Bumi Trader reveals loophole in AP system

Khairuddin Mohd Khir received about 10 APs a month in the 1980s but failed to secure any over the past 15 years.

New MITI regulations in 1990 required him to join a consortium of car dealers in order to continue getting APs. But the consortium collapsed. Certain companies were given chances to form second and third consortiums. Not his.

I am a victim of a loophole in the AP awarding system. I did not run an Ali Baba company.

The AP system is due for a revamp by the government. I am not really interested anymore. The result is probably a shift in the AP wealth distribution from the AP Kings to even more smaller AP Kings, or an AP-selling system that benefits the government’s tax coffers. I might sound pessimistic but we are never going to get affordable quality cars here. None of these cabinet decisions ever result in any good for the poor rakyat which are the majority of the voters which actually put that bunch of people up there.

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Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • cyder300 on Aug 09, 2005 at 7:05 pm

    There you go, the rich and corrupt becomes more rich and dirty while good tax paying citizens pay for their giant bungalow, helicopter and golden toilet bowl. Thanks alot…yep Malaysia Boleh…..boleh rip you off in broad daylight.

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  • William Lau on Aug 09, 2005 at 9:02 pm

    It pains distresses me to learn of the wanton lack of nationalistic concern for the country's economy of those at MITI who during past few years issued ten of thousands of APs to the few bumiputras who became instant billionaires.

    The reasons given for such abuse were more of excuses that certainly and clearly underestimated the intelligence of the average citizens of Malaysia including those delegates at the recent UMNO Assembly.

    The APS had wrought in my view great economic injustice to the country; in that, it seriously bled the country of its resources. Reportedly, the revenue from car exports for year 2004 came to about RM380 million while that from car imports drained the country of RM4.2 billion. ( I beleive these figures are were just estimates ). Any economist would be able to detect the ill-balanced equation and I am most surprised that the Minister of International Trade, Dati' Rafidah Aziz avoided this issue completely. Our former Prime Minister, Tun Dr Mahathir Mohamed, in my view, was polite enough to spare her the agony.

    I have friends and associates who have been running their transport companies for years. They have fleets of lorries that need replacement from time to time. Attempts had been made to apply for APs but they were rejected. As a result, they had to resort to the black market to buy the APs whose price ranged from RM20,000 to RM30,000 each. The discrimatory practice of issuing APs had caused untold misery and agony among the tranport operators for many years and I just hope that justice be done and seen to be done for this category of businessmen whose activities postively and directly contibuted to to the national economy by providing jobs and services and revenue to the Government.

    We have the national cars assembled in the country and they definitely need the protection of the Government. Importation of cars and other vehicles shall need to be strictly controlled in order to encourage the locals to buy local products. This will prevent the efflux of funds from our country. But, the local producers must not rest on their laurels. They must pay more attention to research and development. The quality must improve to meet the international standards.

    We cannot afford to produce national cars with double standards in terms of price and quality. Let us stop buying into ailing foreign automotive manacturing companies in the hope of obtaining technology to produce the car engines. We must in the long term rely on our own indigenous efforts.

    Let us erase for once the myth from our rational mind that foreigners are so kind as to transfer their technological know-how to us. They have not and never will hitherto.

    Let me just illustrate what I am trying to say. The TV industry has been in the country for almost 30 years. How many Malaysians have the foreign firms actually and really trained to be capable of producing a TV? I let those concerned to speak for themselves. The number if at all exists is shamefully countable.

    Let us hope the Cabinet will keep an open mind to deliberate on what the Minister of International Trade has to report this Wednesday and come up with a workable and sustenable national automotive policy for the common good of all concerned and benefit of the country without regards to race, religion and colour.

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  • Well it doesnt matter whether its an Ali-Baba style of business or not, as long as you have a 'click' with our MITI minister or excutive secretary, or you are an ex-MITI servant…you gonna get yourself 100 pieces per day…until you own your heli-pad…bangalows…few wifes…and driving a different model of cars every day.

