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Bumiputera companies can apply for Open APs from July 1

Honda-N-BOX-2023

The Ministry of Investment, Trade, and Industry (MITI) has announced that, effective July 1, Bumiputera companies can begin applying to be appointed as Open AP companies to venture into vehicle importation and sales in Malaysia.

According to MITI, the initiative is aligned with its efforts to improve inclusiveness and transparency in the open AP application process. The applications are open to any Bumiputera company, including those that have never been involved in automotive activities.

The implementation of this policy is expected to attract more Bumiputera companies to participate in the automotive industry and increase competitiveness.

The main requirements include the company being a ‘sendirian berhad’, 100% Bumiputera-owned, having a minimum paid-up capital of RM1 million, and being in operation for at least two years.

Interested Bumiputera companies seeking to apply can refer to the guidelines, application form, and checklist provided at MITI’s website.

MITI further emphasized that the primary government objective is to strengthen the socio-economic agenda of the Bumiputera by providing opportunities for more competitive Bumiputera entrepreneurs to engage in the automotive sector.

The effective implementation of the Open AP policy 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 services, insurance and logistics.

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

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