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Dealers hit by Malaysia’s new automotive policy

New conditions under the National Automotive Policy (NAP) that makes mandatory inspection for vehicles above 15 years at Puspakom burdens used car dealers and affects their business, national news agency Bernama reported.

Many used car dealers and owners of cars over 15 years are frustrated with the government's move as it affects the lower income group.

The regulation, that comes into force on January 1 and will involve about a million vehicles, is among 18 new measures in the revised NAP to enhance the local automotive industry's competitiveness and make for safer, more environmental-friendly and technologically sound vehicles.

A used car dealer, Mohd Rizal Sabtu, characterised the government move as adversely affecting the industry besides burdening rural consumers given that the insurance rates had risen to 350 ringgit. (1$=3.5 ringgit)

"Now irrespective of the age of the vehicle the insurance is 350 ringgit. This is not third party but first party. The third party rate as I remember was done away in July. There is no more third party," he told Bernama.

Many owners of old used cars contacted also voiced frustration over the new conditions that would burden the lower-income group. The secretary of the oldskool.org club which has a membership of 4,000 made up of both owners and enthusiasts said what was more worrying was the ban on the import of used car spare parts in 18 months.

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