Malaysia to soonrevamp car import permit policy

Malaysia to soonrevamp car import permit policy

Associated Press, Kuala Lumpur

Malaysia will soon revamp its system of awarding car import licenses amid criticism that it favors well-connected businessmen, a news report said on Saturday.

The import permits were meant to help enterprising but poor ethnic Malays, who have traditionally lagged economically behind the country's minority Chinese population.

But accusations that the International Trade and Industry Ministry has awarded permits to the well-connected elite have prompted the government to plan a revamp of the system, the New Straits Times newspaper reported, citing unidentified government and auto industry officials.

The changes, to be announced later this month, will likely include surprise audits of companies that receive permits in order to ensure transparency, the paper reported.

The issue heated up over the past week following media reports that the government's Anti-Corruption Agency has begun investigations into how the ministry issued the permits.

Critics say the decades-old system has failed to help ethnic Malays.

Trade Minister Rafidah Aziz has denied any wrongdoing, but she skipped a Cabinet meeting last Wednesday, fueling speculation that she may soon lose the post she has held since 1987. Her ministry said she was on a weeklong medical leave.

The controversy began last month after former Prime Minister Mahathir Mohamad questioned the permit policy, and accused Rafidah of issuing the licenses indiscriminately.

Mahathir said the increasing influx of foreign cars is hurting the national car Proton, of which he is the adviser.

By law, the government is not obliged to reveal the names of permit holders, but it did make public the list of recipients for 2004 and 2005 in response to Mahathir's criticism.

The list showed that four businessmen -- of which two are former senior officials who served under Rafidah -- received more than 28,000 of the 67,158 permits issued this year alone.