Puspakom monopoly ending: JPJ to open applications for vehicle inspection services licence in June

PUTRAJAYA: Starting June, those looking to provide vehicle inspection services can apply for a licence from the Road Transport Department (JPJ), says Transport Minister Anthony Loke.

He said this is the ministry’s effort to encourage competition in the industry.

“By opening up this industry, we hope to attract additional investor interest, drive the development of new technology in the industry and create healthy industry competition that would benefit all,” he said on Tuesday.

Speaking at a press conference, Loke then shared the newest guidelines and requirements for vehicle inspection service providers (VISP).

Among these was the restriction on VISP locations, which the Ministry set.

“The VISPs will initially be offered to operate at two locations each, one to cover an urban area and another a rural area.

“The VISPs are then required to develop and operate both locations simultaneously with the list of locations to be provided during a future industry consultation session on April 23.

“With this, the ultimate goal will be to ensure every state, and possibly area, has at least one VISP to cover both the urban and rural communities,” he said.

Loke added that VISPs would also be required to have at least RM10mil in paid-up capital and RM5mil in working capital to ensure the company's business sustainability.

Once approved, qualified VISPs would be provided an interim approval period of up to 24 months, during which the companies must have fully developed and set up their vehicle inspection centres at both allocated locations.
“Any party that fails to complete all the preparation processes will have the interim approval revoked and will not be granted a licence.

“Those who succeed will be granted a licence to carry out vehicle inspections required under the Road Transport Act 1987 (Act 333) for a maximum period of up to 10 years with the ability to continue for another period to be determined later,” Loke said.

He added that the VISPs would not be allowed to offer repair, vehicle modifications, sale of spare parts, sale of vehicles and any transaction related to such services.

“All licencees will be required to provide services as stipulated under the licence's terms and comply with instructions issued by the ministry or JPJ throughout the licence’s period,” Loke said, adding that VISPs will be charged a fee for each licence issued.

He said the stakeholder briefing session on April 23 will provide additional licensing conditions. Anyone interested in attending can register at https://bit.ly/pemeriksaankenderaan.

“Further details on the process or procedure of submitting the application starting June 1 can be obtained through JPJ’s official website and media channels or directly contacting the JPJ Automotive Engineering Division after the briefing session,” Loke said.

In March 2023, Loke announced the cabinet’s decision to end Puspakom’s monopoly as the sole vehicle inspection services provider once their concession ends later this year, on Aug 31.

However, Loke added that Puspakom would continue to offer the services as its contract was extended for 15 years from Sept 1, 2024.