Government Scraps End-Of-Life Vehicle (ELV) Policy

True to Malaysia's flip-flop policy-making, the government has decided not to implement the planned end-of-life vehicle (ELV) policy, the first step of which is the mandatory annual comprehensive inspection for vehicles aged 15 years or older, before road taxes can be renewed. The ELV policy is of course one of the main thrusts in the recently announced National Automotive Policy (NAP) review.

But after receiving many complaints and negative feedback on this issue from the public, the International Trade and Industry Ministry (MITI) decided to withdraw the entire ELV policy, including the mandatory inspection. This move is definitely positive for Malaysians, especially those in the lower-income group who would face difficulties buying new cars to replace the scrapped ones, compounded by the fact that no proper rebate-for-scrappage scheme is in place.

As we see it, MITI must have received no less complaints regarding the other measures in the NAP review. And if the government is consistent, we should be seeing more changes soon. So, we are eagerly waiting for the lowering of duties and taxes on CKD and CBU vehicles, which will mean significantly cheaper cars. We are also hoping for the termination of both Franchise and Open AP system with immediate effect. And lastly, the import of used vehicles and automotive parts shall not be restricted. There you have it, our wish list.