It has now been confirmed – the Open Approved Permit (AP) policy for the import of used cars is set to remain in Malaysia, as announced by the Ministry of International Trade and Industry (MITI). Following a comprehensive research, a new set of improvements will be set in place from January 1, 2017 onwards.
In the statement, MITI adds that the improvements to the current system would allow “eligible new bumiputera companies that strictly adhere to the criteria to participate” in the used car business. To ensure compliance, a qualified and independent auditor will be selected to audit the new companies involved.
“The government will (also) launch a programme to use a portion of the open AP fees to enable the public to directly benefit from this new policy. The details of this programme will be announced later,” said MITI.
Findings of the research into the current AP system, covering the analysis of its effects, contributions and implications to the industry, were also revealed.
“The research team opined that the current Open AP system gives opportunities to the public to purchase used imported cars at a competitive price. They also found that the distribution and importation of used cars industry contributed significantly to the automotive industry and the country’s socio-economic development,” said MITI in the statement.
It went on to add that the system’s contributions to the supporting business and service sectors such as banking, insurance, shipping and logistics was estimated to be in the region of RM450 million per year. The government also collected about RM2 billion worth of taxes and fees per year, based on the current system.
Furthermore, the study found that the AP system directly provided job opportunities to 3,800 high- and medium-income earners. Meanwhile, it’s said that the policy contributed to 5% out of the 36% bumiputera equity in the automotive sector.
The research was conducted over six months, and involved accounts and opinions of industry players, consumer associations, NGOs and politicians. As mentioned above, the study recommended that the current policy be continued.
MITI went on to warn that, “if the system were (to be) discontinued, there would be no more used imported cars allowed into the country and this would deny many people the opportunity to buy such cars. Also, the percentage of bumiputera equity participation in the automotive sector would reduce to 31%.”
The Open AP policy was supposed to be discontinued by December 31, 2015, under NAP 2009. The NAP 2014 announcement, however, mentioned that an in-depth study on the impact of the termination of Open APs would be carried out. The study has now been completed, as described above.
So folks, it’s now certain that the Open AP policy will indeed remain, with improvements to come in 2017. What do you think of this decision?
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Rrrrrrright…. ‘improved’….
They ignore what we as customers like to see. We like an open automotive industries.
Well lets focus our action to not buying any new and grey imported cars for around 1-2 years. TIV will drop, stock will not moving, inventories will go us and sooner or later price will surely drop.
For sure I will maintain my current rides and refuce to buy any new or grey imported cars…
Another thing is, if we ignore them and not buying, all their yada yada yada will be irrelevent.
When the buying stop, the killing can too…
If we work together, we can win this…
Agree
And where’s the Red “dignity”??? Now he supporting the Rakyat or the dumno ‘dignity’ ministers???
Here protect bumi, there help bumi. Then why ask non bumi pay tax?
MITI “if the system were (to be) discontinued, there would be no more used imported cars allowed into the country and this would deny many people the opportunity to buy such cars.” OR do pass fill months “Government encouraged Rakyat to buy ckd and local product” !!! Double standard by Dumno ministry??? Government BN full of lies !!!
Echoed. Some models, the grey imported model are highly overpriced, eg. 2014 recond and 2015 brand new Mercedes A250 doesn’t differ much in terms of pricing (just a few thousands only which is peanut for these group of carbuyers). Worse, a 1 – 2 years old recond CLA250 cost at least RM250k, some beyond RM300k mark that already enter the brand new C-Class pricing territory.
Bolehland has a EVERLASTING PERLINDUNGAN POLICY for too long.
Others like South Korea ,are miles ahead in automotive sector.
While I agree with you, this won’t work as there are millions of Malaysian don’t think the same. There are so many brand new BMW, Merz, Audi and even Bentley on the roads, peoples are so rich now to change car, who cares about the pricing.
2017, let’s see Pilihan Raya Umum ke-14. Janji dicapati..
Sejak 2005, diorang maseh improving..
Sabar je la wahai Rakyat jelata :D
http://paultan.org/2005/10/19/new-malaysian-national-automotive-policy/
OMG…just improvement only take yearss…Sleeping kah…The money make them blind forever….puihhhh
Hahahahaha… no surprise. As expected. Current nasi lemak gov won’t let go their most important ‘santan’ in their rice. That gives the most fats content and make what nasi lemak is.
