The Ministry of Transport Malaysia (MOT) would like to clarify issues raised on social media regarding the eligibility and selection of companies to provide vehicle inspection services at Motor Vehicle Inspection Centres (PPKM).

As is well known, a total of 12 companies submitted proposals during the Request For Proposal (RFP) process before the closing date of 31 October 2024. All applications were evaluated according to the procedures outlined in Treasury Circular 2.8 – RFP Procurement Procedures, which has been in effect since 29 November 2022.

The selection of companies was based on the guidelines set out under the Road Transport Act 1987 [Act 333], including eligibility requirements, procedures, regulations, and standards, which have been published on the MOT and JPJ websites since 23 April 2024. The key requirements that companies participating in the RFP process must meet include:

1. Registration and licensing with the Companies Commission of Malaysia (SSM) and local authorities (PBT).
2. Full ownership by a local company categorised as Sdn. Bhd. or Bhd.
3. A minimum paid-up capital of RM10 million throughout the service period.
4. A minimum working capital of RM5 million per year.
5. Certification of compliance with standards from the Department of Standards Malaysia within two years from the date of the offer.
6. A security deposit or bond of at least 5% of the working capital.
7. Approval of a Certified Facility (KYDL) from the Department of Environment before licensing.
8. Registration as a member of the International Motor Vehicle Committee (CITA) within two years from the licensing date.
9. Shareholders, company owners, or board members must not be involved in any legal proceedings or be blacklisted by any authority.

Following an evaluation by the PPKM Licensing and Evaluation Committee, three selected companies were found to fully meet the stipulated requirements. MOT and JPJ did not set the duration of registration with SSM as an eligibility criterion; instead, priority was given to the financial stability of companies based on their ability to provide sufficient paid-up capital and working capital.

Since 1994, PUSPAKOM has been the sole company mandated to conduct vehicle inspections under the Road Transport Act 1987. Therefore, no other company has prior experience in carrying out PUSPAKOM’s functions.

Regarding location selection, decisions were made based on the "cross-subsidy" concept to ensure service balance between high-capacity and low-capacity areas. This concept prevents companies from selecting only high-volume locations and ensures access to vehicle inspection services nationwide.

It is important to emphasise that the location allocation to fulfil the above objectives was determined by JPJ/MOT and not by the companies themselves.

The offer letters issued to the selected companies on 7 February 2025 are conditional approvals, requiring companies to ensure the provision of infrastructure, equipment, workforce, and other requirements within 24 months before an operational licence is granted.

Therefore, this approach will not impose any financial implications on the Government. If a company fails to meet the stipulated requirements within the given timeframe, the operational licence will not be issued.

The Ministry of Transport affirms that this procurement process was conducted in accordance with the prevailing procurement and financial procedures to ensure high-quality, transparent, and competitive vehicle inspection services for the benefit of the public.