Accused of bias, Transport Ministry spells out selection criteria for vehicle inspection firms

KUALA LUMPUR, Feb 10 — The selection process for vehicle inspection service companies at Motor Vehicle Inspection Centres (PPKM) is carried out based on procurement and financial procedures, to ensure that the services are of high quality, transparent, and competitive.

The Ministry of Transport (MOT) informed that all 12 companies that submitted proposals in the Request For Proposal (RFP) process before the closing date of Oct 31, have been evaluated according to the procedures set out in the Treasury Circular 2.8.

“The selection of companies is based on the guidelines set under the Road Transport Act 1987 (Act 333), including the eligibility requirements, procedures, rules and standards that have been posted on the MOT website and the Road Transport Department since April 23, 2024,” the MOT said in a statement.

It also said that among the main conditions that must be met by companies participating in the RFP process are that they must be registered and licensed with the Companies Commission of Malaysia as well as local authorities, besides the company being wholly owned by a local company in the category of Private Limited or Berhad.

In the meantime, the company must have a paid-up capital of at least RM10 million throughout the service period, have a minimum working capital of RM5 million per annum and possess a standard compliance certificate from the Department of Standards Malaysia within two years from the date of the offer.

“The company must provide a minimum deposit or bond of 5 per cent of the working capital value, obtain a Certificate of Approved Facilities (KYDL) from the Department of Environment and be registered as a member of the International Motor Vehicle Committee (CITA) within two years from the date of licensing,” the statement added.

According to the statement, the assessment conducted by the PPKM Licensing and Evaluation Committee found that the three selected companies fully met the conditions set. In terms of location selection, MOT said the determination was made by MOT and JPJ, based on the concept of ‘cross subsidy’ to ensure a balance of services between high-capacity and low-capacity areas.

“This concept prevents any company from simply choosing high-volume locations and ensures access to vehicle inspection services to all consumers nationwide,” the statement said.

The selected companies must also ensure the provision of infrastructure, equipment, manpower, and other requirements within 24 months before the operating licence is issued, in line with the offer letter issued last Friday.

“This approach will not involve any financial implications for the government. If the company fails to meet the requirements within the stipulated period, the operating license will not be granted,” the statement said. — Bernama