Published on June 29th, 2019 | by Daniel Sherman Fernandez


What is the status of the 36 NEW Car AP Holders?


In the past few months we have been asked by some of our readers on the audit status of the 36 new used/reconditioned car Approved Permit(AP) holders. When we first uncovered the issuance of 36 new AP holders in Malaysia and reported it on March 7th 2019, the news went around like wild fire and attracted the attention of the Ministry of International Trade and Industry (MITI) and also several news portals who shared our discovery with earnest.

Malaysians were not happy that the AP issuance had increased instead of being reduced.

MITI was quick to response that the 36 new AP holders will be audited and checked to ensure that each and every NEW AP holder was doing the business properly and not just selling the AP’s to existing AP holders or used car dealers who are not qualified to receive AP’s (as we reported in our March 7th article).

Now some 4 months later we need to find out the audit status to share with our readers as this is an unresolved issue that Malaysians want answers.

Meanwhile, news portal, Malaysiakini has just reported that MITI completed its preliminary investigations on a dormant company which received permits to import 50 vehicles. Malaysiakini reporting crew have discovered that at least one company – SH Warisan Sdn Bhd – was dormant and did not even have a showroom.

MITI secretary-general Lokman Hakim Ali said the ministry has yet to decide whether to make the findings public because the matter has to be deliberated by MITI minister Darell Leiking.

2016 Ram 1500 Laramie Limited Crew Cab 4×4

MITI’s statement on the 13th of March, 2019 outlined some of the stringent conditions by which existing AP holders as well as new applicants were evaluated before their APs were issued in 2019. These companies:

1.         Must be 100% Bumiputera-owned companies based on their registration with the Companies Commission of Malaysia (CCM)

2.         Must have paid up capital of at least RM1 million

3.         Must have experience of at least 2 years in selling and distributing motor vehicles

4.         Must not have directors / shareholders / management team with shares in other companies holding open APs

5.         Must have a minimum of 5 full-time staff in management, marketing and the technical departments

6.         Must have a suitable showroom and office

7.         Must have the financial and managerial capabilities to operate a business to sell imported vehicles via Open APs

Once a company has been allocated Open APs, they must comply with the additional requirements:

1.         Any change in the equity holdings and the directors of any company must obtain the approval of MITI before this can be executed

2.         No usage of middle-men or intermediary companies to sell these Open AP vehicles

3.         Opening of new branches to sell vehicles obtained via the Open AP must have the approval of MITI

4.         The vehicles must be displayed or stored in a MITI-approved premise

5.         The documents for importation (Bill of Lading / Airway Bill) must not be more than 1 month from the date when the company submitted its AP application to MITI. The name of the company in these documents must be the same as the name of the company in the MITI application and approval forms.

6.         The company must produce the import and sales figures as well as the record of inventory to MITI before the 10th of every month

7.         The APs must be used in the year of approval which is before the 31stof December every year

8.         The company must prepare a warranty of at least one year and have an agreement with the Original Equipment Manufacturer (OEM) to provide after sales services

As a result of these stringent application and approval conditions, only 164 out of 282 applications were approved by MITI. Out of these 164 approved applicants, 128 are existing companies and 36 are companies which previously did not receive any APs (termed as “new” companies).  Out of 109 applications by new companies, only 36 were approved.

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