NATIONAL AUTOMOTIVE POLICY - REVIEW

The Najib administration announced a review on the NAP recently. As expected the car tariffs are maintained but the decision to allow 100% ownership on foreign makes to open manufacturing facilities in Malaysia is unexpected. Maybe it would be better if the government impose a 65% local contents on these foreign car companies. Of course the engine and chassis must come CBU from the originating country. This manufacturing license is limited to luxury cars and motorbikes, hybrid and electric vehicles, pick ups trucks and commercial vehicles.

I have no comment on the ban of used automotive parts but the termination of AP (Approved Permit) to import vehicles by 2020 is long overdue.

My biggest worry is the year 2017 when my Perodua Kancil will be 15 years old. The new rule requires vehicles more than 15 years old be scraped or be subject to 100% inspection before a new road tax is given. This rule was imposed previously for commercial vehicles but accidents are still rampant. The government must provide better amenities for car owners so that this rule of scrapping 15 year old vehicles will not become a headache not only to the authorities but also to the car owners.

One thing which this review overlooked is the accident claims by car owners from the insurance companies. Contrary to Canada, a vehicle in Malaysia must be insured to get it on the road. As for my younger brother's car, his car accident claim with Uni Asia General Insurance has been 6 weeks now.The last time he talked to the workshop, the adjuster just came by and looked. My goodness the adjuster was so slow. In 1990 it took me a month to get my late father's car repaired by the workshop after my car crash December 2, 1990. Bear in mind in 1990 internet is known only in the land of uncle Sam. THERE must be a law for insurance companies to speed up accident claims.

Whether this revised NAP will be a boost to the Malaysian auto industry is too early to predict. But with Ford posing a profit despite GMACs appetite for more American tax payers money my instinct says we are on the RIGHT direction.