The government has no plans to abolish the open approved permit (AP) system, but says the policy will be reviewed to ensure that it is not abused by parties looking to make a quick buck, according to deputy minister of international trade and industry (MITI) Ong Kian Ming.
He said this during an interview with radio station BFM 89.9 on its Breakfast Grille show yesterday, in which he also touched on the subject of the new national car project (NNCP).
Asked if the government had plans to address the AP issue, which BFM presenter Khoo Hsu Chuang said had artificially distorted the market, driven up prices and also reduced the number of choices for consumers, Ong replied that the policy would continue, but with possible changes down the road.
“I dont think that the AP issue is a big impediment to the development of the auto industry. If you think about the AP numbers, the permits themselves are between 20,000 to 40,000 a year, which is less than 10% of the total automotive market,” he said.
“There are no plans right now to abolish the AP system, I think what we are trying to do is to review the system so that you don’t have a situation where ‘Ali Babas’ are being used in the AP process, whereby people just apply for these APs, sit on it and sell it to somebody else at an inflated price,” Ong said.
He added that the government is trying to review the process “so that legit players are the ones that really contribute to the process of selling cars that cannot be assembled on a CKD basis.”
This echoes the view prime minister Tun Dr Mahathir Mohamad has about the matter. In September, he said that contracts or approved permits (APs) sold to other parties with the objective of reaping quick profits would be cancelled immediately.
Earlier this year, the Malaysian Association of Malay Vehicle Importers and Traders (PEKEMA) said the policy should remain in place. It said the system has helped to keep the automotive industry competitive, and prevents other importers from slapping on significantly higher price tags on imported vehicles.
Some parties have asked for the fee for the open AP, amounting to RM10,000 per used vehicle as imposed by the previous government, to be scrapped. Mutiara Motors executive chairman Datuk Ahmad Kemin had said back in June that the sum is a big burden to both consumers and retailers.
Ahmad Kemin added that removal of the fee would 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.
In Malaysia, an AP is a licence required for the importation of certain products into the country, with items ranging from iron and steel to heavy machinery and motor vehicles.
For motor vehicles, there is the franchise AP, which is used by principal companies of car brands for the official import of their cars, as well as the open AP, which is responsible for most of the grey-import vehicles on our roads sourced from other right-hand-drive markets internationally. The importation of classic vehicles is also covered by the AP policy, for which new guidelines were implemented in July.
A study conducted by MITI back in 2015 had said that the open AP system for the distribution and importation of used cars contributed significantly to the automotive industry and the country’s socio-economic development.
According to the findings, the programme – under the system then – contributed about RM2 billion worth of taxes and fees per year, and also provided supporting sectors such as banking, insurance, shipping and logistics with around RM450 million of business on an annual basis.
What are your views regarding the open AP system, and how can the system be improved, seeing as there are no plans to discard it? Share your thoughts with us in the comments section, but remember to keep it civil.
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“AP system to remain” Lol. Facepalm on all those who voted PH.
“Policy to be reviewed” Only give those that swore allegiance to PH.
Lol
https://paultan.org/2018/07/11/pekema-pertahan-pelaksanaan-ap-terbuka/
The AP system is very bad for Malaysians. 9 out of 10 AP holders bring very high mileage cars down to Malaysia. Most are ex-rental cars that have been trashed by people who rent them. Most have clocked over 200,000 KM on it.
Then these cars come to Malaysia, they are clocked down to 10,000KM and given AutoSpa to clean the engine and do detailing to make the car brand new.
The buyer who buys these cars do not know they are buying a car that has clocked over 200,000KM on it. Just to change the worn out parts alone can come up to few hundred thousand extra for a luxury car.
The AP holders are very clever. In the UK, the price of a used car is based on mileage and not year of make. Unlike in Malaysia where the price of a car is based on year of make.
So they buy 3 year old cars but with super high mileage on it. These are sold super cheap because as I said, in the UK, a used car price is based on mileage.
We Malaysians suffer because we are getting a heavily used car that has its mileage clocked down maximum
its high time to introduce RM70k tax for purchase of any foreign branded car. Improve use public transports, reduce air pollution & congestion, higher public revenue, also better local P1 & P2 car industrie
We have been doing this for 30 yrs but look at the sales of Proton, could not even beat foreign brand Honda. Might as well make Honda our national car to save tax for Malaysians.
Don’t worry, China Geely is now our National car. Your wish has come true.
I don’t trust anything u say though
Of course you won’t trust because AP system only benefits your type.
Obsolete NEP remnants
I don’t buy car using AP..sori
Me neither as well.
By this comment, your agenda here is very obvious, and it got nothing to do with automotive news this site is about.
