KUALA LUMPUR: The Ministry of International Trade and Industry (Miti) welcomes all Bumiputera companies, including those with no prior experience in the automotive trade, to apply for open approved permits to import used cars.
The move, according to economist Dr Geoffrey Williams, will create a more agile and competitive ecosystem and help improve market-driven innovations and access to new models more quickly.
He told Bernama that easing the restriction would provide more choices for consumers and should help make vehicles more affordable.
“APs (approved permits) have been a major market entry barrier for many years so easing this restriction will help to open up the automotive sector and make it more competitive. It will help the automotive sector grow because local providers are now strong enough to compete,” Williams said.
“This will help Bumiputera companies compete against restrictions from the past,” Williams said.
He said the APs in the past had harmed Bumiputera companies by restricting access to licensed vendors and closing down market opportunities.
On Wednesday, Miti announced that any Bumiputera company, including companies that have never been involved in automotive activities, can apply to be appointed as an Open AP company to engage in vehicle importation and sales activities in Malaysia, effective July 1.
Miti said the move is in line with its efforts to continue to increase inclusiveness and transparency in the Open AP application process.
Bumiputera companies looking to apply for an open AP must be Sdn Bhd; 100% Bumiputera-owned; have a paid-up capital of RM1 million’ and have been in operation for at least two years.
Williams also said the business’s main importance is sales, marketing and after-sales support functions. “The AP issue is for importing vehicles as fully made-up products so experience in automotive is not so important. This is essentially a sales, marketing and after-sales support function,” he added. – Bernama
