Open up AP licensing to non-bumi companies too, says business group

K. Kabilan

Miti announced that it was relaxing the AP requirements for the automobile industry to allow more bumiputera companies to participate. – The Malaysian Insight file pic, June 20, 2024.

THE government has been urged to allow non-bumiputera companies to be appointed as an open approved permits (AP) company to engage in vehicle importation and sales activities in Malaysia.

The government has relaxed the AP licensing requirement effective July 1 to encourage more bumiputera companies to participate as an Open AP company, including those that have never been involved in automotive activities.

An open AP is an import permit facility granted by the Investment, Trade and Industry Ministry (Miti) to qualified bumiputera companies to import reconditioned vehicles for sale in the domestic market.

At present it is restricted to licensed vendors.

The Johor Indian Business Association (Jiba) said the opportunity must be given to all companies and not just for bumiputera companies.

Jiba president P Sivakumar said that there were many eligible non-bumiputera companies, including Indian-owned businesses, that could engage in the sector.

“The government must show a level playing field and ensure fair play by opening up the sector to non-bumiputera companies,” he told The Malaysian Insight.

Speaking specifically about Indian businesses, Sivakuamr said the Indian community had shown their strong backing for Pakatan Harapan for several general elections now.

“Not just the Indian community, but also the Indian business community had stood with PH, and they are also strong supporters of the current unity government.

“We hope there will be a fair distribution of wealth among the various races in the country,” he said.

He said that the government and Miti should have fair policies that are inclusive.

“I appeal to Miti to include other races in its ambition plan for the auto industry,” he said.

Sivakumar aded that Jiba was not questioning Malay privileges but was merely asking for inclusive participation to also help other communities progress economically.

Earlier this week, Miti announced that it was relaxing the AP requirements for the automobile industry to allow more bumiputera companies to participate.

It said the move was in line with the ministry’s efforts to continue 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,” the ministry said in a statement.

The ministry said interested bumiputera companies must have sendirian berhad (private limited) status, have 100 percent bumiputera ownership, have a minimum paid-up capital of RM1 million and be in operation for at least two years.

The ministry added that the government’s main objective was to continue empowering the bumiputera socioeconomic agenda by providing opportunities for bumiputera entrepreneurs to be part of the automotive sector.

It added that the Open AP policy which has been in place since 1970 has successfully produced viable bumiputera companies in the segment of importing and selling vehicles, and in key activities along the supply chain such as after-sales service, insurance and logistics. – June 20, 2024.

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  • APs are not exclusivity to Malays but to all it to ALL. It's about time plus past APs has only created quick selling and non hard working AP holders ..

    Posted 1 month ago by Crishan Veera · Reply

  • I thought the Mandani government wanted to move towards more income-based affirmative action policies versus race-based policies - or was that just all talk?

    Posted 4 weeks ago by Market Realist · Reply