Those who abuse the approved permits (AP) given to them will be punished, said international trade and industry minister Datuk Darell Leiking, who urged those who have proof to step up.
He said that in response to recent reports alleging that Putrajaya had approved 38 new open AP holders who were not in the car business, but merely looking to sell their permits to established AP holders. The existing AP holders have had their annual AP quotas reduced to accommodate the new recipients, it was claimed.
Open APs are required to import used or recond cars, while franchise APs are used by official brand distributors bringing in new CBU units.
“Show us the proof and I will make sure that I myself will ketuk kepala (knock the heads) of those who abuse this AP,” he told the media in KL yesterday, as reported by Bernama. Leikeng added that all the new AP holders had been evaluated by internal and external auditors to ensure that they met the government’s requirements.
“If there are allegations of abuse, we want to see proof. Don’t create stories and leave it at that. If there is proof, why don’t you show me who are these people and that they are selling their APs. What we want to do is to get to the truth, tangkap (catch) whoever sells the AP. And if these people do, we expose who they are — their directors and families — because that’s wrong,” he said at the same MIDA event, picked up by The Edge.
Earlier, MITI said in an official statement that the new open AP policy had been implemented with effect from January 1, 2019. Under the new policy, there’s no limit to the overall number of APs to be released throughout the year and companies may apply for additional APs based on their sales performance.
The ministry said nearly 300 applications were received by it when an offer for application to become an open AP company was made from May 23 to June 21 in 2016. It said that after an evaluation process, including an audit by a qualified independent auditor, 164 companies qualified to become AP holders, and of these 128 are existing companies while 36 are new.
“Conditions that needed to be fulfilled, among others are, the company must be 100% owned by Bumiputeras, including in key management posts, and it has at least two years of experience in selling and distributing motor vehicles, and a strong financial position,” the ministry said.
It added that at the moment, most of the new companies are still not fully in operation as they need to fulfil some technical requirements and be prepared for business operational matters. It added that the details on current qualification as an open AP company as well as the latest list of open AP holders have been published on its portal.
The ministry said the implementation of the new open AP policy is in line with the government’s decision in 2015 to continue the policy with some improvements, including providing the opportunity to new Bumiputera entrepreneurs to participate in the industry. It added that the new policy, which should have been implemented in January 2017, was postponed for almost two years due to uncertainties in the domestic automotive market.
The companies are subjected to the conditions and rules imposed by MITI, which will continuously monitor and audit them. Under the new policy, the ministry said it will take decisive measures if there is a breach of any of the conditions.
These include withdrawing or suspending the allocated and approved APs, blacklisting the companies (including every shareholder and board member of the company) from submitting any future application on open APs, and taking a legal action against the company. The ministry stated that last year, it blacklisted nine existing companies for offenses and for not complying with the conditions.
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Sounds like the flood gates of APs are finally opened.
Kudos.
It’s funny how the people placed there to investigate and abolish unfavorable policies, are instead asking the public to do it instead. Don’t ask people for proof, if you can’t find the proof it means you’re not doing your job.
How difficult is it to abolish AP? It is just one quick decision and it can be closed overnight.
Just open a counter booth in MITI. Those who want to import cars, just go to the counter and pay cash and get 1 AP on the spot.
Then open another counter to offer shipping services to the new AP buyer.
Government also can make some profit from the
1) sale of AP
2) Shipping charges
I don’t know why so difficult to to direct with MITI. In Malaysia always must have agents. AP holders are mere agents.
Why do we need agents and middleman? These agents are merely living of the 30 million Malaysians.
Minister asking for proof from his cronies to tembak their other cronies that got habuan. Why asking these co-conspirators to show proof to the ministry? Why didn’t he tell them to show it to the police or MACC? This smells like a cover up activity.
Cover line la boss, Bumiputeras ppl our owned.
Better put on FB & Twitter. Let FB & Twitter to blow open the cover up by International Trade and Industry ministry.
It is no big secret lah. Past 20 years everybody also know that those who get the AP sell of the AP. Nearly all the AP holders do this.
Go and investigate. Those receiving AP just goyang kaki and sell the paper for RM40k each.
Time to stop this lazy behaviour. Easy goyang kaki and make others do the hard work for you
It is also not a secret that most of the recond cars brought in have their odometers tampered.
Most of these cars are all ex-rental cars with heavy mileage. Some, done over 200,000KM despite being just 3 yrs old.
These AP all modify the odometer and make it to be 8000KM. Then they send the car to autoSpa and wash the body and wash the engine. The car looks brand new.
Who loses? It is the rakyat who loses because you buy a car that has parts worn out maximum.
In the UK, the price of a car is based on KM and not year of make as it is practiced in Malaysia. So, for example, a 2015 Mercedes E250 with 20,000 KM on it is is cheaper than a 2018 Mercedes E250 with 200,000KM on it
Our AP fellows buy cheap the ex-rental cars with very high mileage.
Untung crony dapat AP. Buta buta untung.
If PH is serious about collecting revenue to help with the Billion Billion hutang, then abolish the crony system AP. Any companies that wants AP, pay directly to gomen. Now need middle man, no need crony untung buta. Bagi gomen untung kau kau.
Buat macam AES. Now you pay saman AES, every single Ringgit goes directly to gomen. Also just like those special number plates. Now you want special number plates, tender terus with JPJ. Gomen untung bukan crony untung.
Dare PH gomen do this???? (Gomen take back AP & companies buy direct from gomen).
Proof? I don’t have.
Because I don’t spend time investigating it.
But, but, but if you drive around town, you will see a lot of car yards selling recon vehicles. And judging by some of the names, don’t “sound” like names of a Bumi company.
So, isn’t it in the interest of the Ministry to raise suspicious at least? whether the car yard is in fact operated by an legit AP holder? or where they get the AP from?
But ya, I have no prove what so ever. Just an observation that whether is worth investigating is up to you.
I also find it strange. the requirement of applicant is to have experience in selling cars. But another comment said that some new holders are still not fully operational… Contradiction to me.
If I am a new entrepreneur hoping to get APs, how am I expected to have any experience selling imported cars to qualify for AP, when I didn’t have APs to sell cars in the first place?!
This is not helping to open up the AP system, but rehashing it among the AP cronies currently. We’re back to square one with this Government!
Ini smua salah National Economic Policy (NEP) …
Pity AP holders being hated all over though some are honest. Go and check the price of re-cond cars at the japanese exporter site, then you know the truth .. its not really cheap. All those allegations of tampering the odometer, rental cars are bullshit daa .. talk is easy by irresponsible lot
Odo tampering happens. I’ve bought a 370z appearing in good nick but after I took delivery gremlins were popping up everywhere. And regarding record car prices, the cars were bought at auctions not your mat google oh I found this can prove a point. Regarding the price, I was advised to do a paid VIN record search of the car which I bought for 200k, it in fact costed them 40k FOB. The mileage was 120000km, not 20k at the showroom. Oh I wished I studied harder in school and bought brand new. So your point is invalid.
Those Vellfire seems over modified.
to be fair all AP should be by auction, all goes to government, so no more clony