Policy on AP from MITI

Just got this "Policy On Approved Permit (AP) For Motor Vehicle" from the MITI website:

1. Import Licensing through Approved Permit (AP) was introduced in 1970 with the objective of promoting and providing opportunities for bumiputera entrepreneurs in the automotive sector.

2. In 1987, a review was undertaken on the AP policy involving all 269 AP holders:


DECISIONS
* There will be no APs considered to new non franchise companies with immediate effect. Allocation of APs is restricted to new franchise companies only.
* Allocation of APs for 153 companies were withdrawn due to:
- business not in operation;
- no showroom and service facilities;
- misuse of AP, i.e. selling of APs;
- improper management of account i.e. allowing unauthorised parties including non AP holders to manage the account.
* Continue APs allocation to existing 116 companies, comprising:
- 76 Open AP Holders (to import any brand of car from any country); and
- 40 Franchise Holders (to import specific brands and makes from its principal).
* Encourage the existing quota holders to join/form consortia:
- to enhance efficiency; and
- to be more viable in terms of access to financial, after sales service and showroom facilities.

CURRENT POLICY

3. COMPLETELY KNOCKED DOWN (CKD)
* APs for importation of CKD packs by manufacturers, assemblers or contract assemblers are based on requested by the companies.
* Companies must have valid Manufacturing License or Contract Assembly approval.
* Companies that are in direct competition with models produced by national manufacturers are required to export 80 per cent of production. Performance of export must be submitted to MITI on monthly basis.

4. COMPLETELY BUILT-UP UNIT (CBU)
* APs on Passenger Cars are divided into 2 categories:
- non-franchise APs (open APs) for new/used passenger car and multipurpose vehicle (MPV).
- franchise APs for specific makes and models of passenger car and MPV.
* A new franchise company is evaluated based on:
- valid franchise agreement between importer and the principal/manufacturer;
- direct importation of vehicles from the principal/factory overseas;
- the models have not been assembled/ marketed in Malaysia;
- 70 per cent bumiputera equity holding;
- proven financial and management capability; and
- availability of sales/showroom facilities and after sales service.
* Import restriction (parallel import) is granted on brands under exclusive franchise agreement.

5. ADMINISTRATION OF APs
* Allocation of APs
- For new franchise companies, annual allocation of APs is based on the number of distributors and dealers appointed.
- Subsequent annual allocation is based on previous year’s performance of import and sales.
- Company to submit the import and sales performance report by the 10th of every month.
- Documents to be submitted are copies of:
- Form JK69 (AP) – Approved Permit (AP) issued by MITI
- Form K1/K8 – Import declaration issued by Kastam DiRaja Malaysia
- Sales Invoice – Issued by AP Holders to the distributors/buyers
- Certificate of Vehicle Registration (JPJ); and
- Letter of Undertaking – Issued by the financial institution.
- APs will not be allocated if company fails to submit the relevant documents and information.
* Issuance Of APs
- APs will only be issued upon submission of original Bill of Lading.

6. IMPORTS FROM ASEAN
* Effective 1 January 2005 all categories of vehicles imported from ASEAN are subject to import duty of zero to 20 per cent:
- CKD for all vehicles – zero import duty.
- CBU for Passenger Car/MPV/4WD/Van/Bus – 20 per cent import duty.
- CBU for Motorcycle – 20 per cent import duty.
* Importation of new motor vehicles from ASEAN requires APs for the purpose of monitoring and collection of data.
* APs will be issued based on quantity requested by Franchise Holders.

7. IMPORTS FROM NON ASEAN
* Effective 1 January 2005 all categories of vehicles imported from Non ASEAN are subject to import duty of 10 to 50 per cent:
- CKD for Passenger Car/MPV/4WD/Van – 10 per cent import duty.
- CKD for Bus and Lorry – zero import duty.
- CKD for Motorcycle – zero to 10 per cent import duty.
- CBU for Passenger Car/MPV/4WD/Van – 50 per cent import duty.
- CBU for Bus – 30 per cent import duty.
- CBU for Lorry – 35 to 50 per cent import duty.
- C BU for Motorcycle – 40 per cent import duty.
* Current arrangement on import requirements from Non ASEAN will continue.

New Alfa Romeo Models

Sime Darby Auto Italia Sdn Bhd, (100% owned by Sime Darby Bhd.), the distributor for Alfa Romeo in Malaysia, recently unveiled six new models — 147, 156, 156 GTA, 156 Sportswagon, 166 and Alfa GT Coupe.

156 GTA


147

The event also marked the official launch of the Auto Italia headquarters and 3S (sales, service and spares) center at Glenmarie, Shah Alam.

Extra Info.

Milan Auto (M) Sdn Bhd. was the previous distributor of the marque in the country from 1990 until Fiat Auto terminated the franchise in 2003.

The Sime Darby group acquired the franchise for Alfa Romeo through Sime Cerah Sdn Bhd., absorbing some staff from the previous distributor in the process.

SIME Darby Auto Italia Sdn Bhd, managing director: Radzi Zainal

Sime Darby managing director-Motor Group (Malaysia): Rajan Thurairatnam

Alfa Romeo Sales Europe and Extra Europe Fiat Auto Spa sales coordination representative: Hans Hoegstedt.

Newspaper Reports:

NST

Star

NGV

With Petrol and Diesel prices showing rising it really makes sense to look for alternatives. If you are living in the Klang Valley, you might look at converting your car to run on natural gas.

This is not a new technology and has been proven in several countries with Argentina and Brazil leading in terms of the number of Natural Gas Vehicles (NGVs). At present most of the vehicles using NG in Malaysia are taxis.

Here I will discuss some of the advantages, disadvantages and future potential in Malaysia.

Advantages:
- Natural gas is much cheaper (at 63.5 sen/ litre) than either petrol or diesel.
- It is also much more environment friendly as gas burns more cleaner with less harmful emissions. All public vehicles in New Delhi, India have converted to run on natural gas.
- There is abundant supply and prices are quite stable.
- Govt. incentives. Road tax reduced - 25% for bi-fuel( use either NG and patrol or NG and diesel) and 50% for monofeul NGVs (only NG).

Disadvantages:
- High cost of converting to run on natural gas. At present in Malaysia the conversion kits costs about RM3500.
- Limited refueling stations around the country. At present a few stations are located - in Kuala Lumpur, Klang, Seremban, Johar Baru and Prai.

Looking at long queues of Taxis at KLCC and Kelana Jaya Petronas stations made me realize that it is not really feasible alternative at present.

Future Scope
- Conversion costs will definitely go down as more companies come in with more choices.
- The number of refeuling stations will increase in the future. According to a recent report, Petroliam Nasional Bhd (Petronas) plans to open 10 new NGV stations this year and 94 by the year 2010.

RELATED LINKS

- Asia Pacific Natural Gas Vehicles Association

- International Association For Natural Gas Vehicles

- Green Car Congress