APAD Permit Renewal: Ensuring Your Financed Lorry Stays Legal

The APAD Permit: Non-Negotiable for Lorry Operations

You've financed your lorry. You have insurance and road tax. You're ready to start operations.

Then you get pulled over at a JPJ checkpoint. Officer asks: "Where's your APAD permit?"

You don't have one.

Result: Compound fine RM500-RM2,000. Lorry impounded. Business shut down until permit obtained.

APAD (Agensi Kualiti dan Keselamatan Jalan Raya) permits are mandatory for all commercial lorries in Malaysia. Operating without one isn't just illegal—it's business suicide.

What is APAD Permit?

Overview

APAD permit (formerly JPJ permit) is:

• Official License: Required for all goods vehicles
• Issued By: Road Transport Department (JPJ) under APAD authority
• Valid For: 1-2 years depending on permit type
• Required For: Any lorry used for commercial transport

Permit Types

Goods Vehicle License (GVL):
• For lorries transporting goods
• Required for all commercial lorries
• Valid: 1-2 years

Public Service Vehicle License (PSV):
• For lorries providing passenger transport
• Specialized requirements
• Valid: 1 year

International Permit:
• For cross-border operations (Thailand, Singapore)
• Additional documentation
• Valid: 6 months - 1 year

APAD Permit Requirements

Documentation Needed

• Business Registration: SSM certificate (for companies)
• Lorry Registration: JPJ registration card
• Insurance Coverage: Comprehensive insurance proof
• PUSPAKOM Inspection: Valid inspection report
• Driver License: Valid GDL (Goods Driving License)
• Ownership Proof: Financing agreement or sale certificate

Vehicle Requirements

Lorry must meet:

• Age Limit: Under 10 years old (some permits allow up to 15 years)
• Condition: Roadworthy (PUSPAKOM certified)
• Equipment: Reflective tape, proper lighting, load securing equipment
• Weight Limits: Within registered load capacity

APAD Permit Costs

Application Fees

New Permit Application:
• Processing fee: RM50-RM100
• Permit fee: RM200-RM600 (depending on lorry type)
• Card issuance: RM20-RM50

Permit Renewal:
• Renewal fee: RM200-RM600
• Late penalty: Up to RM100

Permit Costs by Lorry Type

1-Ton Lorry: RM200-RM300 annually
5-Ton Lorry: RM300-RM500 annually
10-Ton Lorry: RM400-RM600 annually
Prime Mover: RM500-RM800 annually

Consequences of Operating Without APAD Permit

Legal Penalties

First Offense:
• Compound fine: RM500-RM2,000
• Lorry impoundment: Until permit obtained
• Court appearance required (certain cases)

Repeat Offense:
• Compound fine: RM2,000-RM5,000
• Lorry impoundment: Extended period
• Business license suspension risk

Business Impact

Immediate Consequences:
• Lorry impounded: Cannot operate
• Client commitments: Cannot fulfill
• Revenue lost: RM1,500-RM3,000 daily

Long-Term Consequences:
• Client trust damaged: May lose contracts
• Insurance claims: May be denied (illegal operation)
• Financing default: If lorry impounded, cannot generate revenue to pay installments

Financing APAD Permits with Your Lorry

Bundle Permit Costs in Financing

Instead of paying permit fees annually:

Traditional Purchase:
• Finance lorry: RM200,000
• Pay APAD permit annually: RM400 from operations

Bundled Financing:
• Finance lorry: RM200,000
• Include first year APAD permit: +RM400
Total Financed: RM200,400

Monthly Impact:
• Additional cost: RM8-RM15 per month
• No RM400 annual cash requirement
• Permit automatically renewed with financing

Multi-Year Permit Financing

Financing term 5 years. Include permit costs:

Example:
• Lorry price: RM200,000
• 5 years APAD permits: RM2,000 (RM400 × 5)
Total Financed: RM202,000
Monthly Installment: ~RM3,800 (includes permit)

Advantage: Never miss permit renewal. Always legal.

Ing Heng Credit: APAD Permit Specialists

1. We Include APAD Permits in Financing

We finance:
• Lorry purchase
• APAD permit application fees
• First year permit costs
• Multi-year permit renewals

Result: One monthly payment covers all permit requirements.

2. 0% Down Payment Preserves Permit Cash

APAD permits require upfront payment:

5-Lorry Fleet:
• APAD permit costs: RM2,000 (RM400 × 5)
• Additional documentation: RM500
Total Permit Cash Needed: RM2,500

With 0% Down Payment:
• RM2,500 preserved for other operations
• Permits bundled in financing
• No cash crunch during permit renewal

3. Permit Renewal Management

We track:

• APAD permit expiration dates
• Renewal requirements
• Documentation updates needed
• JPJ regulation changes

Optional Service: Reminder notifications before expiration.

4. Cross-Border Permit Support

For international haulage (Singapore, Thailand):

We understand:
• International permit requirements
• Additional documentation
• Bond requirements
• Customs clearance procedures

Real-World APAD Permit Stories

New Fleet Startup

\"Started logistics business with 3 lorries. Financed with 0% down—preserved RM60,000 capital. Thought could operate immediately. First day, pulled over by JPJ—no APAD permits. Lorries impounded. RM5,000 fines. Lost RM15,000 revenue while lorries impounded. Applied for permits, took 2 weeks. If had known about APAD requirement, would have included in financing. Now always ensure permits bundled. Ing Heng helped with next 5 lorries—all permits included, no more legal issues.\"

— Ahmad Zaki, Director

Permit Renewal Oversight

\"Operated 8 lorries for 5 years. APAD permits expired January—missed renewal date due to peak season workload. February, 2 lorries stopped for JPJ inspection, permits expired. Compound RM3,000. Lorries impounded 1 week each. Lost RM25,000 revenue. Client delays. Ing Heng refinanced fleet with permits bundled—monthly payment higher but renewals automatic. Never miss renewal again. 0% down preserved RM160,000 used for permit renewals and operations while refinancing processed.\"

— Zainal Abidin, Fleet Manager

Planning Your APAD Permit Strategy

Step 1: Determine Permit Requirements

For each lorry:
• Permit type needed (GVL, PSV, International)
• Permit duration (1-2 years)
• Required documentation
• Application fees

Step 2: Calculate Permit Budget

Fleet-wide:
• Total permit costs annually
• Renewal months (not all lorries renew same month)
• Cash flow impact during renewal months

Step 3: Bundle in Financing

When financing lorries:
• Include permit application fees
• Include first year permit costs
• Consider multi-year bundling
• Ensure automatic renewal provision

Step 4: Track Renewal Dates

Maintain schedule:
• Expiration date for each permit
• Renewal application deadlines
• Documentation update requirements
• JPJ inspection schedules

The Bottom Line: Legal Operations Aren't Optional

APAD permits aren't bureaucratic red tape—they're legal requirements. Operating without permits risks:

• Fines: RM500-RM5,000 per offense
• Impoundment: Lorries seized, business halted
• Client Loss: Contracts cancelled due to unreliability
• Financing Default: No revenue = missed payments = repossession

Bundle APAD permits in your lorry financing. 0% down payment preserves cash for other needs. Automatic renewals prevent lapses.

Don't let permit compliance shut down your logistics business. Finance legally and operate confidently.

Join 4,000+ businesses who have trusted Ing Heng Credit since 1985.