The Malaysian Association of Malay Vehicle Importers and Traders (Pekema) has issued a request to the ministry of trade, investment and industry (MITI) to increase the number of approved permits (APs) for used vehicles from 35,000 units a year to 50,000 units a year, at the same import fee of RM10,000 for each AP, Harian Metro reported.
Increasing the volume of imported vehicles will benefit all parties involved in the imported vehicle industry and its downstream industries, said Pekema president Datuk Mohamed Nazari Noordin, who is confident that the move will boost the industry by more than RM2 billion that is contributed by the imported vehicles industry, and can also generate revenue for MITI from vehicle import fees.
“The Royal Malaysian Customs Department would also collect revenue from import and excise duties as well as road tax. This will also generate income for other industries involved such as the banking, insurance, vehicle warranty sectors and more,” Nazari said.
According to Nazari, the government’s introduction of the open AP policy has increased the number of AP holders from 100 companies to 300 companies, and therefore the current allocation of 35,000 APs annually is not sufficient for all Pekema members.
Nazari hopes that MITI would approve the application from Pekema for the increase in used imported cars by 15,000 units, to 50,000 units annually in order to allow room for more growth in the nation’s automotive market, the Pekema president said in a statement at Pekema’s 42nd annual general meeting, which was also attended by minister of international trade and industry Tengku Datuk Seri Zafrul Abdul Aziz.
In terms of percentage, the proportion of vehicles imported with open APs consist of just 6.8% of the 725,000-unit projected total industry volume (TIV) that has been forecast by the Malaysian Automotive Association (MAA).
This follows a revision of its full-year forecast in July this year as vehicle sales in Malaysia in the first half of 2023 grew 10.3% year-on-year to 366,067 units. In addition, not all vehicles imported by Pekema are sold the same year they are imported, said Nazari.
Meanwhile, MITI will evaluate Pekema’s application for the increase in open APs based on the latest data from Pekema as well as from the ministry of finance, Zafrul said. “The increase to 50,000 units [of open APs] is requested as the current limit of 35,000 units is 30 years old, and no longer reflects the current market. The ministry will refine and work with Pekema for the justification of revisiting [the 35,000 unit limit], he said.
The post Pekema wants more APs for used cars, requests MITI for 35k-unit annual limit to be increased to 50k units appeared first on Paul Tan’s Automotive News.
