There are only about 20k to 50k APs sold per year, which means hardly anyone is buying a car that requires an AP. How can removing AP make the public happy? Perhaps people have been confused by excise tax, import duty and AP. I suspect they have no interest in AP removal at all, except to stop certain quarters from robbing the rich.....

’The total number of APs issued was 51,559 in 2004, decreasing to 27,838 in 2007. But in 2008, it spiked to 40,886 before being reduced again to about 20,000 in 2009.’

http://www.thestar.com.my/story.aspx/?file...6411&sec=nation

This post has been edited by hwt: Jan 22 2014, 01:21 PM

Here, go read -

http://www.themalaysianinsider.com/malaysi...tand-ap-system/

Rafizi says Mukhriz does not understand AP system
BY CLARA CHOOI
ASSISTANT NEWS EDITOR
SEPTEMBER 14, 2012
Rafizi (second from right) speaking at the public forum in Kuala Lumpur on September 13, 2012. With him are other members of the panel. Rafizi said people are forced to buy cars because of the poor public transportation system. — Pictures by Choo Choy May
Rafizi (second from right) speaking at the public forum in Kuala Lumpur on September 13, 2012. With him are other members of the panel. Rafizi said people are forced to buy cars because of the poor public transportation system. — Pictures by Choo Choy May
KUALA LUMPUR, Sept 14 — PKR’s Rafizi Ramli last night scoffed at Datuk Mukhriz Mahathir’s rebuttal to Pakatan Rakyat’s (PR) plan to reduce car prices, mocking the deputy minister for his alleged lack of understanding of “how cars are sold” and the government’s Approved Permit (AP) system for imported vehicles.

The PKR chief strategist, when kicking off PR’s forum series for its “Reduce Car Prices” campaign here, said it was clear that Mukhriz, the son of former Prime Minister Tun Dr Mahathir Mohamad, “certainly does not understand the open market mechanism”.

“We have waited over two months for a response from Mukhriz to our proposal. He is the one who controls the AP system... two months and I had already given up hope.

“But now he has responded strongly on the basis of saying that our suggestion to auction the APs will not reduce car prices. I am sure Mukhriz does not understand how cars are sold.

“I don’t think he even understands the AP system and certainly does not understand the open market mechanism... he has been confined to a controlled environment for too long,” Rafizi told the public forum at the Kuala Lumpur Selangor Chinese Assembly Hall.

As a part of PR’s plan to slash the triple tax burden imposed on cars sold in Malaysia, PKR had in July proposed auctioning off APs for imported vehicles through an open bidding process in the first three years under PR’s rule before abolishing the system entirely in 2015.

When announcing the proposal, Rafizi had explained that if an estimated 70,000 APs are awarded every year, the auction should fetch more than RM3 billion in revenue annually for the government.

This, he explained last night, would help compensate for part of the RM7 billion in annual losses expected from PR’s plan to slash excise duties, which currently run as high as 105 per cent.

But in his response to the suggestion earlier yesterday, Mukhriz had criticised the idea, saying that it goes against logic as an auction would only cause the price of each AP to go higher than the current RM10,000 that the government currently charges.

Rafizi, however, repeated that the auction would help raise government income, which could in turn compensate for the potential losses from the PR plan to cut excise duties.

Explaining further later, his PR colleague from the DAP, Petaling Jaya Utara MP Tony Pua, pointed out that by auctioning off APs, the income from the sale of the permits would go directly into the government’s pockets.

“When we auction off the APs, those genuinely importing cars will still continue to purchase the permits and the government gets the money, instead of the middlemen who have special access to these APs.

“We all know that 80 per cent of APs go to 20 per cent of the companies applying for them,” he said.

During the forum, which was also attended by panellists Dr Dzulkefly Ahmad, the PAS Kuala Selangor MP, and IDEAS chief executive Wan Saiful Wan Jan, it was also explained that PR’s plan to slash car prices would not translate into a greater population of cars on Klang Valley’s already crowded roads.

Pua pointed out that the current “vehicle-to-individual” ratio in the Klang Valley has already surpassed one vehicle to a person, jokingly pointing out that “when a baby is born, that child already has a car”.

He explained that with this in mind, this meant that the reduction of car prices would not increase the density of vehicles on the road as an individual could only drive one vehicle at a time.

