Pekema: AP removal threatens Bumis
KUALA LUMPUR: Removing the open approved permits (APs) and the franchise APs will go against the government's aspiration to protect and preserve Bumiputera interests, said The Malay Vehicle Importers and Traders Association (Pekema) president Datuk Zainuddin Abdul Rahman.
He said this in reaction to a New Sunday Times article published recently.
The article cited the Malaysian Automotive Institute (MAI) as saying the policy to remove open approved permits by 2015 and franchise APs by 2020 remains intact, as outlined in the National Automotive Policy 2009.
MAI was incorporated under the International Trade and Industry Ministry in 2010 to coordinate the local automotive industry.
Zainuddin claimed that Pekema had previously not been consulted in the NAP's formulation in 2009, although any decision to remove the AP to import vehicles will affect Bumiputera entrepreneurs' livelihood.
"Therefore, in this context, the phasing out of AP can be seen as a threat to Bumiputeras' participation in the automotive sector,"he said in a statement yesterday.
Zainuddin added that the AP removal plan will make it tough on AP holders to diversify into other businesses as the banks may not be convinced with their ability to make repayments without the AP business.
He also took a swipe at the Malaysian Automotive Association (MAA), saying the industry body continuously painted a grim picture that the imported used vehicles segment had affected the franchise holders' business.
"The imported used vehicles segment accounts for about six per cent of the overall vehicles sales volume in the country. It's only six per cent. So how does it affect MAA members' business?" Zainuddin asked.