
As of January 2010, Open AP holders have had to pay RM10,000 for each Open AP that they receive. It was free before this, at least on paper. And Pekema (Association of Malay Importers and Traders of Motor Vehicles Malaysia) is not very happy with it.
Pekema’s Sabah branch argues that the RM10,000 charge is a burden to them as the economy is still weak and demand is down. “A charge of RM10,000 per unit makes the situation worse. I feel the rate of RM3,000 per unit will be more suitable,” said Pekema Sabah’s president Rozman Isli to a Bernama reporter. Rozman also added that the RM10,000 should only be paid when the car is registered using the Open AP and not when the car is imported in order to help AP holders with cash-flow.
The Open AP holders are already having it easy with import tax and excise duty. When an Open AP holder brings a car into Malaysia to be sold, they can just keep it in a Customs Department approved bonded warehouse facility. Only when there is a purchaser for the car, the car is taken out and then tax and duties are paid. This means there is significantly less need for start-up capital as the money from the sale is used to pay the tax and duties – no need to fork them out upfront. Now they want help for the RM10,000 charge too.
Business Times reports that MITI Minister Datuk Seri Mustapa Mohamed will be announcing something regarding all of this at a keynote speech on Wednesday at the Pekema AGM. Pekema has requested that the RM10,000 be dropped to RM5,000 (Pekema Sabah wants RM3,000 – so it’s a middle ground?)
“Do not forever depend on MITI over the issue of Approved Permits. Pekema should find alternative avenues of business opportunities. They should be grateful for what they have received and in turn look at diversifying their business. We need not extend assistance until the end of time. We have spoken about this often and they need to understand,” said Datuk Seri Mustapa.
Whatever happens between PEKEMA and the government, it’s very relevant to us as potential grey import buyers as undoubtedly some of that Open AP acquisition cost will be passed down to us.
Sources: StarBiz, Business Times, Bernama










