It was announced by the Malaysian government back in December last year that the Open Approved Permit (AP) policy is here to stay, but with various improvements to the system to be introduced in 2017. The Ministry of International Trade and Industry (MITI) has now detailed the new rule changes.
The new policy covers the rules and regulations plus the basic requirements needed for a company to be a legal Open AP holder. The application procedure, plus actions to those who go against the rules have also been detailed.
Among the requirements for a company be an Open AP holder are:
- A Sdn Bhd company with a 100% Bumiputera status. All company shares have to be owned by Bumiputeras. All company board members, along with key posts within the company have to be held by Bumiputeras. Current AP holders will have to reapply.
- Company to have a minimum of two years’ experience in the field of sales and distribution of automobiles (cars, bikes or commercial vehicles), which is still operational.
- Have access to a suitable office space or showroom.
- Have the capability of handling the financial requirements of an automobile import, distribution and sales business, and a minimum capital of RM1 million.
Applications for AP holder companies will be open from May 23 to June 21, 2016. Each application will be reviewed by an independent audit firm, according to MITI. The application process will be open again in the following years.
The objectives of the new Open AP policy include: to provide car buyers with more options at more competitive prices; to empower the Bumiputera economic agenda, giving equal opportunities to Bumiputera businesses to be involved in the automotive sector; to ensure the Open AP policy’s socio-economic contribution is not affected.
Refer to the document below for the full revised Open AP Policy in Malaysia.
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Dumb MITI. why fix something which ain’t broken
“A Sdn Bhd company with a 100% Bumiputera status.”
That says it all
“A Sdn Bhd company with a 100% Bumiputera status. All company shares have to be owned by Bumiputeras. All company board members, along with key posts within the company have to be held by Bumiputeras.”
Is this really fair and reflective of a democratic country? Is that a sign of admitting that you’re weak when accepting such ‘privileges’ and are you afraid of open competition? Food for thoughts.
http://sp.beforward.jp/toyota/alphard/bf519819/id/631179 *Where is competitives price? Those luxury minivan 10~15yrs old alphard/vellfire only cost $1369/RM5500 only, the highest $6500/RM26000. This is the damaga cost to the everall Msia Auto industry and make the used vehicle price (suppose used vehicle to be cheaper for low income). At the end, still the poor will suffer.
Cakap apa demokrasi, hak sama rata, 1 rakyat 1 Malaysia. All bullocks. In the end still kepentingan Bumiputera diutamakan, still stone age mindset. Negara ni macam mana mau maju? Macam mana mau capai Wawasan 2020?
If you are talking about Alphard/Vellfire, obviously you are NOT talking on behalf of the ‘poor’.
P1 is the source of AP system. No protection, no AP. Nuff said
Very obvious… they r not after the interest of Rakyat or bumiputera….they just set a rules to protect the interest of certain group!
I was told that in Islam…. they r not allow to discriminate others races or religion. In bolehlah, the government did all those….in a name of halal
No AP, no happy, no votes for Najib, BN topples, Proton close shop
Democraticy is not equality
No, it’s not in Malaysia
Fair and reflective of a democratic country?
Sir, are you new in Malaysia?
WTF is 1Malaysia?
This is 21st century, heck 2020 is approaching but still crying out to the government for crutches. Seriously, don’t you feel embarrassed? These kind of ‘privileges’ make them weak, laid back, incompetent. Many private companies, both local and overseas, refuse to hire them.
Do yourself a favour and let go of these outright discriminatory, unjust ‘privileges’. It’s fair not just for those being discriminated, but most importantly, to train your next generation to be independent and highly competent.
Nasib baik i already bought my full spec vellfire at good price.
2010 Vellfire is below 150K now. Soon…it will further jump to 130K region.
Pls add this rule……all Bumi company earning more than Rm 30 million annualy cannot apply. So that a greater number of needy bumi company get a leg up. Instead of those conglomerate bumi company. That was the original intention of AP system.
