My question in Parliament on Monday 7 July 2008 was whether the Ministry of International Trade and Industry plans to abolish the Approved Permit (AP) for the import of cars as the use of the AP is not constistent with the requirements of the World Trade Organization (WTO). The Ministry’s reply to my question was that the WTO allows countries to impose control on trade based on requirements or specific interest. The Ministry went on to say that under the National Automotive Policy, the current AP System was still used to monitor and to gather data on the import of vehicles. I feel that the domestic automotive market should not be protected and that the government should allow the free flow of vehicles into the country. This will result in a wider choice of models for consumers and in the long run, will make the local automotive market more competitive. The continued use of APs will jeopardize the welfare and interests of consumers which will result in increased prices of vehicles.
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1 comment:
totally agree with the abolishment of AP. It is very sad to know that our government still does not recognised/understand the positive impact as a result of competition.
Competition can help promote a dynamic market and economic growth. Companies that are faced with vigorous competition are continually pressed to become more efficient and more productive. This will increase the quality of the product, be more innovative, while striving to provide better services and keeping the price at a competitive level.
Without competition, there would be little pressure to introduce new products or new production methods. Without this pressure, our economy will lag behind others as a center of innovation and will lose international competitiveness.
We should welcome competition and not shun them off, just to protect ourselves. What we have now (AP) is just like feeding your children with antibiotics even when they are not unwell, just to avoid them from getting sick. In the end, what you have are weak children who are unable to survive by themselves without antibiotics given to them.
Or are our goverment saying that Malaysia is not capable of taking on the international competition?
Frankly, there is no loser as a result of competition. Even if we do not end up No. 1, there is still knowledge to be gained.
Anyhow, this applies not only to the automobile industry, but in other areas as well.
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