Open AP policy from July 1 to benefit more bumi entrepreneurs

 

Any bumiputera company, including those that have never been involved in automotive activities, can apply to be appointed as an Open AP company to engage in vehicle importation and sales activities in Malaysia, effective July 1.

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

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

The ministry said interested bumiputera companies must have sendirian berhad (private limited) status, have 100 percent bumiputera ownership, have a minimum paid-up capital of RM1 million and be in operation for at least two years.

Interested and eligible bumiputera companies can refer to the guidelines and checklist, and fill up the application form.

The ministry added that the government’s main objective is to continue empowering the bumiputera socioeconomic agenda by providing opportunities for bumiputera entrepreneurs to be part of the automotive sector.

According to the ministry, the Open AP policy implemented since 1970 has successfully produced viable bumiputera 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.

This policy is one of many related to bumiputera that is still maintained and is crucial for achieving 30 percent bumiputera equity ownership in the national economy as outlined under the New Economic Policy.

- Bernama