All justice loving Malaysian, please do not be angered by this news. The non-bumi and non-crony bumi are more successful and tough because of this kind of policy. We should thank them for making us strong to succeed in any place in the world. Just look at Robert Kuok, Jimmy Choo, Tan Sri Hassan Merican, and so much more. Malaysia is a training ground for the most successful people around the world.
P.s.: it’s just AP for cars, mainly second hand, nothing to be proud off. And see those APed outdated unsolded model lining up at those Bumi Crony dealership say it all.
Read between the lines. These requirements just only an excuses to keep on using this AP system. How many Bumi’s company with 100% share can involve in this business other then the existing players. If want to provide people with better car, just abolish the AP system la wei..
Adding on “minimum capital of RM1 million”… Okay, not exactly new
The new regulations just look to me like officially sanctioned approval to continue pretty much as-is with crony abuse of power in the car import business.
Even though I am against ride sharing apps, the AP system is the backbone of our industry and we must support the government. I have kids in UK and Australia to feed. Help us.
This is demand and supply matter then don’t buy recond car lah
Haha.. Right on.. Had the same thought when I read thru it..
certainly race,need these kinda affirmative action,they maybe proud of enjoy it,we know better its just another name for OKU status
If u don’t support Open AP don’t buy recond car or gray import car.. Buy car through official channel eg Honda Malaysia, UMW Toyota, MBM etc.
See this is how our government teach their people , if you don’t like our PM they you don’t stay in Malaysia la
Exactly that’s what I do, I don’t buy recond cars for that reason and you are totally at their mercy when the car breaks down and no warranty at all. If you can afford a premium car buy from authorized channels with warranties that give you peace of mind.
Ain’t broken? You must be a kroni/kronik.
MITI should publish/make public which companies got the APs to show that it is transparent.
Need 2 years of experience before applying AP, but how to have experience selling without AP in the first place?
First learn to to be a crony
Its 2 years in automobile sales, not just AP. Dealership for example.
MACC & LHDN should be the one of the approval committee panel members.
Translated as “Need to have experience selling P1/P2 cars.”
Sound like no more new AP holder in near future. This country no more hope already.
“The objectives of the new Open AP policy include: to provide car buyers with more options at more competitive prices”
I thot AP increase the price not making the price more competitive ?
More BS from BN
So if the opposition take over, guaranteed no more APs?
Guaranty no more loan to crony company Proton
Daniel, AP has got nothing to do with P1 or P2. Please do your homework.
Without protection of P1, you think there will be AP system?
to empower the Bumiputera economic agenda?!!!
how about non bumi dealer? all crying in their secondhand car dealer garage?
There is no equality in Malaysia. Soon this country will rot
Its rotting now, soon it’s going to sting. The trade mark of cronies economic.
our country is rotten, long time dy…
Other countries oso no equality.
Other countries oso no Proton
not “soon” but already rotting for years…
a rich resource country like M’sia has lower reserve than a tiny dot like S’pore???
Msia supposed to have so many types of minerals, now gone… So many Timber, gone…. So many Rocks and Sand, all sold to S’pore… and many many more gone under BN(>55 years)
TQ BN
Ini semua jasa BN/UMNO/Najib. Pujilah kerajaan
I believe the bumiputra stuff is consider racism in USA.
Too many recondition car demands, especially the Toyota Vellfire, Alphard, Estima and Harrier. Good sales, good RV, good reliability.
Just googled it , still got problems. Oh wai
Better than 30 years of protection but still got problems. Oh wai…
They should have regulated it as “Sdn Bhd with 100% Malaysian status” instead if they wanted to go along with this whole 1Malaysia fiasco. I don’t understand how can you promote to the world that we are all united under 1Malaysia then make laws like these which discriminate against non-Bumiputera. I mean, come on, I didn’t choose to be born in Malaysia, but I would like to be proud of being Malaysian. And everyday, news like this just makes that become increasingly difficult.
They are forcing more and more capable and wealthy non-bumiputera leaving the country, the future of this discriminate nation is doom
Ini semua salah BN/UMNO/Najib. I mean, really
This is what they call 1 Malaysia???? So funny.
