Pekema welcomes opening up of open APs to all bumi companies, but wants controlled selection and total

The Malay Vehicle Importers and Traders Association of Malaysia (Pekema) welcomes the government’s plan to open up eligibility for open approved permits (APs) to any bumiputera company from July 1. However the association wants stringent selection of capable companies and tight control of the total number of companies given APs.

“The total number of open AP companies has to be carefully controlled (dikawal rapi) to ensure that the automotive industry remains competitive. This is important to avoid a glut to companies that might not be competitive in the market,” said Pekema president Datuk Hj. Mohamed Nazari Bin Noordin.

“Stringent selection (pemilihan yang teliti) has to be done to ensure only the companies that can positively contribute to the automotive industry are given the chance, with emphasis on quality and not quantity,” he said, adding that priority should be given to companies that are truly qualified in terms of experience and financial capability.

Pekema welcomes opening up of open APs to all bumi companies, but wants controlled selection and total

The parallel importer club boss stated his worry that if companies given APs do not have the enough experience, it might lead to big losses as the ‘recon’ car market has high depreciation. He ended the statement by suggesting that the government’s plan to have more open AP companies undergo more studies before being fully implemented.

Yesterday, MITI announced that effective July 1, any bumiputera company can apply to be appointed as an open AP company to engage in vehicle importation and sales activities in Malaysia. The ministry said that the move is in line with its efforts to increase inclusiveness and transparency in the open AP application process.

“The implementation of this policy is expected to attract more bumiputera companies to engage in the automotive industry. The increase in the number of companies will make this segment more competitive,” MITI said in a statement.

Any company that wants to secure open APs must meet several conditions, including having Sdn Bhd status, 100% bumiputera ownership, a minimum paid-up capital of RM1 million and be in operation for at least two years.

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