Your comment is full of made up things that you/your team spend time to come out. Do you know that anybody can check directly with Japan the actual mileage and grade of the car being brought here? Or do you accuse japanese also tamper with their system? UK too. Also, nobody force any Malaysian to buy from AP holders. If anything, AP holders provide better spec and cheaper alternative .
You are no different then the dedak you accuse of. You are worst than them.
I hire cars several times a year in the UK from one of the many international car rental agencies and have never got a car with more than 20k miles (30k km) on the clock. Records show that big UK agencies keep cars on average for only 13 months (2017 survey). This fast turnover of cars is just another way the car manufacturers use to get “barely used” cars on the market, to capture additional market share.
Macai detected. Dude, give it a rest already. Enough with the PH and BN. Grow up will ya? Ur just another empty bucket making a hell lot of noises.
I voted for PH, yeah I lol at my decision. I and many others have lost faith in them after the many pusing-pusing bollywood stories & lame excuses. And I lol at those who still trusted them after all these.
Agree. Those who constantly attack the Gov for nothing just shows their low level of mental and maturity.
Agree. Very much like local unproductive frustrated protest-happy teksi driver
You mean the same local unproductive frustrated protest-happy teksi driver that helped PH into Government? Yeah, I can see all their efforts were wasted.
Give it a rest, eh? So you mean all those discriminating policies back then are now acceptable since your preferred party are in Government, huh? Hypocrite much? Is that how Pakatan operates?
Discriminating policies back then? Really? Who is the Gov back then? If and your gangs like to bash the Gov so much, pls find another blog with your similar kind to do so. This is not the place.
So? The government was changed on the promise of doing things differently, but we now can clearly see nothing has changed except the pockets where the money flows into. What’s the point of changing then? We want meaningful change, not this wayang.
Nothing has changed? For starters, we have GST abolished! And we are getting our GST refunds of RM19.25 Billion. Previous Gov were not able to refund them and need the new Gov to do it. Secondly, motorcyclists are getting toll free for both Penang and Singapore links. In fact, this was a manifesto not fulfilled by BN and getting fulfilled by PH. Last but not least, the Gov will launch a monthly RM100 unlimited travel pass for ALL rail services. Do you know how much savings this will bring to everyone? Also, this will encourage the public to take public transport which in turn reduce traffic congestion. If you still can’t see the difference, i rest my case.
Setuju. our immense frustration of being suddenly caught on a level playing field.
I said meaningful change, not changes that goes backwards like reintroduction of easily abused SST, or change of cronies allegiance like this AP thing. This is not the change that we voted for. If you can’t see this, then I rest my case.
There was an early debate of GST vs SST and some said that GST is ‘better’ as it is a ‘transparent’ system as people cannot cheat the system. So what happened to this ‘front forward’ system when the rakyat’s GST refund is not returned? The rakyat finally realise it’s not the system but the people managing it that is important. Also AP does not mean cronies allegiance as many countries have them. If there is no AP, anyone could import any junk car and sell in Malaysia as someone commented below. Do you want that? If eradication of corruption and having a better managing Gov is not meaningful change to you, then it’s best for you to leave the country and find a better home.
@Raja
This is not what YOU voted for, not we. Don’t use we as we are not you. You can always join the party of who you voted for.
Dont make me laugh, PT. Eradication of corruption? You mean by making cronyism such as AP, halal under PH now? It was a bad idea and PH had campaigned to end this. So what happen to all those words said? I can only see they are better managing the cronies under them. Not eliminate this corrupted practice. This is no different than under Madey regime back then. We voted PH for a better Malaysia not to return to his good old days.
Leave the country if we don’t like? Previously people condemned such statements. Quite interesting when the tables are turned in their favour, they have chosen to act the same way they condemned others.
As many have said it and i will say it one last time. AP does not mean cronyism. Many countries also got AP, all cronies kah?
This is hilarious
Raja was right. PH has morphed into an unrecognisable monster from the one I voted for. If I had wanted AP to remain and for people to tell us we can leave if we don’t like, I and many others would have voted for BN instead. Has the lust for wealth and power gripped PH so soon after becoming the government?
The only review that is going to happen is only paperwork. The AP kings, like any other bloodsuckers will just bootlick to switch host from BN to PH and continue the same privileges. HOPE as usual will remain in star wars.
Govt kowtow to AP kings & Taxi drivers ,
Bloodsuckers remained, they just change to new host that welcomed them with open arms and open skin. WTH PH!
So PH should kick them out and send them back to UMNO? Is that what you are saying?
Ya! So why is PH taking them in?
MAI and MITI forever sleeping. We spend about RM100 million per year to pay and upkeep MAI but all they do is nothing. MAI has been promising us to abolish AP for the past 10 years. Nothing has happened.
This is the New Malaysia now. We do not support people who are always asking for bantuan. If you are poor you ask bantuan, it is OK. But if you make hundreds of million ringgit per annum and you want bantuan all the time….is there logic?