    Pathetic? No No No…its the NEP wat…accept it mate. Any other better words than hopeless? share with us

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  • William Lau said,

    August 9, 2005 @ 1:02 pm

    Reportedly, the revenue from car exports for year 2004 came to about RM380 million while that from car imports drained the country of RM4.2 billion. ( I beleive these figures are were just estimates ). Any economist would be able to detect the ill-balanced equation —–> Even my 4 years old nephew would know the huge difference between this…need not an economist to spot the difference. What about our cabinet? hmm…maybe they are applying some policies besides the swept under carpet —> Ostrich rules. (plundge your head into the ground and you cant see or hear ~~~)

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  • So, tuan2 & puan2 who above 21 years old, know what to do next election… I am sure my vote will go to opposite parties. 1 year before election than there will no petrol price rise & whatsoever news & people will forget the pains & hates we feel right now. So, please do not forget this & go for opposite party….!!! Stay in your mind. shit AP system!!

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  • AlexC on Aug 09, 2005 at 11:34 pm

    In short, whether you're still malay, you still need to click… in return, they make you millionaires… but when you're malay and you dont click, this is what happens to you… why the NEP fails??? there's too many factors i could think of this very second, but one good reason i strongly believe is they would want to have this NEP priviledge as much as they claim for their bumiputra status, so the rich may get richer while having the excuse of some bumi still lagging behind…

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  • AlexC, Yeap you are totally right…not some, but a lot of bumis are still lagging behind. The best is that they want to take the 30% from those who has strived that long to achieve instead of taking the 30% from those who got their wealth from the government…make sense? well Bolehland government never talk abt make-sense with you ok? Thats why a lot of things nowadays esp. the AP never make-sense from the 1st day.

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  • why the guy think that he deserve more APs? it's not his birth right!

    does it mean that once you got APs, you can get more and more?

    i need a few APs myself not for trade but personal use..one for a mitsubishi..one for………

    hey, newspaper guys please publish my storylah!

    secondly, i agree 100% with you paul!

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  • The AP King cheat the tax, LHDN route for some other alternatives…?

    LHDN buru peniaga teh tarik

    KUALA LUMPUR: Jika selama ini hanya tokoh korporat, ahli perniagaan dan pekerja bergaji tetap menjadi sasaran Lembaga Hasil Dalam Negeri (LHDN), tidak lama lagi kumpulan lain yang berpendapatan lumayan tetapi tiada rekod pendapatan pun, tidak terlepas daripada buruan.

    Sistem pangkalan data yang sedang dibangunkan oleh Lembaga Hasil Dalam Negeri (LHDN) bukan saja dapat mengesan laba penjual nasi lemak atau mamak teh tarik, malah ejen insurans, ahli jualan langsung, broker hartanah dan pelbagai profesion berpendapatan besar tetapi selama ini mudah mengelak cukai.

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  • 1st class of buildings, 3rd class of management & 3rd class of so called "new economy " system, eventually make majority of poor people suffers.

    Well tats Malaysia !

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  • DOG THE WAN on Aug 10, 2005 at 5:56 am

    I think the NEP actually means "Need Endless Protection" to these AP king and NB members. Not for Bumi or benefit of us.

    I would suggest government should RETURN back the MONEY TO RAKYAT. I WANTS MY MONEY BACK. These millionaires or billionaires should return back the money to US. They money really from the SKY "Million Air". They are not qualified to own that Title. DATO??? TAN SRI..???? KaaaaPuiiiii……nah!

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  • DOG THE WAN said,

    August 9, 2005 @ 9:56 pm

    would suggest government should RETURN back the MONEY TO RAKYAT. I WANTS MY MONEY BACK.

    —> you wait and c larrr…petrol go up they go up…petrol go down they every go down anot arrr?? they ensure you the money you paid as tax will be returned to you and did you received arrr?? sorry wor your money just went to the AP kings and those ppl who benefited under NEP!! you ever think there is a return of $$ to u? maybe in our night's dream larrr we got the $ back

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  • Yeah ,a well describtion abu!

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  • ir_entau on Aug 12, 2005 at 8:14 pm

    Kanneh liao the AP kings…….shithead only see $$$ signs. They 4get that god is observing every step they make, hope they realize b4 god take actions. At least donate la to poor people. Poverty line in malaysia still increasing whether bumi's or non bumi's all suffered liao. Kanneh liao the policy maker who makes the sytem balancing towards the cronies side but not to the people who vote and believe in them that they could make life more easier.

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