“So even if you decided to purchase another car, the ratio on the road is already one vehicle to a person... how many cars can you drive at any one time? You can only drive one car at a time,” he pointed out to laughter from the audience.

Rafizi had earlier explained this as “transportation elasticity”, which he said was a measurement of the likelihood that an individual would decide to purchase a vehicle or opt for public transport based on a variety of variables.

He pointed out that at present, the high rate of vehicle ownership in Malaysia was largely due to the poor public transportation system, making it a “necessity” for an individual to purchase cars.

Should public transportation be improved, Rafizi said it would no longer be a necessity to own vehicles and the reduction of car prices would eventually be translated into an interest to “upgrade” current vehicles.

“After all, we know that even though half of those in the Klang Valley earn incomes of less than RM2,000, they tend to own cars.

“Meaning, this has nothing to do with being poor or rich, they are forced to own cars because of the poor transport system. Therefore, lowering car taxes will not mean they will buy more cars, it only means they might upgrade,” he said.

Concurring with Rafizi’s view, Pua said the government could opt to spend some RM1.5 billion to increase the number of buses plying Klang Valley roads to reduce traffic congestion, instead of the estimated more than RM50 billion for the Klang Valley MRT project, the country’s most expensive infrastructure project to date.

He pointed out that in Singapore, which has a land mass that is smaller than the Klang Valley but a similar population size, there are some 3,300 buses on the streets, on top of its “fantastic MRT system”.

“Here, we only had 800 and this year, we increased to 1,000 buses... and we are a more dispersed population but we have a tremendous shortfall in buses,” he said.

Rafizi also earlier also raised a suggestion to introduce a “car scrap policy” in Malaysia once PR’s policies are rolled out, pointing out that the increasing volume of cars on the road (10.3 million in the Klang Valley) was largely due to a lack of such a policy.

Under a typical car scrap policy, a vehicle that is 10 years old would have to be sold off to be reconditioned.

“But at present, a car scrap policy cannot be implemented due to the huge microeconomic impact on the people because cars are now just too expensive for people to buy again every every five or 10 years,” he said.

During the forum, Dzulkefly also pointed out that PR’s plan to reduce car prices by slashing taxes would ultimately help reduce household debt, which currently stands at RM653 billion, or 80 per cent of the country’s Gross Domestic Product (GDP).

Rafizi wanted APs to remain. He did not want to abolish or do away with APs.

I think he was aware that more and more medium to high end cars are assembled in this region, so fewer APs may be sold to offset the loss of government income due to excise tax reduction. I will be glad to see him running a virtual auction to gauge how much people are willing to pay, and show us a trend from now till the next election.

Historically about 30k APs are sold per year. If it turns out people are willing to pay the publicized historical price of 10k MYR per AP, the revenue from APs is about 300m MYR per year. Divide it by 500k non-AP cars sold per year, in average excise tax reduction for each new car is 600 MYR. Proton probably did a much better job with its SV models...

May be the auction should instead be accompanied by a monthly lucky draw or lottery. 1000 winners in each draw. Each winner gets a 25k MYR excise tax reduction voucher. Then 2.4 percent of the new car buyers can be happy, rather than all feeling cheated...

This post has been edited by hwt: Jan 22 2014, 05:30 PM

This bumis are the chosen bumis, where they are already rich. They dont care much bout others bumis welfare.

Complain, cry, boo, meroyan, protest, politikus

in the end , i read this sort of hypocritical reporting i give up on cheap cars in malaysia



http://paultan.org/2014/01/22/maa-2013/

Bahaya ko cakap camtu.

Nanti mamak berak dalam kari.

Ada aku kesah? I ald boycotted mamak Penang business since 2008 and I'm not the only one.

Since you suggested the amount is so minuscule, why not do away without it entirely?

Rafizi or rather PR plans to abolish the AP system entirely by 2015. Whereas looks like BN will keep it for a while longer.

Here, this article explains things better, why cars would be cheaper with an open auction of APs.

http://www.freemalaysiatoday.com/category/...z-on-ap-system/

Rafizi schools Mukhriz on AP system
G Vinod | September 14, 2012

The PKR strategic director explains to the deputy minister on how auctioning approved permits (Aps) to import cars can help slash car prices.

