplace so that consumers benefit. 
 
"The protectionist policies are also seen as means to protect existing Proton parts suppliers," said Wee.

Abolish AP system

 
MCA also expressed concern over the impending decision to defer the abolishment of the approved permit (AP) system until 2015.
 
APs, issued by the international trade and industry ministry, allows car merchants to import cars tax free. The system was intended to help bumiputra businessmen break into the car retail industry.
 
The documents were initially given out for free, but the second review of the NAP resulted in a RM10,000 fee for each AP to discourage recipients from selling the document for a quick profit.
 
"The deferment of the abolishment of AP system to 2015 was seen as benefiting the few at the expense of consumers. 
 
"Consumers and industry players we spoke to told us that further liberalisation would only expand the business for AP holders, as long as the current system is maintained. 
 
"It is seen as the last run for profits for AP holders until 2015," he said.
 
Car prices in Malaysia are the second highest in the region after land scarce Singapore, mostly because of heavy tax imposed on foreign makes to protect local car manufacturers.
 
This has become an issue during the last general election with Pakatan Rakyat promising to gradually reduce car prices. BN responded by stating the same.