Open AP policy from July 1 to benefit more bumi entrepreneurs

KUALA LUMPUR: Any bumiputra company, including companies that have never been involved in automotive activities, can apply to be appointed as an "Open Approved Permit (AP)" company to engage in vehicle importation and sales activities in Malaysia, effective July 1.

The Ministry of Investment, Trade and Industry said the move is in line with its efforts to continue to increase inclusiveness and transparency in the Open AP application process.

"The implementation of this policy is expected to attract more bumiputra companies to engage in the automotive industry. The increase will make this segment more competitive," the ministry said in a statement today.

For bumiputra companies that are interested, the ministry said the main conditions are "sendirian berhad" status, 100% bumiputra ownership, have a minimum paid-up capital of RM1 million and be in operation for at least two years.

Eligible companies can get the guidelines, application form and checklist at: www.miti.gov.my/index.php/pages/view/3796.

The ministry said the government's aim is to continue empowering the bumiputra socio-economic agenda by giving more competitive bumiputra entrepreneurs the chance to be involved in the automotive business.

According to the ministry, the Open AP policy has been carried out since 1970 and has produced viable bumiputra companies, not only in the segment of importing and selling vehicles, but also in key activities along the supply chain such as after-sales service, insurance and logistics.

The policy is one of several related to bumiputras that is still maintained until now and is important to achieve the target of 30% ownership of bumiputra equity in the national economy as outlined under the New Economic Policy.