The Malaysia Automotive Institute (MAI) has said that the review on the impact of the abolishment of the Open Approved Permit (Open AP) system should be completed this year, The Sun Daily reports.
“It is still under review. It (completion of the review) must be this year. It cannot be so long,” the publication quoted MAI CEO Madani Sahari as saying.
MAI is in favour of terminating the Open AP system. The system was supposed to be abolished by the end of 2015 under the National Automotive Policy (NAP) 2009.
During the presentation of NAP 2014 however, the Ministry of International Trade and Industry (MITI) said further study on the impact of the abolishment was needed before a final decision was made.
MAI head of strategic research Asrulnizam Addrus earlier said that Open APs do not contribute to the development of the automotive industry.
He said the review on the impact of the Open AP system’s termination is being carried out by external consultants, which does not include MAI. However, MITI is aware of MAI’s position on the Open AP system, Asrulnizam said.
Open APs are responsible for the many grey-import cars from right-hand drive countries on our roads. They are distinct from Franchise APs, which are used by principal companies to officially bring in their cars.
Further reading:
How come I have a strong feeling that AP system will remain after the conclusion of the study.
Tun ‘Father of AP system’ still alive, think he will make his subordinate to continue this LOUSY system.
Excuse like “need Gov support if not my Proton will die”
Actually Dr. M is the one criticising the Open AP, having said it has failed and only profits a few (d’uh). But if that is enough to abolish it? I don’t think so.
Conclusions:
Tidak dapat, dan tidak boleh.
Impak tersangat dan terlalu besar.
Keempat-empat kaki kerusi saya akan patah.
A show only, to show to rakyats.
Asrulnizam Addrus, this all drama by MAI. We know, nothing will happen. MAI love to do this. Come out with analysis and charts, but nothing will be done. Remember MAI is the Government and the Government is MAI. So, it is a drama for the rakyat.
It is solely because of Mahathir and his AP kawan kawan that for 30 years, 30 million people in Malaysia suffer. Everybody’s biggest payment per month is their cars as we are paying overpriced cars.
You see, in the 80s or even in the early 90s, you can get a brand new Nissan 130Y or a Toyota Corolla for RM20,000. Now, the same car is RM139,000.
In truth, the past 30 years, car prices have come down a lot globally and have NOT gone up due to inflation. It has come down due to economies of scale achieved by car companies. This is proven by the fact that you can get a brand new purely Japan made top spec Toyota Camry 2.5 with 9 airbags in the US for US$22,000. That is about RM60,000. The normal B segment car like the Almera is sold in the US for US$9,999. (RM30,000). Mind you, this is after Toyota and Nissan of the US has made their margin and profits and the US government has collected taxes and duties from Nissan and Toyota. The direct from factory prices is far cheaper. UMW will get the above 2.5 Camry for US$15,000 from their principal in Japan. As our Camry is CKD, the price is even lower than that.
So, in actual fact, most Malaysians can enjoy cheap and reasonable cars but because of AP and Mahathir, all the other car prices have been raised up tremendously to protect Proton and Mahathir’s AP cronies.
Malaysians have already suffered so much. For 30 years, 30 million people suffer so much. We struggle paying for our high car prices all because of one man’s dream of benefiting his friends and relatives through the AP system.
The AP system also cost us hundreds of billions in ringgit in investments from car companies who moved to Thailand and Indonesia. Car companies got fed up with Malaysia’s MITI for protecting Proton and telling other companies what to price their cars. They got sick and tired of the AP system and how genuine brands cannot get enough APs to import their cars in (like Mercedes, BMW and Honda).
They thought that if they set up their brands and plants in Malaysia, they knew they had to share the pool of APs with the cronies and they knew 90% of all APs go to the cronies. They all moved their operations to Thailand making it the AutoCity of the world.
Recently GM announced that they rolled out already 1 million cars from Thailand. Imagine if GM was in Malaysia and we taxed GM RM10,000 per car. Calculate that with 1 million cars. Just from GM alone, we lost Billions in USD. Imagine what will the amount be from other car companies if they had set up in Malaysia?
