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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.