KUALA LUMPUR: The Association of Malay Importers and Traders of Motor Vehicles Malaysia (Pekema) has asked the government to review its proposal to allow for Bumiputera companies with no experience in automotive activities to become open approved permit (APs) holders.
Open AP holders are allowed to import and sell used foreign cars here.
Pekema President Datuk Mohamed Nazari Noordin said strict control on the number of companies that hold Open APs is needed to ensure the automotive industry remains competitive.
"The number of companies that can apply for the open AP should be closely monitored to ensure the automotive industry remains competitive.
This is important to avoid companies that may not be competitive in the market. Careful selection needs to be done to ensure that only companies that are able to contribute positively to the automotive industry are given a chance, with an emphasis on quality over quantity," he said.
Mohamed Nazari said priority should be given to industry players that demonstrated ability and experience in the field. "Priority should be given to qualified companies in terms of experience and capital," he added.
He said the appointment of companies that lack experience can result in significant losses as the value of used vehicles will depreciate greatly.
The Investment, Trade, and Industry Ministry's (Miti) announced yesterday that eligible Bumiputera companies with no experience in automotive activities can apply for Open APs for the import and sale of vehicles in Malaysia, effective July 1, 2024.
Eligible companies are those that are 100-per cent Bumiputera-owned; a private limited company; have a minimum paid-up capital of RM1 million; and have been in operations for at least two years.