Because of Mahathir and his AP system, we lost hundreds of billion of ringgit in investment and trillions of ringgit from jobs lost. If Malaysia was the autocity of Asia, hundreds of thousands of jobs would have been created for Malaysians. We lost all that. Trillions of Ringgit and hundreds of thousands of jobs. Now, Thailand is benefiting from this trillions lost.
So, in summary, the 30 PEKEMA members have solely caused Malaysia to lose trillions in investments. What have they done? Nothing.
The AP companies also don’t employ many people.
Yes you read it clearly. Only about 10 people working. That includes the 4 Bangladeshi guys whose job is to wash the cars.
Go around KL and Jalan Genting Klang and see, all the AP cronies have hardly 10 people working for them each (including non bumi boss, non bumi salesman and secretary).
Remember one thing, other than Naza, each AP company have hardly 10 people working. So, if you do the maths, about 30 AP companies x 10 people = 300 people.
Government is protecting 300 people vs 30 million Malaysians suffer?
No need to wait end of this year. Look at this as a crime. Abolish it today itself. Abolish the AP system now. It is causing too much hardships on the 30 million Malaysians!
Where are the big liars from BMW ie from the CEO to the salesman? From the days of the E60 530d, BMW Malaysia, including its CEO and useless sales people have been promising buyers that clean diesel was around the corner. They assured us, around the corner meant in a years time.
That was E60 days. Then F10 (520d and 320d) came and again, the CEO and all the pariah sales people again lied lied lied to customers and told them, 520d and 320d was an excellent buy. Again, the ASSURED customers clean diesel was coming soon.
Now see, already over 10 years passed. No clean diesel. BMW and its entire management team have no balls to tell the government to move to clean diesel.
Now, all diesel buyers in Malaysia should start a class action suit against BMW Malaysia and Sime Darby. The company misrepresented to buyers that cleaner fuel was around the corner.
Most BMW diesel buyers bough their diesel based on the promise that clean diesel was coming soon. (2001 promise) This is entirely a misrepresentation.
BMW diesel buyers have now suffered depreciation on their diesel cars cause nobody wants to buy them. their engines a clogged and filthy.
Never ever trust BMW Malaysia, their Efficient Dynamics bullshit and their lies about clean diesel. BMW Malaysia is Sime Darby. Sime Darby is the Government. So, BMW Malaysia can make things to happen if they want to!
” Kong Lai ! Kong Ki ! Tin Kong Kong Nia ” – They won’t simply give up this AP Stuff – Easy Money lor … Who don’t want – especially sucking so many years – They won’t let go this AP Project’s !
dude kinda disagree with you. if i remember correctly, BMW had several times urged the government to use better diesel in order to allow more world class engines to enter malaysian markets, but in vain. we all know why: proton cannot make diesel engine, and diesel is much cheaper than petrol, and more saving, meaning petronas will sell less oil
Dude, you are barking at the wrong tree.
If the Govn refuse, there is nothing BMW can do to change that.
BMW Malaysia sells cars, it is not a component party in BN. Simple as that.
Simply said, enough is enough…
all issues need minimum of 2 parties to happen. in this exorbitant price car issue, there is at least 4 parties, the G, banks, distributors and the buyer. it is pretty obvious the G, bank and distributors need to make $$$ from the buyer and mostly probably they work together behind the scene to make exorbitantly priced car “affordable”. so the obvious is policy changed to giving 7 to 9 years loan from the conventional 5 years. Unfortunately in this boleh land, many want to look good regardless.
Automotive industry is a high cost business, a single month or quarter drop in sales is enough to panic. I don’t mean expecting people to ride a motorbike instead of a car. Is changing a new Mazda CX5 necessary when you have a 5 years old Honda Insight? Does one need a Ford Fiesta to commute 10mins between home and work daily when the family already has a D segment car?
I use to blame the G for the high tax. Then I realize the distributor could be overcharging seeing how CKD is being priced (may be price control by MITI). Now I also believe (thanks to our minister to enlighten me) that the people is also in fault.
“HARGA KERETA MAHAL PASAL RAKYAK”
Pls poll and rate.
Thumb up! – Abolish AP immediately
Thumb down – Protect National car.
Without AP, Malaysia can achieve higher GDP!
