New National Automotive Policy should incorporate timeline to phase out
APs so that Malaysian consumers do not have to continue to pay more
for cars in Malaysia than other countries after more than two decades
of Proton protection
======================================
Deputy Prime Minister, Datuk Seri Najib Razak yesterday quashed media
reports that the government is ready for a total revamp of the current
policy of Approved Permits (APs) to import cars, ending the
"prosperous free-ride" of some AP holders, when the National
Automative Policy is unveiled later this month.
Stating that the government would deliberate the matter thoroughly
before making any announcement, Najib said: "We cannot be hurried in
this AP issue because there are many implications that we need to
consider as it is in connection with the National Automative Policy".
>From Najib's guarded response, it would appear that there
would be
further delay in the announcement of the new National Automative
Policy, which had already been postponed many times. Overhanging the
issue of the new National Automative Policy is the question whether
there will be a new Minister for International Trade and Industry after
18 years.
In deciding on the new National Automative Policy, the Cabinet should
ensure the incorporation of at least two elements, transparency and
protection of the interests of the Malaysian consumers.
Former Prime Minister Tun Dr. Mahathir Mohamad said yesterday that it
would be "interesting" to study the APs list for imported cars for
2003 and 2002 because the numbers then were not as big as those given
last year and this year. (Sunday Star)
After the meeting between a Backbenchers Club (BBC) delegation with
Mahathir over the APs controversy on August 1, the question was raised
as to why there was
a sudden jump of APs issued from 20,000 in 2002
and 2003 to over 60,000 in 2004 and 2005.
Such a simple query should have been easily clarified by a government
which believes in accountability and transparency. Unfortunately, no
answer has been forthcoming as the Ministry of International Trade and
Industry has lost compass and focus with the self-imposed "silence"
of the Minister for International Trade and Industry, Datuk Paduka
Rafidah Aziz in the past ten days.
There must not only be transparency, the new National Automative
Policy should also incorporate a timeline to phase out APs to abolish
the AP system for car imports so that Malaysian consumers do not have
to continue to pay more for cars in Malaysia as compared to other
countries after more than two decades of Proton protection.
Car prices in Malaysia are one of the highest in the world in
money
terms and even higher in relation to our modest per capita income, as a
result of Proton protection.
A Honda City for instance cost over RM80,000 in Malaysia but only about
half the price at the RM40,000 price range in Thailand.
An analyst yesterday gave the following examples to illustrate how the
Malaysian car purchaser is "thoroughly fleeced" as the result of
APs protection for Proton:
· A Toyota Camry goes for A$32,000 (RM92,000). In Malaysia it is
RM170,000.
· In the US, a top range Mercedes retails for US$50,00 (RM190,000)
while in Malaysia it exceeds RM450,000.
· In the 70s, the car-to-monthly wage multiple (for a recently
qualified graduate) was low, at about 10 (10 months' wages). This
crept up to about 15 in the 80s, and is now almost 40 (i.e. 40
months' wages for the graduate's first car).
Parliament should have debated the APs controversy when I proposed an
emergency debate on
the last sitting of the Dewan Rakyat on 7th July
but it was rejected by the Speaker, Tan Sri Ramli Ngah as not a matter
of urgent public importance.
Events have proved how wrong was Ramli's decision to reject my motion
of urgent definite public importance for 7th July, as the failure of
MPs to debate the APs controversy in its 12-day meeting from June 20
to July 7 is a "black-mark" for Parliament and proof that it is
not yet ready to become a "First World Parliament".
Parliament should make amends for its failure to address the APs
controversy and establish a Parliamentary Select Committee on
International Trade and Industry to give input as well as to monitor
the National Automotive Policy, especially with regard to the two
elements of transparency and the time-span for the abolition of APs for
imported cars to allow Malaysian consumers to buy cars of comparative
price and quality as in other
countries.
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