You can ask for more rights where your ancestors belong. Go there dun come back
Well said bro
i didnt read the whole thing , what is striking is the word Bumiputera is mentioned too many times…its only one or two guys will benefit , who will eventually sell their AP’s(dont worry , there are million loopholes purposely made for that reason)…
this is so sad , reading this whole article is exactly whats wrong with our country…
Still believe we are a Malaysia for Malaysians type country? More like non-bumi pay tax and work for the benefit of the bumis. We are not your slave, non-bumi make up for highest tax contribution.
What happened to the Malaysian Gomen previous promise before the election? We will gradually lower the car prices by 30%…But now they change their story again…the Open Approved Permit (AP) policy is here to stay!! “But” with various improvements to the system to be introduced in 2017. MITI has now detailed the new rule changes….*In other words, this is a opportunity to apply more apartheid rules into the economy of this country in the name of NEP…for over 50 years they have been using NEP to enrich their cronies only…not the general Malay populace… Now hey want to blatantly use this as another ploy to further rake in more cash for their cronies….What’s so legal about this?!
Among the specific requirement are:
1)A company with a 100% Bumiputera status.
2)All shares have to be owned by Bumiputeras.
3)All board members & key posts must be held by Bumiputeras.
*Can someone tell me the above 3 points not abusing powers by being racist? The Gomen is preventing other non-bumi races also Malaysian citizen to take up business in this sector…whatcha wanna callit…racism or apartheid? Your guess as good as mine!
A)[The objectives of the new Open AP policy is to provide car buyers with more options at more competitive prices] <= Where is it stated that the price will be more competitive after this amendment?
B)To empower the Bumiputera economic agenda, giving equal opportunities to Bumiputera businesses to be involved in the automotive sector?! <= Already almost all car companies are directly link to the Gomen (GLC) and all AP holders are already Bumi owned…What crap is MITI & Gomen trying to push down our throat!
C)To ensure the Open AP policy’s socio-economic contribution is not affected? <= The person who proposes this idea is on a trip to lala land! He is talking about enriching a few cronies in the hundreds…by putting the rakyat in the millions into further debt…Oh by the way we also get crummy specced cars for the sky high prices we pay!
That's the corrupt nature of this beast called the Malaysian Gomen
Statement like this is the reason why Proton is ROTTING and the whole Malaysia has to pay the price. Just for what? For some ‘Usahawan’ Bumiputera to succeed?
That’s why Proton will never be closed down, for the benefit of UMNO cronies
100% Bumi-owned and holds key position. Means BMW Msia, Mercedes-Benz Msia not qualified as AP holder. But a car dealer Ahmad Kereta Import Baru & Terpakai, 100% owns by Ahmad and operates along Jalan Klang Lama is qualified instead? Apa Punya MITI?
u seem don’t know what is Open AP n AP use by car company n what car need AP.. Those AP mention by the article usually use by recond car dealer or dealer bring model that official distributor or car don’t sell aka Gray Import.
No wonder Msia cannot progress.
In the end still AP and I help them change the whole sentence to reflect the true…
Must be 100% UMNO Saudara and Saudari to acquire AP.
Rakyat can keep skin and die.
A Sdn Bhd company with a 100% Bumiputera status (and must be crony of you help me i help you), look at those AP king case.
Another good reason why we should reduce even boycott recond cars.. when the buying stops.. it “kills”..
State sponsor racism
All bumiputera to have equal chance? If a bumiputera who has no connections with umno applies for this business would he be granted?????
“Have the capability of handling the financial requirements of an automobile import, distribution and sales business, and a minimum capital of RM1 million.”
And the rich gets richer !!!
What happend to the agenda of lifting the socioeconomic status of bumi’s? Or was it a few selected bumi’s?
Please clarify.
Wow!! Woww!! Just woww!! The so call bumi is not referring to tom, dick and harry folks!! Is those cronies ah pa, ah ma, saudara, saudari, in law family and etc. Mid and poor bumi tier wont stand a chance to enjoy the fruits la.
BS policy. 100% bumiputera status company. So the ‘prince’ is going to shape the automotive landscape with these so called ‘Open AP’? What is so ‘open’ about it?!?!?!
