THE Ministry of Transport (MOT) has affirmed the transparency and regulatory compliance of the selection process for companies involved in Phase One of the Motor Vehicle Inspection Centres (PPKM) programme.
The ministry’s statement comes after concerns were raised regarding the suitability of three newly appointed companies: Wawasan Bintang, Pakatan Petroleum, and Beriman Gold. These companies, along with Puspakom, were announced last Friday as providers of vehicle inspection services.
Questions arose due to Wawasan Bintang’s recent registration with the Companies Commission of Malaysia (CCM) on June 13, 2024, just a month before the Request for Proposal (RFP) process commenced on July 1. Further scrutiny stemmed from Pakatan Petroleum and Beriman Gold lacking prior experience in the automotive sector.
The MOT clarified that while no specific duration for CCM registration was mandated, financial stability was a key criterion. The ministry emphasised that since 1994, Puspakom held a monopoly on vehicle inspections, meaning no other company possessed prior experience in this specific function.
A total of 12 companies submitted proposals by the October 31, 2024 deadline. The ministry said all applications were evaluated according to Treasury Circular 2.8 – RFP Procurement Procedures, effective since November 29, 2022.
The selection process adhered to the Road Transport Act 1987 [Act 333], requiring companies to be wholly locally owned and CCM-registered, with a minimum paid-up capital of RM10 million and annual working capital of at least RM5 million.
To ensure equitable distribution of inspection centres, a cross-subsidy approach was implemented, preventing companies from concentrating solely on high-volume locations. The MOT and Road Transport Department (RTD) determined the location assignments, not the companies themselves.
Conditional approvals were granted to the selected companies on February 7, 2025. These companies have 24 months to establish infrastructure, acquire equipment, and recruit personnel before receiving operating licenses. The ministry confirmed this approach carries no financial implications for the government.
The MOT statement reiterated that the procurement process followed existing procurement and financial regulations, ensuring high-quality, transparent, and competitive vehicle inspection services for the public.
Puspakom’s 30-year concession ended on August 31, 2024, marking the end of its exclusive rights to periodic motor vehicle inspections. In September 2024, the government announced the end of Puspakom’s monopoly and invited applications from new operators.
-BTS Media
