Looks like MITI is assisting more Bumiputera companies to become Car AP Kings
Yesterday, 18th June 2024 Malaysian social media was buzzing with news about the Ministry of Investment, Trade and Industry (MITI) opening up the used vehicle (recon car) open approved permits (AP) for new Bumiputera companies, even ones that have NEVER been involved in the automotive sector, starting July 1, 2024.
In case you were wondering, an open AP is an import permit/document issued by MITI to approved Bumiputera companies to import reconditioned vehicles (luxury vehicle from Japan and UK) in Malaysia. The easiest way to explain this money making document is shared below.
Yes, AP is also for a large number of products which means Malaysians pay more for all the items stated in the above document as a large sum of money is ‘ADDED ON’ which the Malaysian consumer, YOU and ME pay.
Yes, we pay extra and above what other countries in the region pay for the same products because of AP holders who control these above shared list of items.
This is why cost of living in Malaysia is rising.
So, if you remove the AP’s in the list shared above will prices of all the above mentioned items go down?
You understand what’s going on here for decades? Who was the engineer of this AP system?
Certain individuals are earning millions or more from 99.99 percent of the Malaysian population.
Meanwhile with regard to the car AP business, it is a business that provides easy money for AP holders as the vehicles from Japan and UK are NEVER reconditioned and instead they just get washed and ready for sale.
Tires, engine and brake systems are left as it and the vehicles might at best get serviced or a ‘checked’ light sorted out at the most. Ready for sale without a ‘FACTORY’ warranty and any form of ‘FACTORY’ after sales.
Meanwhile, news was buzzing that MITI said the initiative is to open up more opportunities for interested Bumiputera entrepreneurs and in line with the ministry’s efforts to improve inclusiveness and transparency in the open AP application process.
In a statement yesterday, MITI said that “The main objective of the government is to continue to empower the Bumiputera socio-economic agenda by providing opportunities for more competitive Bumiputera entrepreneurs to be involved in the automotive sector.
The implementation of the new policy is expected to attract more Bumiputera companies to engage in the automotive industry, MITI added, saying that the increase in the number of companies will make the segment more competitive.
The companies will still be subject to the main conditions for an open AP, including having a private limited status, being 100 percent Bumputera-owned, having a minimum paid-up capital of RM1 million, and having been in operation for at least two years.
Interested and qualified Bumiputera companies are encouraged to apply for the permits from MITI Guidelines, application forms and checklists for the application may be found via https://www.miti.gov.my/index.php/pages/view/3796
