Malaysia continues keeping car import permits for non-ASEAN countries

Malaysia continues keeping car import permits for non-ASEAN countries

According to the statement made by the International Trade and Industry Minister, Malaysia decided to maintain its import permits for motor vehicles from non-ASEAN (Association of South East Asian Nations) countries for at least several more years. The country is expected to fully liberalize its automotive market in 2008. Import licensing through approved permits was introduced in 1970 to involve more Malaysian businessmen and companies in the auto sector. The consolidation policy will be continued for socio-economic reasons. It is reported that while there is a pressure to abolish the practice, the approved permits do not contravene World Trade Organization (WTO) rules as they are categorized as socio-economic measures. In 2004, Malaysia issued 46'831 approved permits. Most of these approved permits for cars imported from non-ASEAN countries. Approved permits are helping Malaysia control car imports. Moreover, the permits given by Malaysia each year do not surpass 10% of the total number of cars sold in a year. The approved permits for the cars imported from the non-ASEAN countries are still necessary for monitoring and data collection purposes. Malaysia is Southeast Asia's biggest car market with more than 400'000 units of vehicle sold each year and the sole country in the region that produces its own cars.