In defending the system, Pekema president Zainuddin Abdul Rahman said the only thing that should be removed was the hefty RM10,000 levy imposed on car traders with APs as there was no such fee on other types of approved permits.

“There are about 800 types of APs in Malaysia and only an open AP (used by car traders) is charged such a high fee,” Zainuddin said after meeting with the Council of Eminent Persons (CEP) at Ilham Tower earlier today.

Zainuddin’s remarks come days after the government said it would be reviewing a proposal to do away with the AP system for food items to allow prices to be reduced.

Zainuddin said he it would be “near impossible” for the government to get rid of the AP system.

This is because doing so would go against Article 153 of the Federal Constitution, which deals with the safeguarding of the special position of the Malays and natives of Sabah and Sarawak and the legitimate interests of other communities, he said.

Zainuddin said he told CEP chairman Daim Zainuddin that getting rid of the system would greatly burden traders like himself.

He said for example, he had spent over RM20 millon on his car showroom, and would not be able to legally operate without an AP licence.

Previously, the Federation of Malaysian Consumers Associations (Fomca) had suggested that the AP system should be abolished to help reduce the price of goods as there were elements of monopoly involving some of the AP holders.

Ministry studies proposal to do away with AP system, bring down prices

Remove approved permit system for lower food prices, says consumer group