New Puspakom inspection competitors in Malaysia cannot be workshops, must adhere to regulations –

Last Friday, the transport ministry announced that Puspakom will no longer be the only agency providing vehicle inspection services from next year, when the company’s current concession comes to an end on August 31, 2024. While its concession will be renewed, Puspakom is set to face competition from other players.

Transport minister Anthony Loke said that any party that is qualified to handle mandatory inspections of commercial and private vehicles in the country and meets the conditions can be appointed to do so. However, they will be required to meet all the same conditions and regulations that have been imposed on Puspakom.

These include providing services in full compliance with the scope, standards and procedures of motor inspection as well as only appointing employees who meet the prescribed qualification requirements and using computerised inspection equipment that is regulated and approved by the road transport department (JPJ).

Additionally, the vehicle inspection providers can only charge the inspection fee rate that has been set, and they are not allowed at all to offer vehicle repair or modification services as well as the sale of spare parts. The last point means that this rules out “any workshop can inspect” kind of future, and that the providers will likely need to adopt a setup similar to Puspakom.

🚗 This was following public complaints about lack of efficiency as they had to spend hours waiting for their vehicles to be inspected and also the fact that there is a limited number of Puspakom branches in certain places.#BernamaInfographics

— BERNAMA (@bernamadotcom) March 24, 2023

Puspakom itself will have to make improvements, with the government asking the company to amend its procedures and modernise key elements of the business. This includes improving the booking process and expanding the use of automation and computer equipment as well as installing equipment/sensors/cameras to enable inspections to be monitored online in real-time by users, the transport ministry and JPJ.

It also has to build new inspection centres, including flagship facilities, in agreed locations based on service requirements in locations that require them, and also increase the level of staff competence by providing a human resource development training system that is more effective and relevant to current needs, among other things.

The ministry said it will ensure that the opening of periodic inspections to other parties does not contribute to unhealthy competition elements, adding that JPJ will continuously audit and monitor all parties that provide the service to ensure compliance, quality and integrity of inspections. It said any party found in violation of any condition set will be penalised or have its permission to carry out inspection revoked.

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