Open to them, close for you, got it?
Restricting APs Open Policy to 100% bumioutra owned entities termed an improvement! How can it provide car buyers with more options at more competitive prices; it’s safe to conclude that AP car prices, under the new policy, will increase substantially to cater to the middle man whom are non bumiputras.
Why is there heavy censorship of comments in this article?
You will pay for this. Once your crony company Proton goes bankrupt, your UMNO leader downfall will be next. Let’s boycott Proton in return
First thought, it is a racist policy, it should be to All poor regardless ethnicity.
But after deep thought, this is what “they” plan to do, we argue over the surface issue.
The real issue are:
Car price should be competitive, no extra tax. Just a regular sales tax or GST since now we have it.
Anyone should and could be able to bring any car here without the hassle of excise tax and etc.
AP should be price at reasonable price, where everyone who think to bring a car of his/her desire should bring one. (as long it comply with the safety and emission rules and regulation in this country)
Those who bring car with lower emission and low fuel consumption should be encouraged, maybe reducing the price of AP by half or any other encouragement.
Finally it shouldn’t be the issue of racism that we should be discuss. This country belong to All Malaysians.
Dun worry. There r many sino kadazans iban who dont look talk or speak like kadazans n mamaks and arabs pakistan indons portuguese and even mat salihs who are bumiputras in malaysia. All will b entitled to get AP. Malaysia boleh
how is this crap contributing to the country’s economy? This AP should be abolished long time ago
This AP is like giving honey sweet to bp without doing anything. Come on, that’s called open AP?
i can guarantee u alot of comments didnt pass the moderator!! including mine !
This is not a policy revision….Instead an act to create racism…
Like I’ve said not to sideline other races…Sorry, Najid your request to America like ..Visa waive can’t come true :)
i understand what the non bumis feel on this matter but to be honest, this AP thingy doesn’t really benefit the bumis at all. IMO the well connected aka cronies will get the APs
A Sdn Bhd company with a 100% Bumiputera status. All company shares have to be owned by Bumiputeras. All company board members, along with key posts within the company have to be held by Bumiputeras. Current AP holders will have to reapply.
Bumiputeras is..??
If I m PM, I will give AP toll all rakyat once in a life time. You work harder, you pay income tax to help the country, why not give SATU AP to each qualify rakyat. 1 sen
maybe AP should ONLY sell the cars to Malays rather than to non-malays,
Buat lah mcm mana pun……yang kaya tetap kaya. Non bumi jangan fikir semua bumiputra dapat untung. Kalau semua bumiputra dapat AP dah tentu non bumi kerja dengan bumiputra. Jangan fikir semua bumiputra ada capital 1m akan dapat AP……….kenapa ramai lagi bumiputra tak dapat? Cina tak dapat AP ramai yang kaya.
Tanya lah G Kenapa semua bumiputera tak kaya….Semua Kat milionare club dia org tu…u**o tu Ada capital Lebih 1 Juta. Kenapa dia org tak share ke? Yg tak layak masuk kelab mereka tu semua kena Kerja 2 tau 3 kali. Sebab tu dia org kaya….
This is not about dapat tak dapat. Its about usaha ikhlas dan bersungguh2 or otherwise. If you work and pay your dues why shouldn’t one become kaya? It is the kaya goyang kaki that we are against.
Because we are not afraid of open competition. Others are unable to compete in business because of the existence of such ‘privileges’ that allows you to rest on the laurels. Non ‘bumis’ (please avoid this term, it’s disturbing to think we are ‘non-bumi’ i.e. non-person, forever second class citizen when we are one of the biggest tax contributors for years), on the other hand, have no choice but to work very hard. Such ‘privileges’, double standard practice do nothing good for all of us including you. Where is the fairness for everyone in a democratic, 21st century society?
Sorry for being straightforward but this is what has happened, the reality. Already independence for more than half a century but we still have core racial problems – it’s very saddening to say the least.
