National Automotive Policy 2009 Review Results

[sbirdz]

The results of the NAP review were revealed this morning. The following are the updates I’ve been getting so far, this post will be updated as I get more information.

• A total of 18 new policies and measures covering licencing, duties, incentives, technology and environment, safety and standards and APs to be effective January 1st 2010.
• Open AP system to be scrapped by December 31 2015.
• AP holders will be audited twice a year.
• A gazetted Customs pricelist for used CBU cars to be established to supplement the current list of new CBU cars. This will be used to prevent underdeclaration of grey import vehicles by declaring then as “used” instead of new in order to manipulate the price, as the gazetted pricelist is currently only for new vehicles.
• A large chunk of the RM300 million expected to be collected from the RM10,000 per Open AP fee to be used to develop the auto industry and increase Bumiputra entrepreneurship participation in the auto industry.
• Import duty on CBU & CKD cars maintained.
• Import of used parts to stop in June 2011 (what???).
• Incentives and exemptions will be increased to develop local auto parts.
• Franchise APs to be terminated by December 31 2020.
• Foreign firms can apply for manufacturing licenses to hold 100% shares in firms to produce vehicles with engine capacity of larger than 1,800cc and costing more than RM150,000. This will open up the upper end of the market while keeping the lower end where Proton and Perodua are protected.
• Issuance of new Manufacturing License to be unfrozen for selected segments – hybrid and electric vehicles, pick-up trucks, commercial vehicles and motorcycles with engine capacity of 200cc and above.
• Vehicles 15 years and older will have to be tested for roadworthiness; provisions to be made for vintage cars.
• A new strategic partnership between Proton and an established manufacturer will be established.

---------- Post added at 03:09 PM ---------- Previous post was at 03:06 PM ----------

Chop Shop parts gonna FLY another higher round squeezing the final few rounds of months left over for us to do our purchase i guess. ^-^

After that, we have to force to beli barang baru... :D Fuiyo!~~ I guess Wing Hing gonna make a huge profit for sure...

and AP gets declared another 5 more years... What a cool move...

:) I guess we haven't teach this little Atas-Atasan a lesson good enough... maybe next year onwards, we be seing lots of old monster car start to come out and runs like mad track car due to no more license, renewal & spare parts for them. :)

 

[Barchetta]

The New National Automotive Policy

KUALA LUMPUR, Oct 28 (Bernama) -- Foreign firms will be given manufacturing licenses to hold 100 per cent equity in firms which produce luxury vehicles with an engine capacity of more than 1,800 cc and costing more than RM150,000 while the controversial Approved Permits (AP) system will be scrapped in 2015 under the review of the National Automotive Policy announced Wednesday.

Under the review announced by Minister of International Trade and Industy Datuk Mustapa Mohamed, the import duties of all completely-built-up (CBU) and completely-knocked-down (CKD) cars will be maintained.

Incentives and exemptions will be increased to develop local auto parts so that there would no longer be parts imports by 18 months' time, a move which help do away with imported and used spare parts outfits.

Vehicles which are 15 years and above would also have to go through mandatory testing to ensure their roadworthiness but provisions would be made for vintage cars, he told a media conference to announce the long-awaited review of the NAP.

He said that the review was undertaken after extensive discussions with industry players including manufacturers, assemblers, auto parts makers, non-governmental organisation as well as car associations.

Mustapa said that there were 18 new policies and measures covering licencing, duties, incentives, technology and environment, safety and standards and APs introduced under the NAP review.

New policies and measures would be effective from Jan 1, 2010.

Under the new measures new strategic partnership between Proton and a global established Original Equipment Manufacturer (OEM) will be established.

Currently, Proton is in talks to establish strategic partnership with international partners.

"Up to now, Proton has yet to find a strategic partner," he said.

Elaborating on APs, he said the AP system for imports of CBU vehicles will be terminated whereby open APs for used vehicles will be terminated by December 31, 2015, which means importation of used vehicles using the AP permit would no longer be allowed after 2015.

"No new applications for open APs will be considered and franchise APs will be terminated by Dec 31, 2020," he said.

Mustapa said as part of ongoing efforts to help Bumiputera entrepreneurs in the automotive industry, a Fund for Bumiputera Development will also be established.

Besides this, he said that a charge of RM10,000 for each open AP will be introduced as announced in the 2010 budget last week whereby under current status, APs are issued for free.

A fund will be established to assist Bumiputera companies venturing into the automotive and other related businesses, he said.

The government would also introduce a mechanism to prohibit the import of used parts and components effective June 2011, said Mustapa. :stupid::stupid:

Currently, imports of new and used parts and components were allowed without any restrictions and might in some cases affect safety and environment, he said.

A new measure under the review of the NAP is the establishment of a gazzetted price for imported used CBU motor vehicles by the Royal Customs, a move designed to stop the under-declaration of imported used-cars and abuse of the AP system.

Currently only prices for new imported CBU motor vehicles are gazetted for the purpose of duty compilation, he said.

