National Automotive Policy 2009 Review

• 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 annually for roadworthiness; provisions to be made for vintage cars.
• A new strategic partnership between Proton and an established manufacturer will be established.
• Ministry of Natural Resources and Environment to establish clear roadmap for fuel standards and quality towards Euro 4M standards to be implemented by 2011
• Automotive Development Fund and Industrial Adjustment Fund will be continued. Despite excise duty and import duty being the same across the board for all makes whether ‘national’ or foreign, cars that have a decent amount of local content as well as proof of local activities such as R&D will receive incentives from the funds. This is where national makes like Proton gets an advantage – despite an equally high excise duty, it gets rebates because its cars are developed locally. Supposedly anyone who meets the fund requirements are able to get the same incentives, but it’s safe to say only Proton has that much investment in the Malaysian auto industry.
• Exemptions on statutory income from exported goods will be increased to 30% from 10% for goods with at least 30% value-added content (I’m guessing this means local content), and from 15% to 50% for goods with at least 50% value-added content.

Source: paultan.org