Gragantia,the AP system will be EVERLASTING cos PERLINDUNGAN is a cancer as well as a narcotic to get supporters hooked.
It can get” socalled” abolished but will reemerge in another form.
Their favourite escape answer is “Kami akan memantau”. Akan means belum .
Tell me how to abolish a system where thousands of diehard cucu,menantu,pak cik makcik all hooked up to this ‘gold mine”?
It is like drug, once you addicted, you can’t get rid easily.
AP is easy money coming out from nowhere. Why government/cronies will let it go?
Unless pilihanraya coming…
Same Lorr,thanks for your truthful assessment but I must remind you that even with regime change,another more “dignified and toned down “form of AP may emerge.
Perlindungan has crept into almost every sector of society.
Lots of supporters will get nervous breakdown if this perlindungan system is scraped.LIke you said,it is not “like drug” but is actually a “drug”.
OMG…review apa lagi WTF…just Yes or No only. Puihh…
man congrates you have the first ever 100% likes! paul got give u any hadiah or not? :D
Most likely AP is to stay. It is done for syiok sendiri. at most only some permits are abolish.
During their discussion, most likely it’ll be:
“Ini AP holder ada support PKR. Ini kasi abolish.”
“Ini holder ada support DAP. Kasi abolish and ban.”
“Ini holder pulak macam lalang. tak tau party mana dia support. Ini kasi KIV on review dulu.”
Stop talking. Do it ASAP.
If they really abolish AP, I’ll give my first 100k LIKE to Govt for my first time.
No need to wait. I can tell you the results already. Cannot abolish, cause it would hurt second hand car dealers, recon car dealers, bla bla bla.
It’ll definitely hurt those getting the free hand-outs all these years, therefore can’t abolish bla bla bla.
Don’t get me started on this! This whole AP system is a plague to our economy. A cancer to our life! Just abolish it! Study your balls!!!WTF!
All for show only. Pretty sure it’ll be status quo and all the AP kings continue to reap in obscene profits
For a few to live filthy rich, all Malaysians have to suffer.
With or without AP, Proton won’t be affected. Proton’s build quality taint its own reputation, not Toyota/Honda/Kia/Ford/BMW/Mercedes….
Agree! Do it ASAP
whats in it for us once is abolished? someone pls explain to me
without open AP, we will not be getting 2nd hand Estima / Alphard and things like that anymore. Franchise AP holder will be a sole importer / distributor of certain brands and models.. Franchise AP usually will only bring brand new car.
However, I think both open and franchise AP should be abolished. AP holders have been making money out of nothing for so many years. gov could abolish AP to reduce the car price as what they promised but still earn from import / excise tax.
Open AP yes making money but not Franchise AP..AP king/PEKEMA is using Open AP..
Not necessarily. It could also be that without this, anyone can bring in any car. I think franchise APs would also have to be abolished in that case. Which wouldn’t be so bad, then there is no limit as to how many cars a car maker can produce and sell. I believe Toyota claimed they were unable to sell more hybrids or so because they didn’t have enough franchise APs. If that happens they will have to buy from open AP holder…
In any case it should mean cheaper cars and maybe more variety.
Franchise AP has no limit for official distributor or maker…Open AP depend on 10% TIV of previous yr eg TIV 1million OAP 100k…that y Franchise is different from OAP..impossible toyota get not enough AP since their main seller do not need AP..vios n camry both made in boleh.
i read somewhere before, total AP is 10% for both open and franchise AP combined. currently open AP is about 6% and franchise 4%. total AP is about 15,000.
AP = AngPau from the gomen to the cronies.
Money falling down from the sky to the cronies families, we only have rain or haze from the sky, what the Fcxk.
whats in it for us once is abolished? someone pls explain to me
read last paragraph..
Throughout these numerous, time consuming meetings, we have concluded that we catering service was not up to standard and future catering contracts will be awarded to this company……not related to me…..yes yes…. It is runned by my cousin’s wife-in law…..but not related to me….
Nothing to be surprised. At the end still has no intend to abolish AP.
yes terminate the AP than replace with other name and term.
After expensive review of our review, we have decided the AP system cannot be abolished because it will affect the livelihood of maybe 10-20 people involved in this industry, therefore we gonna review it again.