Mustapa also said that the review would maintain the freeze on manufacturing licences (ML) for rebuilt activities.

"At the moment, new ML for rebuilt activities is frozen," he said.

He said that no equity condition is imposed for new ML under the revision of NAP.

However, the review maintains current policy on contract assembly to utilise existing excess capacity.

Mustapa said that the freeze on issuance of new ML will also be lifted for selected segments include hybrid and electric vehicles, pick-up trucks, commercial vehicles and motorcycles with engine capacity of 200cc and above.

Touching on the current rates of import duty and excise duties being maintained, he said that currently, the excise duty for CBU and CKD vehicles based on engine capacity was 75-105 per cent for passenger cars, 60-105 per cent for multi-purpose vehicles and vans, 65-105 per cent for four-wheel drives and 20-30 per cent for motorcycles.

-- BERNAMA

 

[joshua7paul]

haha..was about to post this in ZTH...

yea i find it weird..y wanna prohibit the import of used parts/components?...

what do they mean?..no more halfcut shop?...if thats what it is...then bring down the import duty/tax/etc...then we can buy them parts new..

 

[mizunori77]

Really damn HOT after reading the news.

KUALA LUMPUR: The controversial Approved Permits (AP) system will be scrapped in 2015 while foreign firms will be given manufacturing licenses to hold 100% equity in firms, which produce luxury vehicles with an engine capacity of more than 1,800cc and costing more than RM150,000 under the review of the National Automotive Policy announced Wednesday.

1) which and how many foreign car that we see on the road is above 1.8 litre and cost more than RM150k? looks like Proton's 'market' is still being protected.

2) even if there are foreign car models that are above 1.8 litre AND foreign companies are allowed to own the local manufacturing facility, how many will actually buy a 1.8 litre car for RM 150k? those who can afford BMW, AUDI, Merc, other European cars most likely wont benefit also.

3) AP will only be abolished in 2015. WTF happened to AFTA? People who wish to setup company after the AFTA starts cant profit when the AP is still around. How to do business?

Under the review announced by International Trade and Industry Minister Datuk Mustapa Mohamed, the import duties of all completely-built-up (CBU) and completely-knocked-down (CKD) cars will be maintained.

4) Again. WTF happened to AFTA? Our govt lie to ASEAN + 3 again (3 is Japan, Korea & China)

5) These duties will be maintained until when? No end date is given?

Incentives and exemptions will be increased to develop local auto parts so that there would no longer be parts imports by 18 months’ time, a move which help do away with imported and used spare parts outfits.

6) Are local manufacturers able to produce SIMILAR quality parts for ALL foreign cars? what if you drive a Merc and your ECU is fried. Are you going to plug in a locally produced ECU? What happens to your car warranty for using a 'non-Mercedes' part?

7) What is the reason for the ban of imported parts? So far, no logical reason is given.

Vehicles which are 15 years and above would also have to go through mandatory testing to ensure their roadworthiness but provisions would be made for vintage cars, he told a press conference to announce the long-awaited review of the NAP.

IMPLEMENT this on the commercial vehicles like lorries, buses and other heavy vehicles first la. Black smoke everywhere. Breakdown everywhere.

He said that the review was undertaken after extensive discussions with industry players including manufacturers, assemblers, auto parts makers, non-governmental organisation as well as car associations.

9) mana report? the rakyat wants to see what are the feedback of those industry players. be more transparent about the findings. discussion doesn't mean mutual agreement.

Mustapa said that there were 18 new policies and measures covering licencing, duties, incentives, technology and environment, safety and standards and APs introduced under the NAP review. New policies and measures would be effective from Jan 1, 2010.

10) List down all these 18 new policies and also existing policies. Don't last minute give surprises and force us to accept 'because govt has already discussed with industry players.'

Under the new measures new strategic partnership between Proton and a global established Original Equipment Manufacturer (OEM) will be established.

Currently, Proton is in talks to establish strategic partnership with international partners.

“Up to now, Proton has yet to find a strategic partner,” he said.

11) So after 20 years, its back to OEM designs and technology from 'strategic' partners. talk and promise so much, at the end, back to square one.

Elaborating on APs, he said the AP system for imports of CBU vehicles will be terminated whereby open APs for used vehicles will be terminated by December 31, 2015, which means importation of used vehicles using the AP permit would no longer be allowed after 2015.

“No new applications for open APs will be considered and franchise APs will be terminated by Dec 31, 2020,” he said.

12) Looks like AFTA has changed from ASEAN Free Trade Agreement to Ada Free Trade Agreement?

Mustapa said as part of ongoing efforts to help Bumiputera entrepreneurs in the automotive industry, a Fund for Bumiputera Development will also be established.

Besides this, he said that a charge of RM10,000 for each open AP will be introduced as announced in the 2010 budget last week whereby under current status, APs are issued for free.

A fund will be established to assist Bumiputera companies venturing into the automotive and other related businesses, he said.

