KOTA KINABALU: The Federation of Motor and Credit Companies Association of Malaysia (FMCCAM) is aiming for full compliance with the Interim Ownership Transfer System among its members once the application is made mandatory next month.
Its president Dato’ Tony Khor said the federation had been collaborating with the eAuto and the Road Transport Ministry to promote the online car ownership transfer system among car dealers across the country.
“We want all our members, including those who have just joined us, as well as other car dealers, to use the system so that they can take full advantage of the benefits it has to offer. This online system is easy to use and it’s not only good for the customers who want to sell their vehicles but also to the dealers,” he said.
The Interim Ownership Transfer System, or Sistem Tukar Milik Sementara (STMS) is an online platform where vehicle owners can conduct an ownership transfer without visiting the Road Transport Department (JPJ) offices.
Using only the MyKad and thumb prints of both parties, the STMS allows the ownership of the vehicles to be transferred to used car dealers temporarily for a limited time of six months.
The Ownership Automatic Transfer for permanent ownership to the used car dealers will be effective if the vehicle fails to find buyers within the allocated temporary ownership transfer.
The system was officially launched by the Ministry of Transport in April 2012 but has not been made mandatory after receiving poor response from used car dealers.
While car owners will not be charged for using the system, the dealers will need to pay RM10 to the government and RM15 to eAuto.my to complete an ownership transfer.
They would also be required to register with MyEG Services and place a security deposit of RM1,000 for the equipment needed for running the STMS.
Khor when met after presenting a talk on STMS to car dealers here yesterday, said many were still not using the system as they have no clear understanding on how it works.
“Which is why we are conducting a seminar like today to explain and show to them how STMS could help make ownership transfer much easier for both the car owners and the used car dealers.
“It is very convenient, safe and secure. The purpose of this service is to protect and prevent vehicle owners from being charged for traffic offences which may occur after the vehicles are sold to the used car dealers.
“Hence, all future vehicles’ liabilities will be under the used car dealers’ responsibilities including any traffic offences within the temporary ownership period,” he explained
He added that STMS also helped protect car dealers as they can immediately find out if the car ownership can be transferred or not, which will solve many problems related to ownership issues, such as in cases where the original owner of the used vehicle passed away before the car dealer can find a buyer.
Previously, car dealers would find difficulties selling such vehicles as existing law does not allow transfer of ownership of vehicle which owner has passed away.
“With STMS, this problem do not exist as car dealers now have the temporary ownership of the vehicle,” he added.
The Ministry of Transport initially targeted to have 3,000 used car dealers using the system within the first year of its introduction. However, there are less than 2,000 users subscribing to the service so far.
Khor however was confident that they could get more dealers on board, setting a target of 4,000 federation members and non-members using the system by next month.
“We have been actively conducting a tour across the country to explain and promote STMS among car dealers. We have just concluded our tour in Peninsular Malaysia and now we are focusing on Sabah and Sarawak.
“JPJ is also conducting their own programmes and the response has been very good. It’s just a matter of familiarising the car dealers with the system. Of course there are issues that we need to look at but we are getting there,” he said, noting there were over 5,000 registered used car dealers in Malaysia.