The “Approved Permit” (AP) system must be one of the most lucrative money making scheme created for a privileged few, even by Malaysian standards.
So how does it work?
1) Get the government to restrict the import of cars to those with APs
2) Get the government to issue the APs exclusively to you
3) Get the government to impose up to 300% duties on imported cars.
4) Sell the APs for at least RM40,000 each to car importers / traders / franchise holders
5) Pocket the RM40 mil for the 1,000 APs issued per month, pat yourself on the back and thank you lucky stars that you are one of the privileged ones…
The situation has become even more ridiculous, as Malaysia has entered into a free trade agreement with Japan, which means that there will no longer be any import duties on cars made in Japan. However, as one needs an AP to import Japanese cars, the people can’t benefit from this free trade agreement.
What is the consequence of this policy?
1) Cars (especially Japanese) in Malaysia are among the most expensive in the world
2) The people suffer, as they could be driving better quality and newer cars. Instead, the average person will have to make do with the rattles and shakes of a used Proton. (if someone will only do a study on the number of fatal accidents caused by old vehicles, with no airbags like Proton.
How much longer will the Government maintain this policy which benefits few (really, really benefit) at the expense of the rest of the population?