A more liberal and open system for the automotive industry will be introduce.The current AP system did not contribute to development of automotive industry in Malaysia.Read the full news from Bernama below.
AP SYSTEM WILL NOT REMAIN FOREVER.
The Approved Permit (AP) system introduced to realise objectives of the National Automotive Policy (NAP) via Bumiputera participation will not remain forever.
Deputy Prime Minister Tan Sri Muhyiddin Yassin said this was because the practice was inconsistent with the World Trade Organisation (WTO) regulations as it was a form of restriction on international trade.
“Countries committed to WTO like Malaysia has to do away with trade barriers including import licence and AP to ensure a liberal and open trade system.
“A more liberal and open system will benefit export oriented countries including Malaysia,” he said when opening the RM30mil Mutiara Motors building here today.
Muhyiddin said vehicle manufacturers and assemblers had complained that APs did not contribute to development of the national automotive industry.
Moreover, auditing by the Ministry of International Trade and Industry found that AP holders did not abide by the guidelines aimed at helping Bumiputeras.
The automotive industry could not depend on the government forever and should diversify their business to remain competitive.
He said motor vehicle sales this year was expected to drop 12.4 percent or about 480,000 units.
However, the drop was not as bad as by other countries in the region as the automotive industry was focused on the domestic market.
Meanwhile, Muhyiddin urged Bumiputera entrepreneurs to form strategic partnership to seize opportunities via the Asean Economic Community (AEC).
He told Johor Malay Chamber of Commerce members that a cooperation network was important for investors and entrepreneurs wanting to follow development of AEC which would be realised by 2015.
“AEC offers a market of 570mil population with Gross Domestic Product (GDP) which exceeds the United States USD1 trilion.