KUALA LUMPUR, Nov 5 — The number of companies holding open approved permits (AP) has risen to 414 as of today, up from 107 in 2019, following the government’s move to expand bumiputera entrepreneurs’ participation in the country’s automotive industry.
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said the enhancements to the open AP policy, which took effect on July 1, 2024, are intended to expand opportunities for more bumiputera entrepreneurs, including companies with no prior experience in the automotive industry.
He said the Ministry of Investment, Trade and Industry (MITI) also screens open AP applicants to ensure it grants approval only to companies with the capability and financial capacity to carry out the business.
“A few had obtained APs, but we revoked the permits due to ‘Ali Baba’ practices. Hence, we thoroughly vet these applicants before approval.
“There are 28 industries in Malaysia, so how can we just grant (APs) for critical industries to just anyone? Ultimately, we must also monitor these industries to ensure they can carry out the responsibilities entrusted to them,” he said during a Special Chamber session in the Dewan Rakyat today.
He was replying to a question from Lim Lip Eng (PH-Kepong), who asked the government to review the AP policy to support ordinary bumiputeras, not enrich Malay tycoons.
Johari also said the government, via MITI, has allocated RM30 million to Malaysian Industrial Development Finance Bhd to provide financing facilities for the relevant entrepreneurs.
He said the financing application requires working capital of between RM1 million and RM3 million, depending on the company’s needs.
“There are many capable, young individuals who lack both a business partner and capital. Hence, they seek partners with whom they can run a business.
“They actually possess skills in selling cars and have built relationships with customers. (So) we will assist them,” he said.