3,800 jobs. But 26 million suffer how many billions RM in higher costs. And still so many toll increases and bad roads.
Sure Pekema will refute it. Should be higher figure 100,000 workers affected.
apa lagi PEKEMA mau??!!
Persatuan Pengimport Dan Peniaga Kenderaan Melayu Malaysia
Rafidah Aziz : To me, the entire AP system should be abolished.
http://paultan.org/2007/07/07/miti-now-allows-open-ap-holders-to-import-any-car/
What a nice name “Open AP”
TAx i
Sad case…
+ Racism
* Car prices will still be high
Unfornutely, no, this is not about racism, how saucy and convenient that label may be to you. Rather, this is more of taking care of certain group interest (dumbno). Dumno =/= a whole race
Cannot agree with you…This is not racist. This is protecting a specific group of money sucking organism under a specific money sucking party. They are many Malays not getting any benefits from this.
Agree with Jenglot, please do not conveniently use that label.
-I Have Just Added A Comment-
kena kencing lagi dgn Pendekar Bugis
Hey MITI and the big G, by using the feeding way none will grow strong. No matter how many decades you spend. The other question is bumi or kroni?
For god’s sake how many more years do bumiputras need to improve themselves? Do you need the world to stop rotating to wait for you to catch up? We have already been catch up by our neighbouring countries, soon we will be the least developed in SEA. Time to wake up la!
Worse, AP is only helping the few elite Bumiputras!
For ever and ever?
Hardly surprising from our flip flop government. If they really want to help the people by making cars affordable, the hest way is to reduce import duties and sales taxes.
Further more, grey imports are not built for local conditions. Take for example, the dark tinted glass does not comply to local laws.
Why allow buyers to buy such cars and penalise them on the road. Its akin to screwing the rakyat left right up and down.
Its the most stupid law in the world!
How does this stupid thing help the economy? By having high duties on automobiles, there are 2 major problems created:
1. Reduced safety to keep costs low – costing lives
Car makers need to keep costs low to be able to sell cars. In that way, they strip the specs, and usually, this reduces the key safety features.
In order to defend this and the high duties policies, government is sacrificing its people. Look at Proton. Until today, it still makes coffins on wheels, only keeping safety specs for expensive variants.
2. Wealth destruction by duties
We need to finance the duties of the car: get a freaking loan to pay the duties! And the car is a depreciating asset. So, at the end of the day, your money paid for the car is burnt, but the banks and gov laugh all the way to the bank.
This stupid policy is one of the reasons why Malaysia remains so darn poor. Our people are forced to burn wealth because of this. If wealth is put into assets which grow instead, imagine that. Our GDP per capita would be way higher by now.
So, MITI. This policy and that stupid NAP… how does it contribute to the overall economy?
for me, we can’t blame the AP system only. As we know, the car is very expensive in malaysia, whether you buy from local distributor or grey imported.
if the people can get together, hold their money at certain duration from buy the imported and expensive car, then i believe this AP system or industries will collapes.
gov use AP system to collect tax only..and also the bank get huge margin. so i believe, whatever policy, AP still remains.
Continue to have more Vellfire, Alphard, Estima and Harrier on the road.
Those cars are having good RV too!
So chosen to enrich 3800 fat cats rather than the 20 million rakyat?
This is like saying that the cancer is deep enough and we would not treat it coz now its big n widespread enough to be considered as legitimate part of the body.
Using bumiputra as a shield to let this continue is a disgrace to all bumis, majority which never benefit but suffer from effect of this practice.
the keyword is “bumiputera”… and it’s a good opportunity to songlap… why not
There are 2 classes of Bumiputras, the Crony Bumi and the Non Crony Bumi.
Would you think those people in power will throw away a money printing machine. ‘AP’s Give people a chance to buy imported cars, what a stupid excuse!!!! You mean cars cannot be imported without the need for this AP taxation?
>> MITI went on to warn that, “if the system were (to be) discontinued, there would be no more used imported cars allowed into the country and this would deny many people the opportunity to buy such cars. Also, the percentage of bumiputera equity participation in the automotive sector would reduce to 31%.”
