KUALA LUMPUR (June 18): The Ministry of Investment, Trade and Industry (Miti) will grant application for open approved permits (AP) from Bumiputera companies, even ones that have never been involved in the automotive sector, starting July 1.
An open AP is an import permit facility granted by Miti to qualified Bumiputera companies to import reconditioned vehicles for sale in the domestic market.
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.
"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," it said in a statement on Tuesday.
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 licence, including having a private limited status, being 100% 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.
Its minister Tengku Datuk Seri Zafrul Abdul Aziz had in October 2023 said the AP system for the import of motor vehicles must be maintained, as it is still relevant and essential towards protecting and supporting the development of the national automotive industry.
He explained in Parliament that the primary purpose of the government's use of APs to import cars, including electric vehicles, is to monitor and support the automotive industry in Malaysia.
Zafrul also emphasised that APs serve as a mechanism for collecting data and information to regulate as well as enhance policies, while updating guidelines related to the development of the automotive industry.
He was then responding to a parliamentary question from Kepong MP Lim Lip Eng, who had enquired about the government's hesitancy to abolish APs, excise taxes and import duties on electric vehicles to address air pollution issues in Malaysia.