FMCCAM President Dato’ Tony Khor: Used cars should not be listed as scrap metal Ministry of Home Affairs urged to simplify Second Hand Dealer’s Act and allow permit application directly with the Police.

PENANG (28 May 2023) : The President of the Federation of Motor & Credit Companies
Associations of Malaysia (FMCCAM), Dato’ Tony Khor has called on the Ministry of Home
Affairs to consider simplifying the procedures for issuing second-hand car dealer licenses
under the 1946 Used Goods Merchant Act. He also suggests that the eAuto system be directly
linked to the police, allowing second-hand car dealers to register with the police without the
need for physical applications.
“Currently, there are approximately 5,000 car dealerships involved in the buying and selling of
second-hand cars in our country. However, the number of dealerships that have successfully
registered with the police is less than 2,200, which is less than half of the total.”
He said that this is because under the current procedures, second-hand car dealers need
approvals from six government departments, including local government approval and
support. Second-hand car dealers often have to spend a long time to obtain approval or
support letters from local governments, which in turn affects the police’s decision to issue
licenses to them.
Dato’ Tony made these remarks during a dinner held the night before the 45th Annual General
Meeting of the Federation of Motor & Credit Companies Associations of Malaysia (FMCCAM).
Khor emphasized that second-hand car dealers sell automobiles, which are parked vehicles
and not waste or scrap metal. Furthermore, all second-hand cars have engine and chassis
numbers, and they should not be considered on par with scrap metal.
He stressed that second-hand car dealers do not have difficulty applying for licenses from the
police. The problem lies in local governments categorizing second-hand cars as waste or scrap,
making it difficult to obtain their approval and support, which subsequently affects the
procedure for obtaining licenses from the police.
In addition, Khor announced that the FMCCAM has officially signed a Memorandum of
Understanding (MoU) with CarSifu of Star Media Group, the largest media group in Malaysia.
This collaboration allows FMCCAM members to utilize Star Media Group’s existing advertising
platform, CarSifu, as a promotional channel for car dealers.
Khor pointed out that after collecting data, the FMCCAM realized that if second-hand car
dealers continue with traditional business methods in the face of IoT (Internet of Things) and
Industry 4.0, evolving customer preferences, and the increasing prominence of online
platforms, they will be phased out.
“Therefore, in 2018, the FMCCAM established ezAuto Asia electronic trading platform. In 2022,
we partnered with eAuto Gen to promote extended warranty programme for used cars, which
was well-received by customers. Customers who purchase cars from FMCCAM members are
guaranteed at least one year of vehicle warranty.”

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