PETALING JAYA: The offer letters issued to companies for the operation of Motor Vehicle Inspection Services (PPKM) centres are conditional and can be revoked if the set criteria are not met, says the Transport Ministry.
In a statement on Monday (Feb 10), the ministry said these selected companies are required to prepare logistical infrastructure, appropriate tools and manpower, and meet other needs within 24 months before their operating licenses can be issued.
"This approach does not bring any financial implication to the government. If the companies fail to fulfil the requirements in the set time given, the operating licenses will not be issued," it said.
Additionally, the ministry and the Road Transport Department did not consider the length of time a company has been registered with the Companies Commission of Malaysia as a criterion in the vetting process, instead, prioritising the financial stability of the company.
The statement also said a "cross subsidy" method was used for location selection to ensure equal levels of service in both high- and low-capacity areas.
"This concept prevents any company from only choosing high volume locations and ensures access to vehicle inspection services to all users nationwide. "Location matching is to fulfil the terms started by the JPJ/Transport Ministry and not the companies," the statement added.
Transport Minister Anthony Loke had recently announced the appointment of three companies to implement Phase One of the PPKM centres, with new centres planned in Klang and Rawang of Selangor; Gua Musang in Kelantan; Mersing in Johor; Temerloh in Pahang as well as Kuching and Serian in Sarawak.
Companies that received the offer letters on Feb 7, are given 24 months to complete infrastructure requirements including premises development, procurement of inspection equipment and obtaining approvals from relevant authorities.
On Feb 6, Loke informed the Dewan Rakyat that the concession given to Puspakom was terminated in August 2023, a move to end the monopoly and expected to lead to healthier competition and improvements in vehicle inspection services.
