Don’t Portray Malaysia as ‘Bad Boy’ in AFTA,’ says minister
Noting that there have been a number of reports on Malaysia’s delay in opening up its auto sector under AFTA and the country’s being portrayed as a ‘bad boy’ for delaying things, MITI minister Dato’ Seri Rafidah Aziz has offered some clarifications to set the record straight.
During her address at the signing ceremony between Inokom and Hyundai today, she said that it is wrong to say that there is a delay in opening up the entire auto sector of Malaysia because not everything is being deferred to January 1st 2005 (the date when Malaysia will open the sector under AFTA); there are only certain tariff lines which are being deferred to that date.
“Except for 218 tariff lines on CKD and CBU automobile products, other automotive products will be offered for tariff concessions in accordance with the AFTA schedule,” she explained. “These include tractors, ambulances and motorhomes as well as dumpers designed for off-highway use. Special-purpose vehicles, chassis and bodies, and parts and components also fall into the category which will receive tariff concessions.”
She said that, at present, 60% of auto parts and components made in the ASEAN region can already be imported at between 0 ~ 5% import duties – the rate which will be applied by all ASEAN countries under AFTA. The remaining 40% are subject to import duties of between 11 and 20%.
“In fact, there are already items which can be imported without duty and as outlined in the AFTA scheme, tariffs on all automotive parts and other automotive products will be reduced to between 0% and 5% by 2003. Malaysia will also follow this schedule,” she stressed.
“So please don’t give people the impression that Malaysia is the ‘bad boy’ in ASEAN by deferring opening of its auto sector for two years. We are only deferring some parts of the sector and not all of it,” she said.
