Proton vendors: Bar import of cars that compete with us

  • Business
  • Thursday, 21 Jul 2005

APPROVED Permit (AP) holders should be barred from importing cars that directly compete with national cars, the Proton Vendors Association said yesterday. 

Its president Dr Wan Mohamed Wan Embong said only vehicles with engine capacity of more than 2 litres should be allowed to be imported regardless of whether they are new or used. 

The AP holders should also obtain approval or a no objection letter (NOL) from Proton Holdings Bhd and Perusahaan Otomobil Kedua Sdn Bhd before being allowed to import the cars into the country. 

Besides this, other than those classified as vintage cars, cars more than five years old must not be allowed to be imported, he said. 

The association was making these recommendations for the Government's consideration in drawing up the National Automotive Policy, expected to be unveiled in September, Dr Wan Mohamed told Bernama. 

He said the declared price of imported vehicles for Customs clearance must be based on the open market value (OPV) of the country of origin or approved prices by a council formed by the government in which the national car manufacturers are represented.  

He also said the Asean Free Trade Area (Afta) policy should be reviewed whereby it should define and differentiate between the car assembler and the manufacturer, a move that would give the national car makers a fair deal.  

He said the vendors also hoped the government would make a mandatory requirement to state and follow the rule of origin (ROO) for single, cluster or module parts and components to meet the 40% Asean Content Policy Classification. 

The 40% content policy should be redefined to include specifically the requirement that parts and components be manufactured in Asean and not assembled. 

Dr Wan Mohamed said the association was also proposing a policy on Vehicle End of Life (VEOL), saying that it would be critical for continued growth and sustenance of the Malaysian automotive industry and the economy. 

He said the policy would ensure continued market demand for new vehicles as well as employment opportunities. 

Singapore has also implemented a similar policy where old vehicles are subjected to higher taxes and maintenance fees, he said. 

On another note, Dr Wan Mohamed said special incentives or grants should be given to the national car makers and vendor proportionate to their investments in areas of research and development, engineering and testing facilities and overseas market development and level of export achieved. – Bernama          

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