PETALING JAYA: The decision by the government to retain APs (approved permit) is a step backwards, says economists.
FMT quoted Universiti Malaya's Nazari Ismail as saying the removal of APs would initiate healthy competition between local and foreign-based carmakers.
"That will spur domestic carmakers to improve quality and reduce the price. These are all good for consumers," he told FMT.
Nazri however acknowledged that the removal of the scheme will cause Putrajaya to lose substantial revenue which it collected from permit holders.
On July 17, it was reported that the government has no intention to phase out the approved permit (AP) system for car imports.
Investment, Trade and Industry (MITI) Minister Tengku Datuk Seri Zafrul Abdul Aziz said the system was still in effect even though the government is allowing Tesla Inc, a global electric vehicle (EV) maker, to sell cars in the country without the usual AP rules.
"We are not discussing that (abolishing the AP system) yet, (there is) no intention at this point of time," he told reporters after officiating at the Proton Global Investors and Vendors Convention 2023.