Abolishing open AP will affect used car players, nation's revenue - Pekema

Abolishing the open approved permit (AP) policy for cars will not only affect players in the imported used car industry but will also impact on the country's revenue, said the Malay Vehicle Importers and Traders Association of Malaysia (Pekema).

Under the National Automotive Policy (NAP) review in 2010, the Open AP system for used vehicles including commercial, passenger and motorcycles, will expire on Dec 31, 2015, meaning that used car imports will no longer be allowed after 2015.

However until now, no decision has been made by the government on this issue.

Pekema president Datuk Zainuddin Abd Rahman said industry players, especially Bumiputera, will lose their source of income with the abolishment of the Open AP.

"When the system is abolished, industry players who depend on this will lose their income source. This issue will not only involved importers, but will also affect the whole ecosystem including car workshops and others," he said to reporters after Pekema's 34th annual general meeting today.

Zainuddin also said up to 2014, the association members had paid a total of RM3 billion covering import and excise duties to the government.

"This included corporate tax and personal income tax which could reach up to RM5 billion overall," he added.

Earlier, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the authorities had retained the AP policy for used cars.

He said the abolishment of the policy was still being reviewed and it was quite complex.

"At the moment, the policy still stands. We still have to iron out some issues," he said.