International News: Malaysia Studies Ban On Imported Used Auto Parts in 2011

Part of Malaysia’s proposed Motor Vehicle Development Program (MVDP) would ban the importation of most used cars, and all used auto parts.

The MVDP, which is designed to spur development of Malaysia’s auto industry has been given lukewarm reception by stakeholders, however. saying it lacks the impetus needed to make an investor pour in his capital to assemble new vehicle models in the country.

This developed as the Board of Investments (BoI), which administers the automotive program, presented the MVDP for public hearings.

“What we see in this MVDP is a council,” said Elizabeth H. Lee, president of the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI), reports the Manila Bulletin, referring to the proposed creation of the Automotive Industry Development Council as a policy making body of the industry attached to the BoI.

“This is all brotherhood statement,” said industry consultant Tony Jimenez.

“The secret of the success of Thailand’s automotive industry is a strong government policy support.

This MVDP lacks substance,” commented Angel Dimalanta, president of the Automotive Industry Workers Alliance.

Eddie Jose, chairman of Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP), has suggested “to shop” around the neighbouring countries for best practices and strategies that the program can consider adapting.

While significant portion of the MVDP focus on building investment and regulations, Article 3 of the proposed plan is entirely devoted to the prohibition on the importation of used motor vehicles. But, while Section 1 of Article 3 prohibits the importation into the country of all types of used motor vehicles, it also allows enough room for their entry.

Among its exceptions to this prohibition are the importation of used trucks and buses excluding pick –up trucks with GVW (gross vehicle weight) of 2.5 and up and buses with GVW of 6 and above. Special purpose vehicles as listed in Article 2 of EO 156 are also exempted.

Section 2 of Article 3 also provides that importation of used engines and parts and components for all motor vehicles shall be prohibited.

Players, however, find some cumbersome provisions under Article 3 that they would rather see a clear policy or an outright ban on the importation of used motor vehicles.