GEORGE TOWN: Used motor vehicle trading activities are no longer subject to the Second-Hand Dealers Act 1946, a move welcomed by the Federation of Motor and Credit Companies Association of Malaysia (FMCCAM).
FMCCAM president Datuk Tony Khor said the decision marked a significant milestone for the automotive industry and reflected the government’s commitment towards administrative reform and easing business operations.
He said the association appreciated the Home Ministry and the police for confirming that used car dealers are no longer required to apply for or renew the Police Second-Hand Dealer Licence.
“This is a long-awaited decision by the industry,” he said in a statement Thursday (May 28).
He said for many years, legitimate dealers had to undergo annual licence renewals despite transactions already being regulated through the Road Transport Department.
According to an official circular issued by Bukit Aman on April 30, businesses dealing in used imported and locally registered vehicles do not fall within the scope of the Act.
This followed a legal review conducted by the Home Ministry’s legal adviser’s office.
Khor said the requirement had imposed unnecessary administrative burdens and additional costs on more than 5,300 used vehicle dealers nationwide.
He added that FMCCAM had engaged with successive home ministers and inspectors-general of police over the years to review the requirement.
“We are pleased that the government has finally resolved this long-standing issue based on sound legal interpretation and practical industry realities,” he said.
Khor said the decision would help reduce administrative costs and improve the ease of doing business.
He also said it would allow enforcement agencies to focus resources on combating crime and safeguarding public security.
The association said it remained committed to working with the government on further reforms to strengthen the automotive industry and the national economy.