U ingat non-bumi tak tau ke yang ini semua untuk crony UMGOK shj!? Habis nak buat apa? Non-bumi sudah cuba nak tukar kepada kerajaan yang lebih adil. Tapi di tuduh cuba mengambil alih kerajaan pulak. Tanpa sokongan rakyat bumi yang majority, kroni akan tetap bermaharajalela and rakyat biasa (bumi & non-bumi) akan terus sengsara.
CRONY POWER RULES.
In this world, the rich writes the rules for themselves, not to benefit the average guy on the street and kampongs.
The whole world is laughing!!! Good luck to Malaysian!!
You will pay for this
i hope everyone would stop buying cars….see they change for the better or not…this gov gone case
Should stop buying Proton. See they bankrupt or not
should call it BUMI AP or CLOSED AP…this is not empowerment. this is down right spoon feeding.
That said, 1Malaysia is smokescreen to tipu rakyat…
If you have rules like this there can be no 1Malaysia!
“Sdn Bhd with 100% Bumiputera status”. Can see this requirement everywhere and becoming more & more…oil & gas jobs bidding, banking jobs bidding, shipping jobs bidding, construction jobs bidding, and many licenses bidding, etc. Non-bumi companies must hire minimum 30% bumi while many contracts can only be taken by 100% bumi. It’s like a shop owner asking you as a retailer to hire his sons (quota), collect full rental from you every month (tax) while imposing all kinds on restrictions on you and telling you that you have his zero support for the business you do. And he will force you to sell your business to his sons if he sees your business making good profit. He will do this by threatening to terminate your rental (stop giving license or imposing price control so you can’t make profit. Example: Msia Coca-cola, KFC, Honda cars, sugar supplies, SPSetia, etc).
My goodness.. OMG..
More tongkat please
simple, just DONT BUY from any AP holders and let them hold the APs without market, its equivalent to useless papers.
i mean, still believe anything that AH-NOR group said? If want to complain and STILL buying from AP holder? just dont complain at all since indirectly encourage such systems going on.
start with using our consuming power
Imagine before this 100% bumi rules, the risk is like co-own between non-bumi and a bumi owners.
Now 100% risk fall on bumi itself, let’s see when there is a financial tsunami, who’s gonna suffer the most.
Still, after all said and done, it will always be Ali Baba style. A Taiko reaping the benefits at the back.
If you are concerned about the non-indigenous why did not immediately send them to a place and then let them free for a country, this could be let bumiputera relief in life, This can be solved bumiputera forever.
If you don’t like what you are seeing, stop buying those cars, boycott it. But I guess we have too many rich Malaysians … say no choice have to buy loh … But you do have a choice.
another racist policy….
Its good to see efforts been taken by MITI to stop abuses in the AP system.
This policy will only enrich few person/families only. Its just another selfish policies from BN government.
If BN government really Rakyat Didahulukan, create a public listed company, hire good CEO to manage the company, let KWSP 100% this company and this will benefit WHOLE COUNTRY!
It is not equal, but it is supposed to be “fair” i.e. to provide tongkat to the less endowed bumiputra. What must be addressed, however are:
1. To eliminate the Ali Baba in such businesses and get rid of the rent-seeking mentality of individuals. 100% bumi? Never a problem for the rich towkays before and never will be next year. Ever heard of proxies?
2. To really provide fair distribution of the open AP to the target group i.e. deserving, hardworking bumiputra. Not just UMNOPutra
3. To provide opportunity to more co-operative companies i.e. group of bumiputra rather than individuals. MITI should waive the 2 years experience requirement for such groups. So the opportunity can be shared and only then “fair” can be mentioned in the same breath with open AP
It is an open secret that this scheme was designed so profits could be channelled to the reigning political party of the day and not really the government. So people, do your deeds by not feeding their greed by buying from them. It is a small sacrifice lah, just don’t buy recond cars
Even i dun own F30, i want to make it my avatar, can arr?
Before this all the importer or AP holder just use their name only for bumi status but behind all the bumi company is AP King which u know who…now they duwan just 1 or 2 same big player. they one all the real bumis do the business. Not Ali Babaing the AP’s.
Hey, i want to be a crony oso. Any links?
Hmmm still can’t import 2000 year make car