Govt urged to review AP payment imposed on car importers

Kumpulan Rahman Brothers Sdn Bhd group executive chairman, Datuk Abd Rahman Ibrahim, said the payment was quite a burden particularly in view of the depreciation of the ringgit which led to higher operating costs for companies.

"Our subsidiary, Syarikat Rahman Brothers Motor, for instance, has paid RM48.24 million for the AP since the scheme was first implemented in the country," he said.

Abd Rahman said he hoped the International Trade and Industry Ministry could consider a review to either abolish the AP payment or reduce it until the economy stabilises.

He was speaking in a press conference after the official launch of the RM20 million Wisma Rahman Brothers by the International Trade and Industry Minister, Datuk Seri Mustapa Mohamed.

In view of the current economic slowdown, he said the company has to embark on cost-savings initiatives.

The company, he said, had also recently ventured into education and tourism industry in Cambodia.

Earlier, Mustapa in his speech said the government's initiative under the New Economic Policy (NEP) had produced many successful Bumiputera in business and industries.

He said there were not many countries that had similar policies enshrined in their constitution to help develop the indigenous people.

"The NEP helps the Bumiputera succeed. The government gives its guarantee to defend the policy to help the Bumiputera, even though we cannot run away from the economic challenges.