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KUALA LUMPUR, March 13 — There is no limit to the number of approved permits (AP) to be released throughout the year under the new open AP policy implemented from January 1, 2019, said the Ministry of International Trade and Industry (Miti).
In a statement today, the ministry said companies might apply for additional AP based on their sales performance.
“At the moment, most of the new companies are still not fully in operation as they need to fulfil some technical requirements and be prepared for business operational matters,” it said.
An automotive portal recently alleged that the government had approved 38 new open AP holders, most of whom were said to be not in the car business and were simply looking to sell their permits to established AP holders. The portal said the established AP holders’ annual quotas were reduced to accommodate the new AP holders.
The ministry said it received nearly 300 applications when an offer for application to become an open AP company was made from May 23, 2016, to June 21, 2016.
It said after an evaluation process, including an audit by a qualified independent auditor, the number of companies that qualified was 164 companies, of which 128 were existing companies and 36 were new.
Miti said it would continuously monitor and audit the open AP companies.
Under the new policy, if there is a breach of any of the AP conditions, the ministry will take decisive measures including withdrawing or suspending the allocated and approved AP; blacklisting the companies (including every shareholder and board member) from submitting any future application on open AP; and taking legal action against the company.
Last year, Miti has blacklisted nine existing companies for not complying with the conditions.
Among the conditions to be met are that the company must be 100 per cent owned by Bumiputeras (including having Bumiputeras in key management posts), has at least two years of experience in selling and distributing motor vehicles, and has a strong financial position.
Miti said details on current qualification as an open AP company and the latest list of open AP companies had been published in its portal, www.miti.gov.my.
The ministry welcomes complaints or feedback on issues related to the abuse of the AP facility.
Complaints can be emailed to [email protected] and the identity of the complainant will be kept confidential.
On the new policy implemented from Jan 1, 2019, Miti said it was in line with the government’s decision on Dec 23, 2015, to continue the policy of improvements, including providing the opportunity to new Bumiputera entrepreneurs to participate in the industry.
The objectives of the new policy are: i) to promote the development of the new Bumiputera entrepreneurs in the automotive industry; ii) to ensure the policy continues to contribute to the country’s socio-economic goals; and iii) to create market competitiveness that will benefit the consumers especially in terms of the prices and services. — Bernama