A (legal?) get rich quick scheme known as the Approved Permit (AP) will soon cease to be a golden goose for certain highly connected Bumiputera businessmen. It is a get rich quick scheme simply because the licences are free and virtually risk less as each can be on-sold to importers for instant cash. The only catch is you have to be somebody who knows somebody to get an AP. Initially it was supposed to be abolished by 2010, now its 2015. Tomorrow it could be 2020 …Why do we need APs to import cars in the first place?
Import Licensing through the AP was introduced in 1970 with the objective of promoting and providing opportunities for Bumiputera entrepreneurs in the automotive sector. APs also serve as a mechanism used to control the number of vehicles allowed to be imported into Malaysia. Every imported vehicle requires an AP and it is only given out to car dealers and/or importers, individuals, diplomats and Members of Parliament. APs limit the number of imported vehicles in the country therefore (artificially, forcibly) protecting the market for Malaysia's national cars [Proton, Perodua, Naza (?), Inokom (?)].
Is this a fair trade practice? Granted it was an affirmative action with the objective of nurturing Bumiputera auto businessmen but how many (apart from the NAZA Group) have actually taken the initiative and capitalised on the programme to build a proper auto business?
Why can’t any individual apply to the relevant ministry/department (MITI/JPJ/Kastam etc) every time they want to import a car? Of course strict conditions and limitations will be imposed and adhered to every time an application is made but the freedom to apply must first be granted.
The AP programme has been around for 39 years; it should have nurtured more than 1 independent, successful Bumiputera auto entrepreneur within that time, anything less would be considered a failure. Something which fails needs to be abolished or replaced, simple.
Proton is 25 years old. It should be able to stand on its own four wheels. If it still needs government protection that means it has failed. Sell it to Volkswagen.
Can I have one too, please?
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