KUALA LUMPUR – The three companies selected to carry out vehicle inspection, ending Puspakom’s monopoly on the sector, are not newly established entities with minimal capital but have a paid-up capital of RM20 million, Transport Minister Anthony Loke said in the Dewan Rakyat today.
Dismissing concerns that one of the companies was only set up eight months ago, Loke clarified that the firm had been specifically established as a Special Purpose Vehicle (SPV) to enter the vehicle inspection industry.
“These are not RM2 companies or brand-new entities. The selected firms have RM20 million in paid-up capital and are capable of fulfilling the necessary requirements,” he said.
He stressed that all three companies met the stringent criteria set by the Transport Ministry (MoT) and had sufficient financial capability to invest in equipment, infrastructure, and a skilled workforce.
Responding to questions from Khairil Nizam Khirudin (Jerantut-PN) during the Minister’s Question Time regarding the technical qualifications of the selected firms, Loke clarified that the companies are given 24 months to set up and meet the technical criteria and reaffirmed that no extensions would be granted for the companies to commence operations.
Since 1994, Puspakom has held a monopoly over mandatory vehicle inspections in Malaysia. The government’s decision to liberalise the sector aims to enhance competition and improve service quality. Loke said that the criteria by MoT account for the reality that no other company has prior experience in Puspakom’s role.
“This is not a government project. The approval given to these companies is conditional. They must invest, establish their facilities, and meet all technical and operational requirements before being granted an operational licence.
“If they fail to do so within 24 months, they will not receive their licence,” he stated.
Loke also highlighted the rigorous regulatory oversight in place, stating that the Road Transport Department (JPJ) will closely monitor the development of these firms to ensure compliance with industry standards.
To prevent conflicts of interest, MoT required applicants to either establish new companies or ensure that their existing businesses were not directly involved in vehicle-related services such as sales, repairs, or modifications.
The three selected firms are Wawasan Bintang Sdn Bhd, Pakatan Petroleum Sdn Bhd, and Beriman Gold Sdn Bhd. Wawasan Bintang, despite being established eight months ago, lists vehicle inspection as its core business.
Pakatan Petroleum is involved in petroleum and gas trading, while Beriman Gold operates in construction, telecommunications, multimedia, security, and IT systems.
A total of 12 applications were submitted for the first phase of the licensing process, with unsuccessful firms either failing to meet key financial and technical criteria or having conflicts of interest. MoT has announced that a second phase of applications for vehicle inspection licences will be open from March 1 to June 30, 2025, allowing unsuccessful applicants and other interested firms another opportunity to enter the sector.
“We encourage more qualified local companies with experience and expertise in vehicle inspections to apply,” Loke said. – February 18, 2025