Inside MAM

Motorsports Categories
Over time it is the intention of MAM to offer a huge range of activities in many different categories of motor sport, ranging from club activities, motocross, speedway and junior go-karting to national championship series in all relevant disciplines of motor sport, cars and bikes alike.

The main categories (to be gradually implemented) are:
Cars:

• Go-karts
• Autocross, Drifting, Drag
• Road Touring Events and Club Sport
• Off-Road & Adventure
• Super Sprint and Rally Sprint
• Rally
• Open-wheel racing cars
• Touring Car Racing, non modified as well as modified (Racing)
  GT Car Racing
• Historic Motor Sport for Cars

Bikes:

• Motocross
• Trails
• Speedway
• Enduro
• Skilled Riding
• Road Racing
• Historic Motor Sport for Bikes

Duty & Tax Exemption

IMPORT DUTY EXCISE AND SALES TAX EXEMPTION FOR MOTOR SPORT

The Ministry of Finance and Ministry of International Trade and Industry has approved a duty and tax exempt scheme for vehicles (go karts, cars and bikes) used solely for the purpose of motor sport competition. The exempt scheme also includes part and components, tyres and safety apparel.

Motorsports Association of Malaysia (MAM) has been appointed by the Ministry of Finance as the governing body to manage the scheme and it will be introduced gradually over the coming months.

This is a service to the motor sport community which is not so simple to manage as it is time consuming in order to ensure compliance, but in line with MAM’s service minded philosophy we intend to create a “one-stop-shop” procedure where applicants only need to submit the paperwork to MAM, we will do the rest.

DUTY & TAX EXEMPTION – QUICK OVERVIEW ON HOW IT WORKS

Anyone seeking exemptions should apply to MAM for endorsement. MAM will then process the application and obtain the necessary permits from the relevant government agencies. All paperwork must be in order prior to import.

• Compliance with the scheme to be administered by way of a Motor Sport Vehicle Log Book and a computerised database.
• Go karts and motor cycles built purely for competition will not require vehicle log book as they cannot be used on the road in any case.
• Vehicles can only be imported for competition purposes and can never be registered for road use so as not to create any issues/abuse of the AP system.
• Exempt spare parts can only be imported by the competitor using them. General keeping of exempt parts for sale over the counter is not allowed save for competition tyres and parts for go karts and certain bikes.
• MAM will make arrangements with tyre importers and importers of safety gear on how to administer sales and compliance if stock is kept in Malaysia.
• Only licensed competitors/teams and approved racing schools qualify for the exempt scheme.
• If non-compliance is discovered, Log Book may be revoked which will trigger that full duty/excise and sales tax must be paid. It could also result in substantial fines and confiscation of vehicles and parts.
• MAM have the technical expertise to monitor compliance, including officials at events who can monitor and report.

DUTY & TAX EXEMPTION – MORE DETAILED EXPLANATIONS

Vehicles

Under the scheme new and second hand vehicles can be imported and further modified or rebuilt in Malaysia but they can never be registered for private use so as not to create any abuse of the current AP system.

Locally built vehicles are also exempt from excise duty and sales tax as are locally manufactured parts, tyres and safety apparel.

The scheme is strictly for vehicles which are used solely for motor sport competition. Vehicles which are for daily use also will not qualify.

Rally cars and other off-road vehicles, if they are only used for competition but have to drive on the road (transport stages) in conjunction with events, are eligible as well. MAM are currently working out the registration requirements with JPJ. The compliance will be very strict and while some road testing may be allowed it will be strictly limited. The vehicle registration arrangements and conditions will be made known shortly.

Competitors and Teams will only be granted exempt permits if MAM is satisfied that vehicles and parts are strictly for competition. Importation of vehicles for non existing competition series will not be allowed.

Most vehicles must have a Motor Sport Vehicle Log Book which MAM will issue. The MSV Log Book is the key element governing the scheme as it will clearly identify the vehicle. All Log Book entries will be entered in a computerised data-base allowing for extensive monitoring to ensure compliance. The MSV Log Book will cost between RM200 and RM500.

Exempt vehicles can only be imported by competitors holding a Competition Licence or a Team holding an Entrants Licence issued by MAM. General import for later sale is not allowed.

General Exemptions, Go Karts, Bikes, Tyres and Safety Apparel

Go karts, mini bikes, motocross bikes and certain other bikes will not need a MSV Log Book as they cannot be used for anything but motor sport competition. Bikes which can be potentially used on the road will require a MSV Log Book.

Tyres and safety apparel also enjoy general exemption.

Importers and local manufacturers are allowed to import and sell the above items duty/excise/sales tax free directly to competitors and teams holding valid MAM licenses without the competitors and/or teams first obtaining an exempt permit from MAM. The Sellers will report the sale to MAM monthly. Companies wishing to sell the items must first obtain approval from MAM to do so. Approved companies must enter into an agreement with MAM for the operation and compliance with the scheme.

Components and Spare Parts

Only competitors and teams are allowed to import components and parts for their own use. No importation for sale over the counter is allowed. This is simply to ensure compliance. MAM will closely monitor that components and parts are used for their intended purpose and not sold for use in private vehicles. Competitors also using their vehicles for private use will not qualify for exemption.

If you own a vehicle which is already used for competition, with or without duty and taxes paid, it will still qualify under the scheme provided that it is used for competition only. For example, a competitor owning an older road registered rally car which is only used for competition (and not as a private car whatsoever) will be allowed to import parts and components or purchase locally manufactured parts and components duty/tax free. However, a MSV Log Book must first be obtained from MAM.

