Government’s decision to retain approved permit (AP) system a regressive move according to economists

Carmelo Ferlito of the Center for Market Education agreed, saying that abolishing the AP scheme would
create better competition and benefit consumers. “Removing APs will not (only) allow consumers to have access to more products at a more affordable price, but it will also create a competitive push for local producers, forcing them to improve on price and technology,” he said.

He noted that the government’s move to grant Tesla the exemption was undoubtedly aimed at furthering the country’s electrification efforts, but asked if it could have perhaps been done differently. “This is not wrong in principle, but I would have preferred (that a different mechanism be used such as imposing) different sales taxes, for example,” he said.

He said this was because the exemption gave the impression that preferential treatment was being given to a brand rather than for a product. “This may create an issue in the government’s relationship with other suppliers who have operated in Malaysia for a long time,” he said.

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