Malaysia's new era for vehicle Inspection: Transformative guidelines unveiled for life after PUSPAKOM Monopoly

KUALA LUMPUR: Starting April 15, the Malaysian automotive world gears up for a significant shift as the Ministry of Transport unveils detailed guidelines for mandatory periodic vehicle inspections under the 1987 Road Transport Act.

According to Berita Harian, this initiative, spearheaded by Transport Minister Anthony Loke, lays out comprehensive standards for service conditions, inspection procedures, equipment requirements, operational conditions for inspection centers, service level agreements, and other related regulations.

Aiming for business sustainability, the guidelines stipulate a minimum paid-up capital of RM10 million and an annual working capital of RM5 million for service providers. License holders are mandated to conduct all inspection scopes required under the Road Transport Act 1987 (Act 333), with a strict prohibition on offering motor vehicle repairs, modifications, spare parts sales, vehicle sales, or any related transactions to preserve integrity.

This announcement follows the decision to end PUSPAKOM's current vehicle inspection service concession on August 31, breaking its monopoly and opening the market to qualified and competent parties effective September 1, 2024. Minister Loke highlighted that each tender would include two locations, one urban and one rural, to ensure comprehensive coverage and accessibility.

Qualifying parties must develop and operate both sites simultaneously, with locations to be announced during the briefing session. Licensees will be subject to a fee for each license issued, underscoring the government's commitment to maintaining inspection integrity, orderliness, and quality to ensure vehicle and road safety.

After a thorough assessment, the Ministry of Transport and the Road Transport Department (JPJ) will grant an interim approval for up to 24 months for preparation and development. Failure to complete the preparation process within this period will result in cancellation of approval and denial of license issuance.

Successful completion of the development process and confirmation will result in a JPJ-issued license to operate and conduct vehicle inspections for up to ten years, with the possibility of extension. Licensees must adhere to the stipulated service conditions and comply with any directives issued by the MOT or JPJ throughout the license period. Non-compliance may result in penalties, including suspension or cancellation of the license.

A briefing session on licensing conditions and related matters is expected to take place on April 23, marking a new era of vehicular safety and regulatory compliance in Malaysia.

PUSPAKOM (National Vehicle Inspection Centre) has been in monopoly of vehicle inspections in Malaysia since its establishment in 1994.

This government-appointed company was tasked with conducting mandatory vehicle inspections to ensure roadworthiness and compliance with safety and emission standards.

Its monopoly has lasted for nearly three decades, with changes only beginning to unfold recently as Malaysia moves to open up the vehicle inspection services to other qualified and competent parties.

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