The Malaysian Association of Malay Vehicle Importers and Traders (PEKEMA) has expressed its concerns over rumours circulating about that the Pakatan Harapan government might abolish the Open Approved Permit (AP) system. The association is defending the system, which it says has helped to keep the automotive industry competitive, the Malay Mail reports.
According to its president Datuk Zainuddin Abdul Rahman, the system prevents other importers from slapping on significantly higher price tags on imported vehicles. “They cannot simply increase the prices of imported cars as they wish because they need to remain competitive. In order to do so, the other importers must match the prices offered by AP holders,” he told reporters yesterday following a meeting with the Council of Eminent Persons (CEP).
He added that the abolishment should not materialise as it would be against Article 153 of the Federal Constitution which pertains to the Special Position (SP) of the Malays and the Natives of Sabah and Sarawak.
“Tun Daim Zainuddin said many wished to see the system being abolished but I told him to take into consideration the money involved throughout the years. I myself have spent over RM20 million on my showroom and the land. It will not be easy for the government to do away with the system just like that. Why would they abolish a system that stays true to what is dictated in the Federal Constitution? That’s unfair,” he stated.
Zainduddin also urged the government to waive the RM10,000 levy imposed on Open AP holders, something the association has asked for before. He said that the association had not received any of the returns promised by the previous government, although some RM2.7 billion was supposedly collected from 2010 to 2017.
“There are about 800 types of AP in Malaysia and only an Open AP is charged with a fee. It is easy to calculate. The government collects RM10,000 from 35,000 AP holders, so it means they get RM350 million a year. The previous government promised that Pekema members would get 40% of the fee collection for business development purposes, but it never came true,” he explained.
Zainuddin claimed that former minister of international trade and industry Datuk Seri Mustapa Mohamad had in a meeting promised to distribute 40% of the collection to Pekema members, 40% to bumiputeras who wish to join the industry and 20% to the Malaysian Automotive Institute (MAI). “Not even one percent of Pekema members got it, new bumiputera industry players got nil, and only MAI got their allocated 20%,” he said.
The system was supposed to be discontinued by December 31, 2015, under NAP 2009, but the arrival of NAP 2014 left the date open ended. It was announced in mid-2015 that the open AP system would be retained, but improvements to the system were to be made. These were introduced last year, with new rules and requirements put in place.
Looking to sell your car? Sell it with Carro.
Nonsense! Article 153 doesn’t guarantee your privilege on vehicle trading. And abolishment of AP never jeopardised our rights as indigenous people of the island of blunai.
Island of Brunei? Since when did Sabah & Sarawak cede to Brunei?
Soon if some VVIP of pro article 153 dibebaskan
30 Million people just because 30 PEKEMA members want to or already BILLONAIRES.
What for?
Set up a counter at MITI. Anyone who wants to import, just pay straight to the Government. Simple as that.
As for shipping, Government also can set up another counter for shipping and insurance.
Why we need a middle man?
RM350 million collected a year. 20% to MAI, Thats a cool RM70 million^^
How long to these people, GLCs and Putrajaya want tongkat?
In the 80s and 90s, Malaysia was heading to be the Detroit of Asia.
But because of all the AP issues, all car companies went to Thailand instead and made it the Detroit of Asia.
The past 30 years, Thailand has got about 1 TRILLION in investments plus few hundred thousand jobs.
We missed all that.
The 1 who oppose the AP abolishment is normally the one who support monopoly. Abolish the AP system wouldn’t increase the import car price. In fact its the other way round and it’s create more competitiveness and benefit the consumers.
If dun sapot monopoly, it means the gov dun care for the poor. Such as the propaganda spread by the opposition now.
Cut out the middleman. Go for Open bidding of Approved Permit (AP) via MOT online.
PEKEMA members all know, their days are coming to an end. Now got New Government.
Poor PEKEMA members. Cukup lah, you guys already made billions each. Time to give up all this free money
if they want to increase then increase la, see if anyone will buy from them or not.
Without Open AP will make the market more competitive, not retain it to make it competitive…..
And you have spent 20 millions on your showroom, but how much you made from it??? mind to share a bit?
Dah berkurun kutip duit AP, tak cukup-cukup lagi ke? Sampai bile nk jual kereta Recond (second hand) dgn warranty Opal kau yg tak boleh pakai?
Bapak too agrees.
https://paultan.org/2015/07/02/tun-mahathir-takes-a-swipe-at-mai-on-auto-policies/
Cukurrr la ckit pekema oii.
Sorry, John. I read the 2/7/2015 article and nowhere does Dr M say that he supports the awarding of APs to a privileged few.
Does this article talk about awarding APs to a privileged few? Perhaps u din read this article properly either.
Abolishing AP is GOOD for the industry but its NOT Good for those who abuse it :P
If an AP holder is poor, then something is very wrong here. Nonsense. Affirmative action is good if the target is right, but too many cases have been abused.
RM350 million a year. 40% to Pekema members, 40% to bumiputeras and 20% to MAI. RM70 million a year donation to MAI.
These people are trembling worrying about their rice bowl. Can’t blame them. They have no real skill to survive in real world, good for nothing. The association name reflects their intelligence level.
As long as there is people like these Malaysian Association of Malay Vehicle Importers and Traders (PEKEMA) who have Race or Religion in their association name, things will NEVER be fair or competitive.
If one is used to being spoon fed it is difficult to start feeding oneself.
Always hoping and depending on government support. Too much comfort in life. What has AP to do with the Federal Constitution?
Remain competitive BS. More like enriching these rent seekers making money doing anything.
Tongkat policy, the citizen should admit our nation will never improve if this kind of policy still can exist
Let’s call for a rally to get rid of this idiots. ..after 40 years still talking about their rights..business middle men haram jadah.,everyone should b entitle to ap to import cars from anywhere in the world as long as they pay the relevant taxes imposed by our government ..what so special about u people..??nama pun bunyi macam samseng!
“… I myself have spent over RM20 million on my showroom and the land. It will not be easy for the government to do away with the system…”
Any business will grant you a BIG profit??!!! Of course we in Malaysia can name quite a long list.
Me first,
1) PEKEMA
Yes Open AP should continue… and be given 5 for EACH Malaysian with additional 5 for EVERY bumi… that’s very fair don’t you think so? So everyone can import a minimum of 5 cars with the AP… those rich ones will definitely want to import more than their original provided 5 AP so PEKEMA can get money from them.
Woi Datuk Zainuddin, menghapuskan AP utk kebaikan 30 juta rakyat malaysia lebih baik dr dok fikir pasal kos showroom kamu.
PUKEMA still wants open AP, it will be interesting to see if the Malaysia Baru govt is any different or Baru at all.
TOLAK PUKEMA !
Industri Automotif apa ni kalau bawa masuk kereta recond! Jadi middle man. Cuma few macam NAZA dan Westar yang berjaya sampai dapatkan manufacturer license. Yang lain dari dulu sampai sekarang duduk camtu. Sibuk yang Melayu pun bawa kereta AP jaja kehulu hilir cari projek, hantar anak ke sekolah, lepas tu membawang tunggu anak balik. Sibuk megah jadi businessman jual kereta AP with government protection
I suggest Open AP to be an open bidding process on limited AP. The government can get revenue and crush the monopoly on these people at the same time.
Naza started with some help like this but today they became competitive enough. That is true entrepreneurship .