[Malaysia] Open Up The Big Black Box of AP

Sin Chew Jit Pao
03 June 2005

Open Up The Big Black Box Of AP

If you are not that forgetful, perhaps you should remember that very instant when president Dr Mahathir suddenly announced his resignation prior to the close of 2002 UMNO General Assembly.

And that before Mahathir finished his announcement, Rafidah abruptly rushed to his side and pleaded sensationally, "You must not go...." The scene, which was carried live on TV screens across the country, was comparable to the touching scene on Titanic, where Rose told Jack, "You jump, I jump!"

The political allegiances between Mahathir and Rafidah did add a
touch of romance to the otherwise icy and hostile political picture.

But to the Westerners, even one day can be too long in politics, meaning major changes can take place within the span of one day, in politics. If even one day is considered too lengthy, it is therefore utterly possible for some unexpected turns and twists to emerge in the erstwhile warm relationship between Rafidah and her ex-mentor in more than two years' time.

In a very unusual manner, Mahathir recently held a press conference at his retirement home to refute allegations that he had not been doing his work to wipe out corruption, in a way that corruption has become so rampant today.

But an interesting development was that while defending himself, he made a sharp bend and mentioned the AP issuance. He proposed that identities of all AP awardees be made known to the public, including how many APs each of them had received from the authorities, how many cars had been imported with those APs, the prices of the cars, as well as the taxes paid.

AP (Approved Permits) is a teratism of the country's unique socio-economic modus operandi. Only AP holders are allowed to import completely built-up cars (CBUs). APs have been designed to allow bumiputras to venture into the country's automobile industry, and as such, only companies in excess of 70% bumimputra equity are eligible to receive APs.

As AP is a product not commensurate with market economics, it is therefore also shrouded in a veil of mystery. As long as you are able to get hold of the AP, even if you are not involved in automobile business, you can still trade it. As such, AP has also become a tradable commodity.

To possess AP therefore means possess wealth, and the issuer of this AP is none other than the ministry of international trade and industries which Rafidah has been heading for the past two decades.

How does the MITI assess AP qualifiers? And where have all the 60,000-odd APs issued annually gone?

These are not only the queries of the general public, but those of Mahathir as well. He put it squarely, "In order to remove the doubts, the authorities should reveal the names of AP holders, how many they have been given, and how many units they have imported."

Of course, there is a motive behind Mahathir's raising of this issue at this particular juncture.

In the past, APs were issued to allow the holders to import mainly luxurious sedans. However, the numbers of APs issued have soared in recent years, such that even modestly priced compact cars have been able to make inroads into the Malaysian markets by means of APs.

And at the forefront of such an impact is Proton, of which Mahathir is an advisor. Consequently, Mahathir's action can be best described as a lashback from the national car manufacturer.

If not for the former prime minister, probably hardly anyone would have the guts to raise such a sensitive issue. And Mahathir's queries have been obviously targeted at Rafidah.

Not to be defeated, Rafidah responded on the following day, blatantly refusing to announce the list of AP awardees. She said there was no precedent for the list to be made public, adding that no lists had been revealed even when Mahathir was the trade minister. As if that was not enough, she even accused Proton for having performed disappointingly.

The heads-on clash between Mahathir and Rafidah attests to the fact that political ties would never be able to rival real-life interests. On top of that, the clash has also exposed politico-economic ties and a clash of interests.

Although the existence of APs has been meant to help bumiputra businessmen, it has been manipulated to benefit the cronies of awardees. While "no precedent" has been cited for the refusal to announce the list, it is actually the refusal to allow any light to seep into the black box operation of AP. If the government is serious about keeping its operation transparent, it should open up this black box for public scrutiny.

Mahathir wants the list, and Malaysians want the truth.