13) Mana 1Malaysia? Only bumiputera can do business in automotive and 'other related business'? Other Malaysians no need to do business or make profit? Bumiputera companies still need help after they get exclusivity of AP for so many years? Why so long still need help? They dunno do business give to other Malaysians. Don't waste AP. Otherwise, the Rakyat sees this as CRONYISM.

The government would also introduce a mechanism to prohibit the import of used parts and components effective June 2011, said Mustapa.

Currently, imports of new and used parts and components were allowed without any restrictions and might in some cases affect safety and environment, he said.

14) I wonder if he will kena sue by the OEM like Mitsubishi, Honda, Toyota, Nissan, BMW, Merc, etc for saying their original parts and components in some cases affect safety and environment.

A new measure under the review of the NAP is the establishment of a gazzetted price for imported used CBU motor vehicles by the Royal Customs, a move designed to stop the under-declaration of imported used-cars and abuse of the AP system.

15) So if the current bumiputera companies are abusing the APs. WHY STILL GIVE TO THEM AND EXTEND UNTIL 2015? Nothing better to do ar?

 

[DDgreystar]

becoz of this new NAP ruling, chop shop parts will become even more expensive since by 2011 no more chop parts !!! i guessed ?

 

[deacon]

I couldn't agree more with you Mizu. This is quite fucked especially considering my car is already 16 years old.

 

[spermicide]

Import of used parts to stop in June 2011

i protest!!!!

 

[cataphrax]

• Import of used parts to stop in June 2011. Incentives and exemptions will be increased to develop local auto parts so that there would no longer be parts imports by 18 months’ time, a move which help do away with imported and used spare parts outfits.

i'm guessing local auto parts will only be manufactured for local cars (duh) and cars brought in by toyota / nissan / honda. what about parts for newer grey import cars which only come in in small quantities? what about all the 15 years and older cars? where are those guys gonna find parts? order from overseas? buy from ebay? as far as i know imported parts are taxed at about 40%. after you add that and shipping fees and stockist profits how much are the parts gonna cost? what about downtime? each time some major engine component breaks your car has to just sit in the workshop and wait for your part to be special ordered and arrive here is it? what about parts parts that are no longer produced new?

• Vehicles 15 years and older will have to be tested for roadworthiness; provisions to be made for vintage cars.

do they even have the resources to execute this grand plan? how many puspakom stations are there? can they handle the sudden influx of old cars coming in for testing? how often will will this testing be done? annually? once every 5 years? by the looks of it they are slowly weeding out all the old cars. they'll probably label 40% of all old cars that come in for the test as not being roadworthy. not roadworthy, cannot sell because puspakom tak pass. what you going to do with your car? get that 5K rebate voucher from proton when you trade in your old junk and buy a saga?

and this is just what affect the average car user? what does this mean for automotive enthusiasts like us? no more halfcut shop where to source for budget performance parts? already there is no support from the government for grassroot motorsport endeavors (instead they pump money into F1) and now they're cutting off our supply of parts. go for any grassroots drift / track / autocross event and check the average age of the cars being used la. a large bulk are cars that are 15 years or older.

 

[ken yeang]

what a bloody fuck@@ up policy.

I wasn't hoping much anyway from the screw up NAP in the first place.

 

[TitanRev]

WTF, with the stopping of import parts......bugger....I protest this...

 

[cataphrax]

i think alot of us werent sitting at the edge of our seats anyways, hoping for the all the duties and taxes to be miraculously dropped thus making all the cars dirt cheap. coz we all know there is no way in hell they're gonna let proton defend itself alone in an open market. i think atleast perodua will be able to survive. but this is beyond fucked up. its like each time they review and revise the automotive policies the situation gets worse. already we are subjected to ridiculous priced new cars which he have to pay through our throats for 5-9 years for, now you drop this. atleast last time ppl had the option of buying an old toyota / honda / nissan to be your daily workhorse as they relatively cheap to buy and maintain. but by the looks of it with this new policy that won't be the case anymore. the individuals with higher disposable incomes won't really be affected by this. the everyday person like you and me will be the one who'll end up with the short end of the stick. you and me will just eventually be strong armed into buying protons and peroduas.

 

[jombiee]

Holy Crap.....i'm speechless, faaarrrkk
BN...you faIL ! No more votes from me, period !!

 

[sbirdz]

BN!?!?!

 

[mizunori77]

I couldn't agree more with you Mizu. This is quite fucked especially considering my car is already 16 years old.

your car is 16 years old? oh shit... looks like you'll have to start paying extra just to keep your car road legal.

i don't understand WHY they don't go for the commercial vehicles first. there are so many huge vehicles causing accidents and traffic jams when they break down in the middle of the road.

 

[xbalance2002]

WE need to re-vote again ...hope better result

Last time say 2004 AP will be open then postpone and postpone now better postpone till 2015...

What will happen??? when proton in that year will they able to produce good quality car?

as we see china auto maker their built & design is alot better then our local some more they are very young in this market....