(From left) Ismail, Khalid and Wan Zaid at the press conference in Kuching yesterday.
KUCHING: Association of Malay Importers and Traders of Motor Vehicles Malaysia (Pekema) is worried about the effects of the abolishment of the Open Approved Permit (AP) on Bumiputera entrepreneurs.
Its central deputy president Datuk Wan Zaid Wan Abdullah said there were talks that the abolishment would take effect next year.
“We hope the government will conduct an in-depth study on the effects of the abolishment of the Open AP. If implemented, the presence of Bumiputera entrepreneurs in the industry will cease to exist,” he told a press conference after Pekema Sarawak’s 26th annual general meeting (AGM) here yesterday.
He cautioned such a move would mean complicated steps for car loan applications and higher interest rates.
Without Open AP, the pricing of cars would rely solely on the manufacturers, and there would be no competition.
Open AP serves as a guideline for price of cars to ensure ordinary folks could afford cars, he explained.
Wan Zaid suggested that the RM10,000 levy for Open AP be abolished instead as it was unnecessary, a burden, and increases the price of cars.
He said a few years ago, the levy collected reached almost RM1billion, but it had yet to be distributed to members.
If abolished, the price of cars would be lowered and higher quality cars could be brought into the market for the benefit of the people, he argued.
Meanwhile, the AGM also discussed about increasing the corporate social responsibility (CSR) programme of Pekema members, for example, on education and poverty eradication.
“We are sympathetic to the plight of the needy and the disabled. This year alone, we are sponsoring 10,000 students in Kuching area and Pekema spends RM5 million a year on CSR nationwide.”
Wan Zaid said Pekema would work with the Education Department to help needy students in terms of tuition classes and other aid to help them do well in their studies.
Also present were Pekema honorary secretary Datuk Nadzir Sheikh Fazir, Pekema Sarawak president Datuk Abang Khalid Tan Sri Datuk Amar Abang Marzuki and Pekema Sarawak deputy president Ismail Saufi.