COMPLIANCE

The Ministry of Finance and Ministry of International Trade and Industry can revoke the scheme anytime if it is abused. Therefore MAM will have very strict procedures in place. That is why it is necessary to have a MSV Log Book for vehicles which potentially could find their way onto the road. The vehicle will be clearly identified in the Log Book and certain tracing methods will be used.

Components and spare parts for such vehicles could also potentially find their way to places where they shouldn’t. Therefore all purchases will be recorded in the Log Book as a means of monitoring parts consumption.

The consequences of being caught are very severe. Not only will all duties and taxes have to be paid, there will also be huge fines. Vehicles and parts may also be confiscated.

The severity of the consequences is, of course, nothing to worry about if you do the right thing and play by the rules.

Affiliation
Motor Sport Clubs, Competitors, Promoters, Circuits, Entrants, Companies and Individuals operating within the sport are invited to affiliate with MAM. MAM has been formed with the purpose of providing much needed growth to the sport and help to establish Malaysia as the motor sport hub of South East Asia.

By becoming an affiliate, Members automatically subscribe to the Constitution of MAM (Memorandum and Articles of Association) and are thereby bound by the rules governing the sport under MAM’ s auspices.

Affiliates will be invited to attend seminars and workshops which will be held with regular intervals in strategic places throughout Malaysia. Affiliation with MAM also means inclusion in MAM’s comprehensive insurance program.

Being affiliated with MAM does not prevent Clubs and Competitors from being affiliated with the AAM. Similarly, officials who officiate for AAM will also be eligible to take part in MAM sanctioned events.

Competitors holding current AAM licences will be entitled to enter MAM sanctioned events without having to first obtain a MAM competition licence, subject to MAM being satisfied that competitors posses the appropriate skills and familiarity with MAM rules and regulations.

 

MOTOR SPORT CLUBS
Thinking of starting a Club?

Groups of people who would like to form a Club will be offered assistance to form register and establish a new Club.

Existing clubs can also join

For those Clubs having been inactive for some period of time or never having organised any motor sport events since formation, MAM are willing to assist and guide these Clubs to organise and promote their activities and events. The level of assistance will be discussed on a case-by-case basis.

 

Associate Members

Any commercial entity operating within motor sport such as Event Organisers, Entrants, Promoters, Manufactures, Suppliers and Sponsors are welcome to affiliate with MAM. Event Organisers can obtain Event Permits directly from MAM and are entitled to the same administration support as clubs and competitors, including access to MAM’s judicial system.

Entrant Licence included – teams or anybody else for that matter, who are registered as commercial affiliates can get an Entrant Licence free of charge, just ask MAM.

MAM may also enter into category management agreements with competent event organisers to manage competition series with a high level of autonomy. This will give them more freedom to operate provided that certain compliance requirements are met, especially in relation to safety.

Event Permit
Every event held under the auspices of MAM must have an approved Event Permit which carries appropriate public liability insurance.

There is no calendar inscription fee payable to MAM. Permit applications should be submitted no later than 14 days prior to the event. MAM may refuse to issue a permit if, in MAM’s opinion there is not sufficient time to review and approve regulations and allocate officials, therefore submit permit application and other documentation as early as possible.

MAM has created a “less hassle one-stop” procedure for event organisers and promoters. In most cases, typically for the lower-level events the total cost is the permit fee with no more to pay.

Note: Some more complex events may require additional MAM officials or specific track/course inspection in which case an additional fee will apply. Please check with MAM’s office.

Competition Licence
BECOMING A COMPETITOR
You are entitled to compete in any national competition organised or approved by MAM or Automobile Association of Malaysia (AAM) if you hold a valid competition licence. To be a competitor you will need to register and submit your particulars to MAM in order to obtain a licence.

As of April 1, 2008 with the approval of the newly established Malaysian Motorsports Council (“MMC”), MAM has started to issue the Common AAM/MAM National Competition Licence. Competitors that hold a valid competition licence from either the AAM/MAM National Competition Licence or the AAM licence are eligible to take part in any events sanctioned by AAM or supported by MAM.

A single electronic register for common licences has been developed by MAM. MAM is licensed by AAM to administer the issuing of all National Competition Licences for Malaysian. All foreign competitors that wish to take the National Competition Licence will be issued by AAM. All FIA/FIM/CIK International Competition licences will continue to be issued by AAM.

Licence on the spot
For many events you can even obtain your Clubman Licence when you register at the event itself. You can also download application form from our website and send it to us or you can hand the completed form and licence fee to any event secretary at the event you want to take part in and you are ready to compete – it is that easy.

Come n’ try Licence
To give first-time competitors a chance to test whether motor sport is for them, all they need to do is to buy a “Come n’ try Licence” It is available from the event organiser at a cost of only 10 Ringgit and it is valid for one event. Note: this licence type is only valid for certain entry level events.

For several events, especially multi-start events where you compete “wheel to wheel” you will need to take part in observed licence tests and in some cases also lectures which may be in the form of accredited racing schools and special events organised by MAM. For certain types of licences, you are also required to undergo a medical examination by a general practitioner (doctor).

MAM will organise tests together with clubs and event organisers from time to time. Always remember to check licence requirements for the events you want to participate in.

Note: Each event may have different licence grade requirements. Always check the event regulations to see if you have the minimum licence grade required