Pekema welcomes opening up of open APs to all bumi companies, but wants controlled selection and total

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The Malay Vehicle Importers and Traders Association of Malaysia (Pekema) welcomes the government’s plan to open up eligibility for open approved permits (APs) to any bumiputera company from July 1. However the association wants stringent …

from July 1. However the association wants stringent selection of capable companies and tight control of the total number of companies given APs.

“The total number of open AP companies has to be carefully controlled to ensure that the automotive industry remains competitive. This is important to avoid a glut to companies that might not be competitive in the market,” said Pekema president Datuk Hj. Mohamed Nazari Bin Noordin. “Stringent selection has to be done to ensure only the companies that can positively contribute to the automotive industry are given the chance, with emphasis on quality and not quantity,” he said, adding that priority should be given to companies that are truly qualified in terms of experience and financial capability.

The parallel importer club boss stated his worry that if companies given APs do not have the enough experience, it might lead to big losses as the ‘recon’ car market has high depreciation. He ended the statement by suggesting that the government’s plan to have more open AP companies undergo more studies before being fully implemented.company can apply to be appointed as an open AP company to engage in vehicle importation and sales activities in Malaysia.

Any company that wants to secure open APs must meet several conditions, including having Sdn Bhd status, 100% bumiputera ownership, a minimum paid-up capital of RM1 million and be in operation for at least two years.Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website.

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