The Association of Malay Vehicle Importers (Pekema) has urged the government to maintain the policy of approved permits (APs) to import vehicles as part of efforts to develop the country’s vehicle import industry.

Its president Zainuddin Abdul Rahman said APs are still needed to ensure prices of new vehicles are not raised indiscriminately.

"APs need to be maintained for those who are really doing business. It requires a big investment to set up showrooms and the like," he told reporters after meeting with the Council of Eminent Persons at Menara Ilham here today.

He said the AP quota for 2017 is still in use, with nearly 2,000 APs yet to be taken up.

"This was due to the sluggish market, but after the abolition of the GST in June, the market is much improved," he said.

Zainuddin also urged the government to abolish the RM10,000 levy for an open AP.

“There are over 800 types of free APs in Malaysia, but only the open AP is charged a RM10,000 levy," he said.

The Pekema president noted that the government had promised in 2010 that 40 percent of the levies collected would be channelled to members to upgrade their showrooms, another 40 percent to assist bumiputera who have just ventured into the auto industry, and the remaining 20 percent to the Automotive Institute (MAI).

“Pekema members are getting less than one percent, the new players are getting zero percent, and MAI is getting only 20 percent,” he said.

Zainuddin stressed that the AP policy cannot be abolished, as it would go against Article 153 of the Federal Constitution, which grants special rights and privileges to bumiputera.

- Bernama