Abolish RM10,000 open AP fee, says parallel importer

Abolish RM10,000 open AP fee, says parallel importer

The government has been urged to abolish the fee for open approved permits (APs) amounting to RM10,000 per used vehicle as it burdens both the seller and buyer. This was said by Mutiara Motors executive chairman Datuk Ahmad Kemin, reported by Harian Metro.

“I hope the new government can abolish the fee of RM10,000 for each open AP as imposed by the previous government. The sum is a big burden to the retailers, who also had to shoulder the 6% goods and services tax (GST) before this,” Ahmad told the media after the company’s buka puasa event in Johor Bahru.

He added that the proposal is to make it fair for local vehicle importers. “It’s different from franchise AP holders, where no fee is collected despite them importing large numbers. So, it’s only fair for it (open AP fee) to be abolished as we the local importers only bring in a small amount of vehicles,” he said.

The Mutiara Motors chief explained because of the high fees, parallel importers are now facing low profit margins, forcing them to scale down in terms of manpower, giving an example of 250 staff to 150 staff after taking into account wages and utility costs.

On the current tax holiday after GST was zero-rated on June 1, Ahmad welcomed the move, saying that it has increased sales by around 30% to 40%. “On average, we sell 15 to 20 units daily, especially Toyotas, and it’s very encouraging. Many consumers were waiting for 0% GST and took the opportunity to buy,” he said.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • simon on Jun 05, 2018 at 11:26 am

    how about NO APs at all to begin with?

    The old AP system introduced by Rafidah Aziz was to enrich those cronies who opened bumi recond dealers.

    only Naza was sucessful. others just resold the ap to make profit.

    say no to parallel import, say no to AP.

    Well-loved. Like or Dislike: Thumb up 94 Thumb down 2
    • NO APs???

      The gov is in need of money now, how could you asked for no AP? I think the gov increase the AP fee so that they can clear the 1 trillion debt, and become the 1st counrty in the world that have no debt at all.

      Like or Dislike: Thumb up 6 Thumb down 29
      • Leafable on Jun 05, 2018 at 3:33 pm

        Penang is debt free. You don’t see Penang street like Singapore clean. Still full of pot hole and dirty full of rubbish streets.

        Like or Dislike: Thumb up 24 Thumb down 15
        • apamau on Jun 05, 2018 at 3:55 pm

          Apa lagi Mutiara Motors mau

          Like or Dislike: Thumb up 26 Thumb down 2
          • Ya. Time to review this system. Need better regulation and better protection of consumer.

            Take the Takata airbag worldwide recall for example, what have these AP holder done? I believe a big number of affected vehicle had been brought in be it new or reconditioned. Had they issue recall? i am wondering if they have proper record to start with in the first place!

            Like or Dislike: Thumb up 0 Thumb down 0
        • Dont be a simpleton. All roads fall under the federal government. Because of corrupted BN, they dont give states under opposition the required budget and attention.

          Like or Dislike: Thumb up 5 Thumb down 4
      • Tabung Malaysia collected 30 million already in case you didn’t know. Gov will reach target soon. So, no need to charge rakyat so much.

        Like or Dislike: Thumb up 13 Thumb down 1
        • sarawak sarawak on Jun 06, 2018 at 12:44 am

          30Million is a long long way from 1,000,000,000,000.

          You have 1TB space to fill and you now only have 30MB.

          Like or Dislike: Thumb up 15 Thumb down 0
      • stastasta on Jun 07, 2018 at 1:03 pm

        OR, we can retain AP, but let the AP be open to all companies and individuals.

        Like or Dislike: Thumb up 1 Thumb down 0
      • Autobahn on Jun 10, 2018 at 7:29 am

        No ap so that anybody can import their own cars and just pay the import tax and excise to govt…no need to pay profit to recon dealer..

        Like or Dislike: Thumb up 0 Thumb down 0
  • Kronis comes a callin’

    Like or Dislike: Thumb up 23 Thumb down 5
    • Shaikh on Jun 05, 2018 at 3:41 pm

      Kronis>>

      https://paultan.org/2014/08/30/pekema-abolish-ap-affect-revenue/

      Like or Dislike: Thumb up 9 Thumb down 2
      • Takpe new P1 coming soon to continue AP >>
        https://paultan.org/2017/08/25/tun-m-wants-to-start-another-proton-if-pakatan-wins/

        Like or Dislike: Thumb up 11 Thumb down 11
        • Shaikh on Jun 06, 2018 at 11:55 am

          New P1 =/= P1

          And AP will soon be abolished

          https://paultan.org/2018/06/05/abolish-rm10000-open-ap-fee-says-parallel-importer/

          Like or Dislike: Thumb up 3 Thumb down 3
          • Read the article la. Its not abolishing but the AP holders requesting to remove the Rm10k fee. AP still remains. So no diff dulu dgn skarang.

            Like or Dislike: Thumb up 0 Thumb down 2
  • tokmoh. on Jun 05, 2018 at 11:34 am

    Abolish it completely better, free for all, survival of the fittest. All these years of unfair advantage and tongkat, now you’ll taste hard work for real.

    Like or Dislike: Thumb up 26 Thumb down 3
    • that won’t happened… abolish it will reduced gov source on income. you think the sedekah from rakyat enough to fund the gov?

      Like or Dislike: Thumb up 10 Thumb down 5
      • Leafable on Jun 05, 2018 at 3:35 pm

        Yes abolish fuel subsidise will save billions. If not enough put fuel duty like 64% on top will clear the 1 trillion debt in no time.

