APs to stay for now

(NST) – Scheme has brought in more than RM1.5b to govt in last three years, says Mustapa

THE approved permits (APs) to import cars will most likely not be abolished in the near future.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the APs have brought in more than RM1.5 billion in revenue to the government in the last three years, making it difficult to abolish them.

“It is not as easy as it appears. If abolished, it will affect the revenue flow. In the case of the 180 AP holders, the move will also affect the livelihood of their employees,” he said at a media briefing, here, yesterday.

On whether the APs will be abolished eventually, Mustapa said the government is studying various options.

Despite public dissatisfaction over the lack of transparency in the issuance of APs in the past, several quarters have pressed for the extension of open APs until 2020.

Mustapa said any system to replace the APs must mitigate the revenue loss.

Meanwhile, on the switch of Euro 4 diesel to Euro 5 diesel, or clean diesel, he said no date has been fixed as yet.

The government has held discussions with various companies for the past three years, during which they have sought a postponement because of the high costs involved in upgrading their system.

“We recognise that it is an urgent matter for automobiles but the government also wants to balance the interests of the car industry,” Mustapa said.

The potential switch will allow Malaysian vehicles to comply with the ruling in Singapore, whose standards for petrol and diesel vehicles are Euro 4 and 5, respectively.

Singapore had recently ruled that Malaysian vehicles entering the republic must comply with its environmental ruling on exhaust emissions not exceeding 40 Hartridge Smoke Units.

Earlier, Mustapa witnessed the exchange of documents between Pertubuhan Usahawan Generasi Muda Berjaya and Biotech Corp, paving the way to increased participation of young Bumiputera entrepreneurs in the biotechnology sector.