The ministry of international trade and industry (MITI) has issued another statement pertaining to the matter of open approved permits (AP). This is a follow-up to an earlier statement it issued on March 13, which announced the implementation of a new open AP policy from January 1 and revealed that 36 new companies had been appointed as AP holders.
Questions have been raised over the latter, not surprising given that one of the main contentions about the implementation of the AP policy in the past has been allegations of abuse in which these APs have been given to a small number of well-connected individuals and companies, which then quickly sold the APs to other parties for a quick profit.
In today’s media statement, which was made by deputy minister Ong Kian Ming, the government said it aims to be fully transparent on the issuance of open APs for vehicles and motorcycles, and that the Pakatan Harapan government was committed to ensuring that only genuine Bumiputera entrepreneurs are able to obtain these APs.
Detailing aspects of the policy as well as the requirements, Ong said there were stringent conditions by which existing AP holders as well as new applicants were evaluated before their APs were issued in 2019. Among these were that the business:
- Must be 100% Bumiputera-owned companies based on their registration with the companies commission of Malaysia (CCM).
- Must have paid up capital of at least RM1 million.
- Must have experience of at least two years in selling and distributing motor vehicles.
- Must not have directors / shareholders / management team with shares in other companies holding open APs.
- Must have a minimum of five full-time staff in management, marketing and the technical departments.
- Must have a suitable showroom and office.
- Must have the financial and managerial capabilities to operate a business to sell imported vehicles via open APs.
He added that once a company has been allocated open APs, it must then comply with the additional requirements:
- Any change in the equity holdings and the directors of any company must obtain the approval of MITI before this can be executed.
- No usage of middle-men or intermediary companies to sell these open AP vehicles.
- Opening of new branches to sell vehicles obtained via the open AP must have the approval of MITI.
- The vehicles must be displayed or stored in a MITI-approved premise.
- The documents for importation (bill of lading / airway bill) must not be more than one month from the date when the company submitted its AP application to MITI. The name of the company in these documents must be the same as the name of the company in the MITI application and approval forms.
- The company must produce the import and sales figures as well as the record of inventory to MITI before the 10th of every month.
- The APs must be used in the year of approval which is before the 31st of December every year.
- The company must prepare a warranty of at least one year and have an agreement with the original equipment manufacturer (OEM) to provide after-sales services.
Ong said that as a result of these stringent application and approval conditions, the ministry only approved 164 out of 282 applications that were submitted. Out of the approved applicants, 128 are existing companies and 36 are companies which previously did not receive any APs and thus termed as “new” companies. He added that out of 109 applications by new companies, only 36 were approved.
On the issue that of there being no limit to the overall number of APs to be released throughout the year, Ong clarified that although there are no longer hard caps on the number of APs which can be issued in one year, there are definitely hard caps on the maximum number of APs which a company can obtain.
He explained that for companies that have not obtained APs in the past and which have a paid up capital of RM1 million, the maximum number of APs for passenger cars that can be obtained is 60 per company. For existing players with a paid up capital of RM2 million, RM3 million, and RM4 million, the maximum number of APs which can be obtained by these companies are 120, 180, and 240 respectively, as listed in the table above.
The rationale of capping the number of APs for companies which have not received APs in the past is to ensure that these companies have the financial and sales capability to sell up to 60 vehicles first in their first year before they can increase their quota of APs in the future, based on their paid-up capital.
Ong added that the total number of open APs issued by the government has not breached the 30,000 mark over the past two years, and this represents only about 4.3% and 5.3% of total passenger car sales in 2017 and 2018 respectively, as highlighted above.
He said that open APs are issued mostly for the higher end of the consumer market segment, where low volumes do not provide enough economies of scale for them to be assembled in Malaysia. With the large majority of passenger cars on the road – including that of foreign brands – being assembled locally, he said open APs have no effect on mass market car prices, given the low numbers.
He added that the localisation of the domestic passenger car market and the accumulation in the stock of luxury cars as a result of slow sales meant that APs are no longer as commercially lucrative as they once were. With a RM10,000 price tag per AP, plus the investment needed for showrooms and paid up capital, only genuine and competitive players can remain in the market.
The full list of all 164 AP holders can be found on the MITI website, here.
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I thought TAHB auto is Chinese owned, same ownership with VW cergaz autohaus?
Can you please list down all the names. So that not in the list can be reported and actions can be taken
Syukur Malaysia so peaceful. Rakyat afford to buy luxury cars, alphards, x70 go balek kampung. Petrol so cheap, smartphones so laku. KFC McD so full, economy so good.. Syukur
APs just make a few richer. This is the wrong way of awarding contracts.
