Government Still Studying Plan To Abolish APs, Says Mustapa

(Bernama) – The government is still studying a proposal to abolish the approved permit (AP) policy for the import of vehicles, says International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

“When we look deeper, we find that it is a little difficult, there is an impact on employment and government revenue,” he told reporters after witnessing an exchange of documents between Pertubuhan Usahawan Generasi Muda Berjaya Malaysia (GMB Malaysia) and Malaysian Biotechnology Corporation Sdn Bhd (Biotech Corp).

Mustapa said in the last three years, the government has collected about RM1 billion from the issuance of APs.

Any alternative to the AP system should be able to make up for the loss of government revenue, he said, adding removing APs would affect the incomes of employees of 100 companies who are AP holders and, indirectly, the national economy.

Mustapa said his ministry is still studying the proposal and it is still too early for the government to consider the options.

Meanwhile, on the implementation of the Euro 4 diesel standard in Malaysia, the minister said the government has still not decided on the date of conversion.

He said the government has been engaging with the various companies in the last two or three years and made a decision but could not implement it as the costs involved are quite exorbitant for the oil companies.

“According to the oil companies, it’s going to cost them a lot of money to upgrade their system, factories and plants.

“They were asking for a postponement, so we are now still talking to them as part of the team led by Pemandu (Performance Management Delivery Unit),” he said.

Mustapa said the automotive sector is quite keen for the government to adopt the Euro 4 standard.

“This is urgent because many countries have moved to Euro 4 and some are already planning for Euro 5, we are way behind.

“If I was in the auto sector, I would be worried that there is no certainty as to when Euro 4 is going to be used in the country.

“What the government is doing now is to balance the interests of the auto industry and the interests of the oil refiners,” he said.