PETALING JAYA: International Trade and Industries Deputy Minister Mukhriz Mahathir seems genuinely oblivious on how auctioning Approved Permit (AP) to import cars can help reduce car prices, said PKR’s strategic director Rafizi Ramli today.

Yesterday, Mukhriz said he was baffled by Rafizi’s suggestion that auctioning AP would help reduce car prices.

“His logic really baffles me. On one hand, he says he wants to bring down car prices. On the other, he says we should auction APs.

“He hasn’t explained how to bring car prices down when [it is priced at] RM50,000 to RM60,000 per AP. So what does a [Toyota] Camry cost by the time he’s done with that?” he had said.

Rafizi, in an attempt to school Mukhriz on the matter, cited Petaling Jaya MP Tony Pua’s experience in purchasing a Nissan Juke for RM100,000, using the latter’s entitlement to an AP.

“Pua was lucky to have been able to buy the car at RM100,000. If he had bought it from a local car dealer, the price would have been RM160,000.

“The RM60,000 difference between buying from an importer and importing yourself (because you have an AP) is the impact of the opaque AP system which has pushed car prices very high,” he said.

In an auction process, Rafizi said Pua would have placed a bid, taking into consideration of the price he was willing to pay for the car.

“Pua may consider bidding up to RM40,000 for the AP, considering the car price is only worth RM45,000, excluding the taxes. So the car price would only cost RM85,000.

“This is the part that Mukhriz has failed to understand. Unknowingly, he has revealed his incompetence to the whole country,” he added.

However, the PKR leader said the real culprit that pushed car prices up were the taxes, especially the excise tax imposed on cars, as only 10% of the cars sold annually in Malaysia were brought in with APs.

Referring to Pua, Rafizi said the RM100,000 the DAP MP spent to purchase his Nissan was inclusive of the taxes.

“The price of the car, including shipping cost, is only worth RM45,000. The balance money is forked out to pay for the 85% excise tax, 10% sales tax and import tax of 30%,” he said.

2015 was already announced by the government in 2011. The earliest date of articles linking Rafizi and 2015 AP abolishment was 2012.

http://www.miti.gov.my/cms/content.jsp?id=...cc65cc-acf7f03d

Anyway, I do not think the government gets money from the current AP sales. It can remove APs immediately. I think its concern is who is going to fund the ventures of those AP sellers. They are going to ask for money from the government.

And people wonder why car price is not decreasing.

Saga SV for everyone. WUUUUHHUUUUUU!!!!!!

Yes, but you go see the first post of this thread lah. Seems the government is indecisive. And there are people lobbying the government to keep the APs.

Wow. So, the government doesn't get much money from the current AP sales. Why are we even having APs all this while?

Why are some people getting so much benefits at the expense of the car buying rakyat?

By the way, Rafizi and Pua probably left out something from the discussion of that Juke. The ASEAN Juke in Thailand is 80+k MYR. They should be able to buy a similar unit in Malaysia at a slightly higher price, without an AP. If this is higher than importing one from Japan themselves, then they should ask the dealer what they are paying for.

http://paultan.org/2013/11/26/nissan-juke-...iland-1-6l-cvt/

This post has been edited by hwt: Jan 22 2014, 10:17 PM

That aside, what's your take in all this? Do you want APs to be maintained? But you said APs don't earn the government much. So what's the rationale in keeping this AP system?

profit of it , put into trust fund aka zakat . see they burnnnnn

I am not an AP supporter. I only wanted to say they could buy an ASEAN Juke without paying for AP. In a way, this is to help make consumers make better purchase decisions. Don’t pay for unnecessary things. It is okay to stop some people from benefiting from APs unethically. But consumers should also be reminded they have a choice.

Eh? I mean earlier lah. When you first joined in the thread. Not even about the Juke yet.

Oh I see. My first post in this thread was just to say that abolishing APs would not make people happy. Subsequently I had to talk about the effect of not abolishing APs, but channelling the revenue to the government to reduce excise tax. If you ask what my stand is. Then I will say do whichever is preferred, but note that the benefit is marginal. Lastly, I mentioned that consumers often have a choice, which can save them more money.

This post has been edited by hwt: Jan 22 2014, 10:43 PM

why need AP's while the buyer still need

-duties
-sales tax
-puspakom inspection

another case of kroni Melayu makan Melayu...

and i hear from PEKEMA is...

"DON'T TAKE AWAY MY TONGKATZ!!"