Open AP holders reach 414 following policy changes
The policy changes took effect on July 1, 2024, opening opportunities to bumiputera companies without previous automotive experience.
Malaysia had 414 companies with open approved permits (APs) as at Nov 5, against 107 in 2019, according to Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani. He attributed the rise to government measures aimed at widening bumiputera involvement in the automotive sector.
Speaking in the Dewan Rakyat’s special chamber, Johari said the revised policy was designed to allow more bumiputera entrepreneurs into the industry, even without previous experience. Before granting approval, the Ministry of Investment, Trade and Industry (Miti) checks whether applicants have the financial resources and ability to operate the business.
Johari said some holders had lost their permits because of “Ali Baba” practices. He was answering Lim Lip Eng (PH-Kepong), who called for a review so the policy would help ordinary bumiputeras rather than enrich wealthy Malay businesspeople.
On financing, Johari said Miti had earmarked RM30 million for Malaysian Industrial Development Finance Bhd to offer facilities to the entrepreneurs concerned. Applications require working capital ranging from RM1 million to RM3 million, according to each company’s needs.
He also pledged assistance for capable young individuals who have car-selling skills and established customer relationships but lack both capital and a business partner.