This time the review will take few more years to complete, then we shall review againu
Biar rakyat susah, janji pemegang AP hidup senang.
I bet it won’t be abolished.. Wasting our time & taxpayers’ money for the reports. Yawn….
No one would dare to bet even the odds are one thousand to one if the AP would be abolished.
Yaya….take 4mths to find excuses to call off or to long-delay Abolishment….?
Dont Remove AP.
Reduce the Car price.
Once Car Price Drop, AP dont survive.
u remove AP and let the car price sell so expensive.
Malaysia Goverment is torturing us.
Where is 30% car price Dropped???
reduce price will not kill Open AP holder since they import car that are not available with official distributor or manufacturer n they import recond car.
Without AP, car prices will go down too. And at least taxes and duties go to the government, and a part of it is used on providing subsidised fuel, hospitals, education, … things that benefit the people. 100% of AP money goes into the pockets of a few lucky rich people who don’t do anything for the people, or anything to earn that money in the first place.
If remove the car AP (2 billion), Sugar AP (1 billion, rice AP (1 billion), Astro AP (1 billion), TNB AP/subsidies (2 billion)….etc. Malaysia can save few billion and no need to impose the GST.
They are studying the impact on the cronies rather than the 2nd class bumip………. and 3 rd class rakyat.
remove old AP. implement new system similar to AP which benefits crony even more. beribu ribu tahniah.
PEKIMA WILL RAGE.LEL
Review end of the year? YES ….. Next year can proceed to re-review stage which going to take 8 years before re-re-review stage.
i have more hope cows can give birth to monkeys than resolving this AP bs…
Another Balls story…..
It will forever be review a.k.a analyse only – No further action. Don’t expect them to throw away their cash cow
Cannot remove the tongkak to all those that are living the lifestyle of driving in Ferraris and Lamborghinis… removing the tongkak system will affect their income and jeopardize their livelihood… all Malaysians (29.5 million) are supporting the 200 elite group of people living off the blood, tears and sweat of the whole nation… think of the elite group of businessmen’s family, how can they feed their children, maids, supercars fuel tank if no tongkak??
Study concludes: rich crony impacted. Abolishment deferred indefinitely until the country’s sucked dry.
please dont generalise this ap to bumi, seem the very few whom gets it is holding on to it
despite already millionaires or even billionairea. they hold those ap as if their birth rights even after death.
Hello Paultan, how do I know the original mileage of a recon cars? I go through mudah and found mostly 5-30k km for all recond car.
Second question is, a recon cars mean the mileage is resetted or since recond mean the car is reconditioned, then we only can know the after reconditioned mileage where the real one is hidden?Quite confusing -_- I’m just curious is it Japanese just drive their cars for 30k km or below then sell it off?
driving car is very costly in Japan, not the car price but due to regulations and premium land space to rent for parking and so on. so, majority could be only driving to train station before taking the train to the city, hence the low mileage.
Mandatory inspections are required when a car turns 3 years old, then every 2 years until the car turns 11, then every year. The inspections, which cover more than 100 items from brake function to headlight orientation, are done by a Government test center or by an authorized service station, something like Puspakom here. You need every single part to function properly otherwise you’ll fail the test. so most people will change to new car rather than going for costly repair and inspection, because new car is cheap in japan. more than 50% cars in japan is less than 5 years old. in a way, they keep the demand high and car production continues… and only 1 in 2,000 car accidents in Japan were caused by mechanical failure due to this mandatory inspection system.
Paul got limitation to reply ur question.
The answer is simple! YES, ADJUSTED.
Japan like malaysia, got city, got kampung area.
The mileage for 3-5 years “RECON” car average is 60-80k mileage at minimum.
thank you gobermen! you benefit us PUKIMA members!
Impact? The only impact is u and ur cronies saudara-saudari will burthurt as their pocket money will reduce. No idea why we must pay so much to the G. Sometimes dont blame us that we avoid being tax. No point paying so much but we are treated like dirt. The quote:” dont think what the G can do for you, think what can you contribute to the country” just dont seem to apply here as ruling party nvr treat us like world class citizen.
Corrupttttt!!!!!!!