KUALA LUMPUR: The Malay Businessmen & Industrialists Association of Malaysia (Perdasama) has commended the Investment, Trade, and Industry Ministry's (Miti) initiative to create opportunities for Bumiputera companies in the automotive sector.
Starting July 1, Bumiputera companies that have never been involved in automotive activities can apply for an Open AP (Approved Permit) to engage in vehicle import and sales in Malaysia.
Perdasama president Mohd Azamanizam Baharon expressed confidence that this move would significantly benefit Bumiputera companies by enabling their entry into the automotive industry, especially in the rapidly growing green technology vehicles segment, such as electric (EV) and hybrid vehicles.
"These opportunities will not only develop the local supply chain but also provide training and education in skilled labour for the automotive sector," he said.
He emphasised that this step aligned with the National Industrial Master Plan (NIMP) aimed at transforming Malaysia's industrial landscape to be more competitive, innovative, and sustainable.
He praised the awarding of Open APs to Bumiputera companies as a critical measure to ensure transparency and fairness.
The new policy allows any Bumiputera company, even those previously uninvolved in automotive activities, to apply to become an Open AP company.
Azamanizam suggested that Miti should publish the list of AP recipients periodically, updating it annually to maintain transparency.
"This will enable the public and stakeholders to see who receives APs and in what quantities. Additionally, Miti should provide clear guidelines on eligibility criteria, application procedures, and evaluations, based on market needs and national interest to prevent oversupply that could negatively impact current vehicle import and sales businesses in Malaysia," he added.
Azamanizam expressed strong confidence that opening up the automotive sector to Bumiputera companies would encourage their participation in various industry segments, including the marketing and internationalisation of spare parts, electrical and electronic components, artificial intelligence (AI) technology, and vehicle accessories.
He highlighted the potential for Bumiputera companies to enhance local products through collaboration and technology sharing with global vehicle manufacturers.
He said such collaborations could promote the marketing of local automotive products in international markets through trade shows, trade missions, and marketing campaigns.
"International collaborations can open new markets and boost the export of vehicles and automotive components," he added.