The International Trade and Industry Ministry (MITI) has been urged to reassess the current Approved Permit (AP) fee structure applicable to car importers, in light of current economic conditions.
According to Kumpulan Rahman Brothers Sdn Bhd (KRB) executive chairman Datuk Abdul Rahman Ibrahim (second from right), the high AP fee is making it difficult for car importers to keep their businesses profitable. The devaluation of the ringgit was cited as one of the reasons behind the increased operating costs.
Speaking to the News Straits Times, the AP holder said “Syarikat Rahman Brothers Motor has paid RM48.24 million in AP fees since the policy was implemented. We also pay import tax, company tax and the latest Goods and Services Tax (GST).”
“As a result, our ability to generate the capital to diversify our businesses has decreased. Therefore, we hope the ministry can consider waiving or at least reducing the payment until the country’s economy stabilises,” he continued.
However, Datuk Abdul Rahman Ibrahim did express his support for the continuation of the AP system. The AP system, Open and Franchise, was supposed to be discontinued by December 31, 2015 for the former and December 31, 2020 for the latter, under the National Automotive Policy (NAP) 2009. The arrival of NAP 2014 has now left those dates open ended.
The Malaysia Automotive Institute (MAI) has clearly said it is in favour of terminating the Open AP system, saying it does not contribute to the development of the automotive industry.
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As all mentioned before Malaysia aka Bolehland “Quadruple tax system” 1.Government import tax 2.Company tax 3. AP system tax 4. GST. Even own ckd model are more expensive then other regions !!!
AP is not a tax. It is a permit for importing goods…the one that guy want to waive is for Open AP aka parallel import or gray import. All country has multiple tax.
Ok fine AP not tax… BUT AP system makes import goods cost goes up “RM10 become RM500” maybe more… So simply explanation just making products/goods extra expensive “high-end expensive” !!!
RECON car AP its cost around 25k, if totally zero cost on ap, still, we need to pay for expensive cars.
It is still a form of tax to the public. It makes prices goes up.
Correct..AP is not tax. AP is just a system implemented to help bumiputras. Are they still so incapable that they still need help? Or really, should all under privilege malaysians get equal assistance?
So shy. Bawak malu sahaja kepada kaum sendiri. We all know 99% of all AP holders sell the AP to the chinaman. the whole purpose of the AP system was to encourage Bumiputera entrpreneurship in the car industry.
But all AP sold to the Chinaman who et up showrooms.
I hope the Sultan who awarded Datukship to this Datuk withdraw it. Every year untung billions. Now 1 year ringgit jatuh, use the past 20 years you untung gila gila to subsidise this year.
ther are about 20 AP holders but they set up different names. Each AP holder makes clen profit per annum about few hundred million ringgit. One or two have reached RM1 billion ringgit per annum.
The have skeleton staff. Hardly 10 people working for each AP holder. Not much work, all logistics. Each Alphard sold, clean profit Rm100k.
Most of these guys sell about 20 to 30 Alphards each per month. What about other cars???
wats wrong wit these fellas..tis is bisnis..when earning fat pofits diam2 aje…when kurang untung (tapi masih untung) start to demand tis.and tat..
same boat wit the petrol station dealers they want GUARANTEED untung forever
Dulu untung besar Datuk x pikir pon mau byr AP lebih. PM ckp RM jatuh baguih ekonomi negara
Nobody buy Open AP car..
Kalo abg tak puas hati..bole derma je la AP tue kpd golongan B40 kami
AP cume 10% dari TIV thn sebelum. Mane cukup
but still thy make about clean profit RM200k per car sold.
APs only benefit Bumis. Full stop. It only serves their personal interests.
Correction… selected bumis
double correction…selected UMNOs, MIC, MCA & Gerakan
agree. i bumi, no AP. buy second hand wira somemore damn…
third correction. selected high ranking DUMNOs only. I guess small fly like Jamal apa2 pun tak dapat, that’s y he is so piss off and barking at Petaling Street
dumno? what a brilliant word! i thought jamal was one of the benefited AP holder, IBM automobile
APs only benefit Bumis. Full Stop. It only serves their own personal interests.
Not just any bumis. Well connected bumis only.
Correction… selected bumis
baik terus waive jee kewujudan AP ni. baiq semua rakyat Malaysia beli kereta pd harga yg perpatutan
City n Vios xdak AP…sbb buat dlm mesia
its benefiting AH-NOH cronies only..
and they are lousy business people that now banks freezing all loan and no buyers and now they are stuck
All Harrier selling 200k+? good luck man, keep that in warehouse for another 2 years.
Ko ingat aku akan bagi korang beli kereta mahal? Hilang la duit aku kalau AP System dibubar. Proton mati!
*Puja lagi mamat ni please*
Really good money for AP holder.
Imagine your are holding 2000 AP annual and by just selling each AP for RM30K, this bugger will just earned RM60mil for doing nothing.
Stop this excessive profiteering for selected bumi. Let us the end user, normal hardworking Malaysian enjoy good quality car for once!.. Stop this protectionism.
open AP supposedly stop by 31 Dec 2015, right? at an import car company in seremban … the sales guy said… ini semua wayang. malaysia cepat lupa.
thanx paultan & gerard for the reminder.
WOW.. earn so much still complain. Some more some recon car shop no need to even pay AP until the car is sold. WTF … didn’t say also how much they mark up when they sell this so called AP to others who needed it for real business. KAYA RAYA brooo
This guy damn thick skin. Want to reduce the cost of AP but still keep AP. You think what? Have the cake and eat it? Really rent-seeking mentality
complain a lot like those malaysian taxi drivers.
Sudah bagi betis nak peha!
Kalau tak tau buat bisness tutup saja kedai!
This stupid thing should be abolished.
This is like robbing a bank and telling the bank to put in more money so that we can rob more! What clowns we have in this country?
The government must put a stop to this AP issuance to grey importers. Look at the custom import declaration form. The declared price is ridiculously low. What is to complain when they are millionaires. What, inspire to become billionaires?? Get a stool and sit in front of your family’s bank!!