        Like or Dislike: Thumb up 7 Thumb down 1
      • Hellhole on Jun 06, 2018 at 7:24 am

        Online bud for AP. Market price determines.

        Like or Dislike: Thumb up 1 Thumb down 0
  • Stay Competitive Yourself on Jun 05, 2018 at 11:43 am

    Well, price not always the issue for grey imports.

    As margin for these 2nd hand is huge. Grey importers should provide better package to customers (such as warranty, free services etc)

    Like or Dislike: Thumb up 20 Thumb down 1
    • Yes. They should ensure these cars are reliable. Maybe the Gov should increase the AP and thereby reduce old and auctioned cars flooding into our roads. The rich can still afford to buy directly from the showrooms. The gov then should focus on introducing a friendly law for manufacturing and assembling of foreign cars in Malaysia. in this way, there will be more jobs, more money for the gov, cheaper and reliable cars. Then Malaysia will not be looked on as a dump yard for those auctioned used cars

      Like or Dislike: Thumb up 3 Thumb down 0
  • Earth Rentseeker on Jun 05, 2018 at 11:44 am

    Abolish AP.

    Like or Dislike: Thumb up 32 Thumb down 0
  • AP queen on Jun 05, 2018 at 11:45 am

    Just abolish the AP. Too many loopholes to plug in. Come on PH walk the talk since last time making a lot of noise

    Like or Dislike: Thumb up 18 Thumb down 1
  • Semi-Value (Member) on Jun 05, 2018 at 11:50 am

    bising apa ini….already dulu earn banyak…scrap AP system!

    Like or Dislike: Thumb up 36 Thumb down 0
  • Haha, parallel importers bring in small amount of cars? Look at the vellfire and alphard – its everywhere!
    Govt should abolish the open AP and reduce the taxes so cars become more affordable and local franchise holder can bring the cars in cheaper….

    Like or Dislike: Thumb up 24 Thumb down 1
  • Vulva on Jun 05, 2018 at 12:02 pm

    Dei those franchise sellers have service centres and warranty

    Like or Dislike: Thumb up 1 Thumb down 0
  • Goh Tiong Aun on Jun 05, 2018 at 12:16 pm

    This will encourage Grand Theft Auto around the world. More Toyota Vellfire, Alphard will be gone missing in Japan.

    Like or Dislike: Thumb up 3 Thumb down 1
  • I suggest open bidding for APs restricted only to bumuputras.

    Like or Dislike: Thumb up 6 Thumb down 22
  • fairandsq? on Jun 05, 2018 at 1:08 pm

    Low profit margins ? If you can’t face the competition pls change to other business. In the real world there is no sure profit businesses. Get Real !

    Like or Dislike: Thumb up 18 Thumb down 2
  • rchoo on Jun 05, 2018 at 1:26 pm

    Abolish AP altogether, benefit only UMNO cronies, epitome of corruption. If you need a case Study on corruption. AP is the perfect case.

    Like or Dislike: Thumb up 16 Thumb down 1
  • longjaafar on Jun 05, 2018 at 1:38 pm

    Better still, make APs available to everybody. They should be able to apply direct and pay for the APs.
    The present AP holders can then turn themselves into agents to do the importation.
    If this cannot be done, give out more APs, so that they don’t become too exclusive.

    Like or Dislike: Thumb up 21 Thumb down 1
  • Sonyman on Jun 05, 2018 at 1:46 pm

    Should totally abolish ap itself

    Like or Dislike: Thumb up 9 Thumb down 0
  • Ruslan Bahari on Jun 05, 2018 at 1:49 pm

    Wahhh… under the previous government all OK, can take the charge for years and years… now suddenly because the new government cares, everything is not OK with the previous system…

    Like or Dislike: Thumb up 7 Thumb down 5
    • Geng Cukur on Jun 05, 2018 at 5:45 pm

      According to previous PM, these pipu patut cukurr..

      Like or Dislike: Thumb up 7 Thumb down 0
    • Previously they complain, Najib dun gip and F. Now that they help Bapak back on the seat, its time to get remunerations.

      Like or Dislike: Thumb up 9 Thumb down 4
  • Firdaus on Jun 05, 2018 at 2:41 pm

    Hello brader…we want the whole AP system to be abolished lah…….rent seekers!!

    Like or Dislike: Thumb up 10 Thumb down 0
  • Donno on Jun 05, 2018 at 2:44 pm

    Nope. Retain the fee, but remove those giant AP rent seekers like Mutiara Motors. Reset and redistribute the open APs to small businesses.

    Like or Dislike: Thumb up 11 Thumb down 1
  • Make AP’s available to everyone, government can auction them directly to whom ever wants to import vehicles.

    Like or Dislike: Thumb up 22 Thumb down 0
    • Not Toyota Fan on Jun 05, 2018 at 5:04 pm

      Agree, no more cronies or middle man untung buta buta.

      Want AP, pay straight to JPJ. Gomen get the money 100%.

      Cronies cannot survive after this, well tough luck. Welcome to the real world of business.

      Like or Dislike: Thumb up 15 Thumb down 0
  • Fair? Why not opening the AP to all regardless of race of bumiputera status?

    Don’t talk about fair when you’re still relying on your bumiputera status.

    Like or Dislike: Thumb up 21 Thumb down 3
  • sam123 on Jun 06, 2018 at 11:33 am

    Imagine when AP and high tax are no more, how much will a perodua axia cost?

    Like or Dislike: Thumb up 1 Thumb down 0
 

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