Majority still want to get easy money without putting in sweat. This must change.
30 AP Members get richer at the expense of 30 million Malaysians. Mana adil?
Smarter humans can get easy money without putting in sweat. Less smarter gotta work harder. Its a fair world
Every year MITI and MAI promise us going to abolish AP.
But when MITI staff themselves don’t to abolish it….how?
All kakak, abang, adik, atuk……all AP holders
38/50 richest Malaysians are not from the majority. Most of them will gladly take money from the majority but will never hire one, citing flimsy and nonsensical excuses to exclude hiring the majority to high paying top jobs, like the need for fluency in a foreign language other than English to conduct business in Malaysia….
Mana Adil?
Too many lazy people in Malaysia who just want free money and free contracts.
Time for these people to wake up and work hard like how the whole world is working hard.
NEP dan APs berpisah tiada. so no komplen
more precise NAP and APs berpisah tiada
Every year MITI and MAI promise us going to abolish AP.
But when MITI and MAI staff themselves don’t to abolish it….how?
All kakak, abang, adik, atuk……of AP holders
This is why Singapore is far ahead of Malaysia. They don’t have this favourtism system.
I just wish everyone is equal
We must learn to be like Singapore where everything is merit based. I hope we learn meritocracy. It will help us become first world.
2020 is next year. We are supposed to be developed nation by 2020. 10 more months.
Although 61 years passed, privileged majority gotta hav more time, concessions and opportunities especially to emerge a competitive global player. Instead of just kontrak kampung champion.
You need AP to import cars into singapore too
Boycott AP vehicles. Why have covetousness to have and own impotent cars?
Next year is 2020. 9 more months we become DEVELOPED nation status. Same as UK, US and Germany.
Yet we practice all this.
Every year past 20 years they say abolish…..nothing done. Now worse, they increase more AP
This a social contract from 61 years ago. We must respect our previous elder leaders.
Yup. And those countries also practice, what was it Teresa Kok said…??. “political of protectionism”- when they block out our palm oil…. Not so “free/fair” trade after all.
Why wait rakyat go report provide evidence??? Its Gomen responsiblity to provide evidence that all AP not selling AP. Gomen agency pls go audit transaction all AP company and come out report, transparently…
Good citizen always proactive and reports any matters will be detrimental to our nation. Citizens shall not stay in comfort zone and shall not keep a blind eyes when any hanky panky is happening from superior, employer, colleague, peer, friends or relatives. Citizens with check and balance attitude makes a nation peaceful, prosperity and progressive.
There are about just 20 AP holders. All using different names and companies. So in total it is not 100 over.
These 20 are all billionaires each. Enough said.
Enforcement officers also got interest. Their isteri or kakak mertua or abang ipar is the AP holder. Susah nak tangkap family bro
We vote them , to work for them. Seems like they forgot how they won the seat.
It is no big secret lah. Past 20 years everybody also know that those who get the AP sell of the AP. Nearly all the AP holders do this.
Go and investigate. Those receiving AP just goyang kaki and sell the paper for RM40k each.
Time to stop this lazy behaviour. Easy goyang kaki and make others do the hard work for you
Everybody must work hard. Those who are lazy need not be given business opportunity
Better give those who work hard.
Later people like john complain about working hard. no lepak and minum teh all day anymore
How long are we going to support this laziness? Just few people doing all the work but others take the credit?
One vvip politician said”Lazy…lazy…lazy’…who is monitoring these AP holders with all the conditions attached?…People r selling Rm 1 nasi lemak to put food on the table.These people literally r getting fat handouts.Pakatan Halangan ….u turn time n again….just pathetic
The whole purpose of AP was to give the Bumiputera entrepreneur to enter the car market and car industry and give jobs to Bumiputera in the car showrooms
But the truth is, the Bumiputera AP holder just sells the AP to the Chinaman.
Go to any AP showroom, you hardly can see any Bumiputera working there. Infact, there are mostly Bangladeshis cleaning the cars and on or two Chinaman running the show.
Let us face facts. Paul Tan may not publish this because it touches on race but facts are facts. The whole purpose of AP system was to enable the Bumiputera to enter the car market.
So, if there are hardly any Bumiputera working in any car showroom, it looks like the “spirit” of this enactment is not met.
Why even have the AP system when the AP paper is being sold immediately?
I challenge the Minister to visit every car showroom in Klang Valley to see what I have written is true.
If not, just abolish it. After all, it increases car prices for 35 million people!