What a load of crock! These guys really are trying to test our intelligence.
In other words, MITI is saying importing used cars to sell in Malaysia is illegal and OpenAP system is the undertable system to make this possible.
When the buying stops, the importing can too. 1Boikot
Why the need for a team of consultants to spend 6 months conducting a meaningless study to produce a conclusion/recommendation which 90% of the populace already expected?
Trying to justify eh?? This is an insult to our intelligence!
tongkat continues……
Only in Malaysia this sort of bias, race-based, cronies (i help you u help me) business thrives…
Really tak malu, and worst….burdening the rakyat again, and again.
Rakyat 1(kali lagi) dikencingkan…
I understand where the government is coming from, they say this AP policy gives a chance for bumiputera entrepreneurs to try their luck in the automobile industry. But the problem is, not everyone does that. A lot of them probably just sell their APs to other, bigger parties, and they just live off the profits without putting in any real effort. This is unacceptable. How come there is only Naza ? There should be tons more bumiputera run car companies by now, yet, after all these decades, little has changed. The AP system has done nothing but enriching government cronies all this while.
This dominate business work since few decade, for their sake exploit name of bumiputera for channel only business, the day of AP cease is the day of malaysia bankrupt.
That’s true! But although a lot complaints…still recond car selling well. As GOV… They will jz “SO what?”.
yawnnn….nothing new…no surprise…AP will go on for eternity until kingdom come
How to improve la like that… Our country will forever moving backward!
Key Mark Betul
In the end we still need to paid a fee to those UMNO ahli keluarga who are the only “bumiputera” in Malaysia. The rest are second citizenship especially the Chinese and Indian who are under the third class citizenship.
just give free AP for every malaysian to buy import car once in a lifetime + no duty imposed
If the govt. really cares about the Bumiputera please open up the AP for all Bumiputera to bid for the APs not just giving to their cronies for peanuts.
As all mention do the Government really care for Rakyat? Or cares/pumped/spoil the cronies??? Rakyat is time to change !!!
Dear all current and future luxury car owners, buy only officially imported cars and no more grey imports, then the balance will be restored.
Simple as that.
No matter if you buy grey/AP or official they all below to bumi or GLC that’s the way they songlap the rakyat’s monies. the high tax and duties that we pay for all whether CBU or CKD are channel into their pockets. Plus they want to maintain this process as its their goose that lays golden eggs. They even have the audacity to give us stripped out safety features for these overpriced used vehicles.
Now they even waste more of the rakyat’s monies by conduction a survey/report of about a year on this useless AP system that probably costs millions of the rakyat’s monies.vany right thinking person bumi or not will tell us this is a load of BS. by the BN/DUMNO!
Spineless MITI are again slaves to its master cos they also have to “cari makan” kan ? .
Only the rich enjoying the perks from the NAP.
Just looks at the tax free incentive accorded to the S400 hybrid. More than a billion of tax wriitten off for the rich.
Janji tak janji rakyat again kena played out.
Simple solution to all this nonsense. Stop buying cars from grey importers. I hear a lot of bashing, yet there are loads of Alphards, Wishes, etc on the road. That is the reason why they will keep this crappy system. Stop buying!! Let the market crash for 6 months…then we will see genuine change.
Make sure you x the correct candidate in the coming election. We do not to see this stupid xcuse after the election. Not anymore.
Very nice looking Vellfire.
“The research was conducted over six months, and involved accounts and opinions of industry players, consumer associations, NGOs and politicians. As mentioned above, the study recommended that the current policy be continued.”
They’ve conducted research for 6 months and who did they asked???do they even asked the consumers????Oh wait….they asked the consumer associations and ngos…..which ngos and associations may I asked?
Presideng Hadi. Please punaisihat PM Najib to reduce car price! This is ummah problem.
So far Malaysians has lost rm500 billion collectively to support this stupid NAP scam. The original excuse was to support proton saga. It is high time to abolish NAP. It is just an excuse to tax car buyers.
Is this a news?
Kroni didahulukan lah. Mana ada kerajaan nak bertindak untuk hak pengguna, itu semua cakap kosong sahaja.
This AP should have been abolished 10 years ago
Used kimchis are very dai mai
nasi lemak dapat AP
then sell it to others for quick profit
MASLAN in da house