By the way, most AP companies employ only 2 or 3 Malaysians only. Majority are Bangladeshi who wash and start the cars.
Abolishing AP is not MAI job that bolehland govt job lol. MAI can oni give suggestion.
Kami mesti sokong AP. Tanpa AP, kami tak boleh dapat kereta power di Malaysia
Kami harap syarikat AP akan lebih di Malaysia supaya kami dapat kerja
Ini saya setujui
saya jua setujui
just like 1.6 Goverment servants- give free jobs
Copy pasting “Without these 1.6million Government servants, who will keep you safe at home, put out the fires you inadvertently started, ensure your security, keep you healthy, and enable you to travel?
You might as well stay in a cave and never come out.”
U should know more than 1M of them are teacher, army, police, doctor, nurse, engineer, Bomba, sprm, state worker, apmm etc
Is our ex-PM considered a public servant?
Nope. None in any governments in the world. Politicians are elected, public servants are hired.
Yes, i’m curious of the question posted by Curious too, can kzm the wise answer it?
Bodoh ! AP very good example making a lot of easy money without having to work or work hard .
Left hand get AP and right hand sell AP. Untung Sahaja tak payah pening kerja. How can Malaysia progress with this sort of LAZY policies still in place – refuse to remove?
Want to be again Asian Tiger. Plz do not dream about it anymore. Now is 2018 not 1980 where selling AP in 1980 Malaysia still can be one of Asian tiger but not now. In 1980 , our Malaysia Dollar (MYR) was very strong on par with SGD. Now our MYR had becomes Ringgit.
(RM) . RM got no strong value just like Banana value.( No value and no demand overseas)
World had changed and China had come up but Malaysia cronies still persist with tidak payah kerja attitude in getting easy money by selling licensed .
Hopeless Pakatan Harapan . The next 100 days will be making a BN 2.0 come back.
All these ministers are worthless and they cannot influence the Rakyat still. The ministers are all starting on the wrong approach except catching corruption ( they are only good at the moment but cannot put big fish into jail yet)
What a Nonsense Pakatan government we had voted. Still a useless choice again
Previously go right pocket, not go left pocket. Sama saja lah! Politicians are politicians after all. Harapan to save the AP holders but not the rakyat.
So called new government but same old cronies
But u know the same cronies jump to new Gov right?
So now cronyism is acceptable, is it?
We want elimination of cronyism, not for the cronies to change masters and continue business as usual. This is not what Malaysians voted for. If Pakatan Harapan can’t even do that, then better don’t govern.
Since when AP means cronyism? AP is just a permit like many countries which have them. Cronies are the ones stealing from the rakyat, not the permit.
Uturn Government does another Uturn. Bravo!
Ini saya setujui
Copy paste “Ini saya setujui”
Lol
It will take at least another two generations to abolish tis money making scheme, nobody dare to touch them
Well, if the 3rd generation can turn air into money, then they no longer need the AP system.
What do u expect? The 1st generation is back in charge. Expect 1st generation schemes la. Next time vote for new gen if u wanna new scheme
Those AP kings are already rich. They are suppose to know what to do with their money and not depending on selling recond cars anymore. Give someone else a chance. That’s what this AP system supposed to benefit. To create new entrepreneurs instead of enriching selected few.
By the way in the 80s we can get reasonably grey imports like Honda Accord Vigor (of 1984 accord 1.8), Mitsubishi galant sigma (super touring body) and maybe BMW E28.
Why is it nowadays the focus is only on vellfire only and some expensive high end sports cars? Damn you AP holders.
Under new AP system, AP holders should import recondition normal sedans and hatchbacks below 2000cc like those Parallel Importers (PI) in Singapore. Then it will benefit medium and lower income group with variety of affordable quality recond cars and not only targeting high income group with those luxury MPVs, SUVs and High Perfomance Cars.
I think there should still be a fee for the AP to cover admin costs. So RM 10K is pretty reasonable since most cars sold under this category cost a lot more than your Persona or MyVi. Also, make open APs non transferable so that the company that applies for it must use it on the cars they sell. APs should only be issued once the imported cars arrive on our shores.
Open the Open AP to everyone, so anyone can import their car of choice. But do in a transparent and professional manner.
Eg; Ali buys car from japan auctioneers and has it legally registered in japan under his name, bring the car back to port, send car to puspakom for approval, once approve, charge 10% of the purchase value (yen) for Open Ap instead of RM10k, charge 6% SST for puspakom inspection, charge 6% SST for Port handling fees.
This way government and selected people can maintain whatever they are doing, and everyone who have the time and doesn’t mind the hassle can import their own cars. Rich people who import exotic cars will also need to pay more taxes, example a rm6m bugatti = rm650k taxes, whereas a rm60k kei car = rm6,500 taxes.