Total agreed. AP system totally against the “spirit” of International Convention on the Elimination of All Forms of Racial Discrimination (ICERD). So government reject ICERD to protect our biz interest, kudos to Gov!
as if ur side wants ICERD also… diam la
This is why Indonesia, Thailand and Singapore have overtaken Malaysia.
Everybody wants to invest in these 3 countries.
Philipines will overtake our economy by 2023.
We rejected the ICERD to protect the lazy
Ghani, UMNO-PAS, aka the only pembangkang which you guys support, is 100% against ICERD too.
Only handful/few renegade countries rejected ICERD. 95% of world ratified ICERD. Most rejected are African nations like Congo. We also one of them
well said and well written! You have my LIKE!
Minister say AP got no effect on car prices for mass market.
Hello Minister, do you know why UMW charges nearly RM500k for the Toyota Alphard?
It is because AP holders already charging RM300k and above.
The Toyota Alphard in overseas is not this expensive la
Same applies to MBM charging for their Mercedes. AP holders already charging so high prices, so, MBM also keep their prices even higher
Agreed. That’s why the RM500k Toyota Alphard whoever bought now will only have RM150k resale value three years later.
Make no mistake I am all against AP as well.
But bang, ur comment got proof kah? Coz itu tak ada make sense to me. If I were UMW or MBM, I wouldn’t mind selling my car at lower price as long as it doesn’t affect my profitability. Isn’t it even better for me if my NEW CAR price is close or even lower than AP car. Man, who is going to buy from a recon or used car then? Everyone will buy from me right? I am all the sales right? I untung lagi bagus right? Ini baru la ada logic…
We should do away with this AP. How long is this tongkat system going to go on?
I prefer to buy from sellers like Perodua. At least I help my local car company
You help us but we only help Japan when all profits goes back to Japan and we learn nothing.
When you can’t convince, you confuse.
Uh huh, we the rakyat absolutely believe & trust what you say above.
Just like we believe & trust there actually is a Santa Claus.
Seriously, you Ministers really think we the rakyat are really THAT stupid huh?
“Seriously, you Ministers really think we the rakyat are really THAT stupid huh?”
Well, majority of rakyat did vote them in, yes?
Seriously
https://paultan.org/2018/07/11/pekema-says-that-open-ap-system-should-continue/
Open import car to all registered automobile companies. Impose suitable tax straight to each imported car.
Done. Over rated profit to AP holder is not healthy.
Rakyat force to buy over priced car.
When is this AP system gonna stop? Please stop this kind of business system. Its so lame, one sided and full of corruption and abuse.
Too much of abuse and cheating. Always under declaring to Kastam.
Enough is enough. Give this people help but they cheat the Government of revenue
AP is like giving free money away.
MITI should charge for every AP and make it available for public.
Money earned should be channeled into business development loans , even interest free if deserving, if they were really serious about developing entrepreneurs.
Making money from free money isn’t a business.
But we all know what the real reason APs are for.
MITI shall open tender every AP for citizens, similar to SG version of COE ?
Does anyone know how much the AP application fees for the bumiputra? and how much are they selling each?
Can’t wait till Monday when people get to know that AP cars’ prices have gone up RM10-15k since 1st March….!!!
it is not about a more strintgen process has put in place. It is thia practice do not bring any benefit to whole rakyat but few cronies. This should be abolished but what a shame that the new gov did not listen to the rakyat
it means that some of us still need to pay higher price for the almost tampered car mileage in our domestic market. thought this system will end after may 2018, unluckily it was another day dreaming.stuck to talk..by the way,congratulations for the 30, absolutely they are not an ordinary malaysian
haha…. 100% bumi again… hahahahaha… what a joke
Malaysian know nothing about automotive industry. Only Tun M knows.. Malaysia really need 3rd national car..
how many of these AP companies being tax?!
how all these cars companies use depreciating cost and escape tax and still can sell high?
Ingress, NZ is in the list
Auto Bavaria, Hap Seng, Quill is not..
100% bumiputera already unfair to all malaysian. How bout the company must be 50%malay, 20% Chinese 20%indian 10%other races, make it fair.
Does ordinary Bumiputra on the street benefit from this AP? No. You are just enriching the rich.
nothing has changed, still the same tongkat policy for cronies.
failed government.
everyone work like shit so these leeches get AP money easy.
This government actually quite good, lots of listening and responding to rakyat’s request for transparency
Why keep deleting previous post and keep updating it with more and more explanation.
I repeat again here, this is proof that all they used to shout about is not being handed one. Give them one and they will be quiet like a baby.
Please don’t make this an issue again once we vote you out.
Boycott AP vehicles. Easy. Peace of mind.