MOT Clarifies Selection For New Vehicle Inspection Firms

The Ministry of Transport Malaysia (MOT) has responded to a viral post by Ir. Ts. Nurul Islam Mohamed Yusoff, who questioned the appointment of three companies — Wawasan Bintang Sdn. Bhd., Pakatan Petroleum Sdn. Bhd., and Beriman Gold Sdn. Bhd.—to operate new Motor Vehicle Inspection Centers (PPKM).

MOT clarified that the selection process was conducted through a Request for Proposal (RFP), which closed on Oct 31, 2024. A total of 12 companies submitted proposals, and all were evaluated according to Treasury Circular 2.8 – Procurement Procedures via RFP, which has been in effect since Nov 29, 2022.

MOT emphasised that selection was based on guidelines set under the Road Transport Act 1987 [Act 333]. The eligibility criteria, published on MOT and JPJ’s websites since April 23, 2024, required companies to be locally owned, have a minimum paid-up capital of RM10 million, maintain an annual working capital of RM5 million, and meet compliance standards within two years.

They also needed to provide a 5% security deposit, obtain environmental approval, and secure CITA International Motor Vehicle Inspection Committee membership within two years. Companies that are black-listed or  have pending legal issues were disqualified.

The Licensing and Evaluation Committee for PPKM confirmed that all three selected companies mentioned above met all requirements. MOT clarified that financial stability and operational capability were prioritised over the duration of registration with SSM.

Since 1994, PUSPAKOM has been the sole entity handling vehicle inspections under the Road Transport Act 1987. No other company had prior experience in this role. This reform aims to introduce competition and enhance transparency and service quality.

MOT explained that the locations for the new inspection centers were determined using a "cross-subsidy" concept to ensure balanced service distribution. This approach prevents companies from only selecting high-traffic areas and ensures accessibility for all road users.

The placement of these centers was decided by JPJ and MOT, not the selected companies.

The chosen companies received conditional approval on Feb 7, 2025. They now have 24 months to build the necessary infrastructure, acquire equipment, and hire staff before they can obtain an operating license.

MOT assured that this process does not impose financial burdens on the government. Failure to meet the conditions will result in license denial.

Ir. Ts. Nurul Islam, has since responded to MOT’s press statement further highlighting that all three chosen applicants did not meet the main criteria outlined by MOT to applicants which was - having prior experience and knowledge in the vehicle inspection field.