Why does this work for everyone? Question: how many people can afford to travel to a foreign country for almost a month to buy a car in a foreign country?
So, Current AP holders happy, tabung government happy, rajin people who go through the effort to get the car back happy, everybody wins!
Rakyat is not happy to pay for expensive cars!!!!
PH EQUAL BN. It seems everyone G is the same story line. Before election, all agreed. After election all become faded away. Old Malaysia or New Malaysia = Same Malaysia. Well, just sit back and wait for 5 years term and we will decide.
AP to remain? loop hole for corruption and favouratism again. Regret to vote Pakatan, have to vote for a clean opposition next time.
Yes. Really regret.
Then why are you still staying here? Pls move to a country where you have no regrets i.e. Indonesia.
You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time.
We are wiser now and we will know what to do with the broken promises said by PH.
“There has been an awakening. Have you felt it?”
The pipu have begun to awoken from the false hope of Harapan.
Fool who? If you dislike the policies of the Gov, you should move to a place where you can agree on, instead of using smear tactic to bing down the Gov. The rakyat is not fools as they know where their money is gone by the previous Gov. Broken promises cannot be known with 6 months of ruling, unlike 60 years of previous Gov.
I voted for a better Malaysia for all Msians and all the crooks thrown into jail.
Smear tactics? Wasn’t that called speaking the truth before GE14?
Money is gone? certainly better than P3 and unnecessary crooked bridge.
Broken promises cannot be known? Here is what was reported by PT: “This pretty much puts paid to the proposed abolishment of all tolls” (Budget 2019: Toll hike freeze on inter-city highways).
PH fansies still in denial?
@G.Shanti
The crooks are now in Parliament & in the Ministry. Last I heard, the police & court of justice is also under them. How to throw them into jail then?
broken promises of PH is not as bad as corruption the past 60 yrs. It is choosing the lesser of 2 evils.
See how we were raped 60 yrs?? Corruption out of control!
Awakening? You are still sleeping supporting the obsolete previous 60 yrs administration. It’s time to move on.
“It’s time for the Jedi to End”
Before GE 14? Hello, this is after GE 14.
Money is gone? So you happy that the rakyat’s money is gone? o.O
Abolishment of tolls? Yes, they said abolishment of tolls but did they said when? No hike in toll is a good start. Moreover they are abolishing the tolls for motorcyclists of PG and SG bridges next year. Certainly better than 60 yrs of BN broken promises.
Does this look like fantasies to you?
Between choosing a beast that was being fed for 60 years and a beast hungry for 60 years, I rather choose a beast that had his fill. Why do we want to repeat the same mistakes with Pakatan?
tepuk2 joe
None so blind as those who refuse to see.
Take heed, blinded PH supporters.
Deaf as those who refuse to listen.
Listen up, BN troopers:
AP is not cronyism. Cronies are those who steal from the rakyat like your beloved leaders. AP is just a permit. If you still want to continue with your smear campaign to confuse the rakyat, your party will not last long.
If the beast had his fill, why would he keep devouring the rakyat’s money to become his wife’s jewelries and handbags?
None so deaf as those who refuse to listen. So listen up, BN troopers. Your smear campaign is wearing thin and old. Time to be more productive instead of typing nonsense.
Sometimes when you shave your head, you become smarter.
But most of the time, you stay the same.
Haritu bukan main lagi crticised AP system. What the fish is this #sayaundikenaPHuiii
AP not to be abolished?? What a letdown PH!!!!!
Ya…we can continue to bash the U turn from the new Govt and telling them we gonna change them 5 years later. But My question is….Who else to vote for?
I am not pro/anti PH/BN…I genuinely have no idea and need guidance…
We could have spurned PH & give it reason to reform itself to be more altruistic in its fight. But instead, they thrown their integrity away to partner with those same corrupt politicians they used to scorn, all for the ultimate goal of wrestling power with whatever means possible. [The road to h3ll is paved with good intentions].
it’s been review over and over and over again. At the end of the day. AP still remain.
Abolishing AP is the worst thing u can do. Any Tom, Dick & Harry would be able to import any car, regardless if its a piece of junk or not and litter the whole country with abandoned scrap. Malaysians are selfish bunch so no choice must have some form of control.
Betui! Finally someone who realise something than all the Gov bashers.
Just the other side of the same capati. What’s the difference!?
i think u dun understand AP and distributor..
As long the imported car needs to be Puspakom inspected b4 can register for use on the road, is that even a problem? Not all old cars are junks as classics would be well kept and still roadworthy.
I do agree some form of control is needed. Above comments showed how some PH ardent folks are poor at receiving criticsm with regards to their preferred party’s integrity and reason for existence.